TRUSTEES (AMENDMENT) BILL

Order for Second Reading read. 5.34 p.m.

The Minister of State for Law and Home Affairs (Prof. S. Jayakumar): Mr Speaker, Sir, on behalf of the Minister for Law, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Trustees Act (Chapter 40) by increasing the borrowing power of an "approved company" from three-quarters to the full amount of its mortgage assets.

An "approved company" is defined in the Act as one that is incorporated in Singapore and which has a place of business in Singapore having, as its sole or primary object, the promotion of home ownership by advancing purchase monies, repayable by instalments over a specified period of time.

Section 4(2) of the Act lays down the conditions under which trust funds may be invested with an approved company. One of the conditions is that the total amount borrowed by the approved company must not exceed three-quarters of its mortgage assets.

Representations have been made that the borrowing power of an approved company be increased from three-quarters to the full amount of the company's mortgage assets.

After consideration of these representations, it is felt that the limit imposed by the Act could properly be raised from threequarters to the full amount of the mortgage assets. This, however, requires an amendment to section 4(2)(c) of the Trustees Act; hence the Bill before this House.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Prof S. Jayakumar).

Bill considered in Committee; reported without amendment; read a Third time and passed.