—(1) The Society shall maintain and administer in accordance with this section a fund to be known as the Compensation Fund (referred to in this section as the Fund).
(2) Every solicitor shall in each year prior to his application for a practising certificate pay to the Society a contribution of such sum not exceeding $200 as the Council may from time to time determine and the Society shall pay that contribution to the Fund:
Provided that a solicitor who applies for a practising certificate between 1st October in any year and 31st March in the next year shall be required to pay only half the contribution so determined if the practising certificate for which he proposes to make application will remain in force for less than 6 months.
(3) The Society may invest any moneys which form part of the Fund and are not immediately required for any other purposes and, for the purposes of this section, the Society shall have all the powers vested in trustees under the law for the time being in force in Singapore.
(4) The Society may borrow for the purposes of the Fund from any lender and may charge any investments of the Fund by way of security for such a loan.
(5) The Society may insure with any person authorised by law to carry on insurance business within Singapore for such purpose and on such terms as the Society may consider expedient in relation to the Fund.
(6) There shall be carried to the credit of the Fund —
all annual contributions paid to the Society in pursuance of subsection (2);
all interest, dividends and other income or accretions of capital arising from the investments of the Fund;
the proceeds of any realisation of any investments of the Fund;
all moneys borrowed for the purposes of the Fund;
all sums received by the Society under any insurance effected by the Society under subsection (5); and
any other moneys which may belong or accrue to the Fund or be received by the Council in respect thereof.
(7) All moneys from time to time forming part of the Fund and all investments of the Fund shall be applicable —
for payment of any costs, charges and expenses of establishing, maintaining, administering and applying the Fund;
for payment of any costs, charges and expenses of the Council in ascertaining whether the rules made under section 72 have been complied with, pursuant to the powers given by those rules;
for payment of any premiums on insurances effected by the Society under subsection (5);
for repayment of any moneys borrowed by the Society and for payment of interest on any moneys so borrowed;
for payment of any grants which the Society may make under subsection (9); and
for payment of any other sums properly payable out of the Fund by virtue of this section.
(8) If in any year there has been neither an application for a grant from the Fund nor a grant made from the Fund, the Council may in its discretion transfer from the Fund all interest, dividends and other accretions of capital arising from the Fund or any part thereof to a fund of the Society established for the purposes of purchasing or maintaining a library for the use of the members of the Society.
(9) Where it is proved to the satisfaction of the Council that any person has sustained loss in consequence of dishonesty on the part of any solicitor or any clerk or servant of a solicitor in connection with that solicitor’s practice in Singapore as a solicitor or in connection with any trust in Singapore of which that solicitor is a trustee, then subject to this section, the Society may, if the Council thinks fit, make a grant to that person out of the Fund for the purpose of relieving or mitigating that loss.
(10) A grant may be made under this section whether or not the solicitor had in force a practising certificate when the act of dishonesty was committed and notwithstanding that subsequent to the commission of that act the solicitor has died or had his name removed from or struck off the roll or has ceased to practise or been suspended from practice.
(11) On the making by the Society of any grant under this section to any person in respect of any loss —
the Society shall to the amount of the grant be subrogated to any rights and remedies in respect of the loss of the person to whom the grant is made or of the solicitor, clerk or servant;
the person to whom the grant is made shall have no right under bankruptcy or other legal proceedings or otherwise to receive any sum out of the assets of the solicitor, clerk or servant in respect of the loss until the Society has been reimbursed the full amount of its grant.
(12) References in subsection (11)(a) and (b) to the person to whom the grant is made or to the solicitor, clerk or servant shall include, in the event of his death, insolvency or other disability, references to his personal representative or any other person having authority to administer the estate.
(13) The Council may make rules with respect to the procedure to be followed in giving effect to this section and with respect to any matters incidental, ancillary or supplemental to these provisions or concerning the administration or protection of the Fund and no grant shall be made under this section in respect of any loss unless notice of the loss is received by the Society in such manner and within such time after the loss first came to the knowledge of the person sustaining the loss as may be prescribed by the rules.