Chit Funds Act 1971

Chit Funds Act 1971 2020 REVISED EDITION This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021 An Act to provide for the licensing and regulation of chit funds. [14 January 1972] PART 1 PRELIMINARY Short title 1. This Act is the Chit Funds Act 1971. Interpretation 2. In this Act, unless the context otherwise requires — “agreement” means the document which contains the terms and conditions agreed to and adopted by the subscribers and the chit fund company; “Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act 1970; “chit fund” means a scheme or an arrangement based wholly on the terms and conditions set out in section 24 or the regulations made under this Act or any scheme or arrangement that is deemed to be a chit fund under section 19 but does not include any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of section 20; “chit fund amount” means the pool or the aggregate of the contributions payable on any specified day or in respect of any specified interval; “chit fund business” means the business of carrying on chit funds; “chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act; “contribution” means the sum of money payable periodically by each subscriber under the agreement; “essential terms and conditions” means the terms and conditions specified in section 24; “interest” means that amount of money which the subscriber agrees to forego in order to purchase the chit fund amount; “prize” or “prize amount” means the difference between the chit fund amount and the interest; “public company” means a company limited by shares incorporated in Singapore other than a private company; “rebate” means the share of the interest payable to each subscriber; “subscriber” includes any person who has agreed to participate in a chit fund or has signed the agreement in token thereof.