2.11.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration

Past version: Effective up to 28 Dec 2014

2.11.4.1 Each Clearing Member, except for a Bank Clearing Member, shall not, without the prior written approval of the Clearing House, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—
a. in the case where the Clearing Member is incorporated in Singapore:—
i. the base capital of the Clearing Member is less than the base capital requirement applicable to the Clearing Member under Rule 2.07;
ii. the financial resources (including qualifying letters of credit referred to in Rule 2.07C) of the Clearing Member are less than 150% of its total risk requirement;
iii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources; or
iv. such a loan, advance, payment or increase will cause an event in Rules 2.11.4.1.a.i, ii or iii to occur;
or
b. in the case where the Clearing Member is incorporated outside Singapore:—
i. the net head office funds of the Clearing Member are below the net head office funds requirement applicable to the Clearing Member under Rule 2.08;
ii. the adjusted net head office funds (including qualifying letters of credit referred to in Rule 2.08C) of the Clearing Member are less than 150% of its total risk requirement;
iii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources; or
iv. such a loan, advance, payment or increase will cause an event in Rules 2.11.4.1.b.i, ii or iii to occur.

Amended on 27 March 200627 March 2006 and 10 August 200710 August 2007.