5.11.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration by General Clearing Member

Past version: Effective up to 28 Dec 2014

Each General Clearing Member shall not, without the prior written approval of CDP, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—

(1) in the case where the General Clearing Member is incorporated in Singapore:—
(a) the base capital of the General Clearing Member is less than the base capital requirement as prescribed in Rules 5.1.1(1) and 5.4;
(b) the financial resources (including qualifying letters of credit referred to in Rule 5.1C) of the General Clearing Member are less than 150% of its total risk requirement;
(c) the aggregate indebtedness of the General Clearing Member exceeds 600% of its aggregate resources; or
(d) such a loan, advance, payment or increase will cause an event in Rule 5.11.4(1)(a), (b) or (c) to occur; or
(2) in the case where the General Clearing Member is incorporated outside Singapore:—
(a) the net head office funds of the General Clearing Member are less than the net head office funds requirement as prescribed in Rules 5.1D.1(1) and 5.4;
(b) the adjusted net head office funds (including qualifying letters of credit referred to in Rule 5.1G) of the General Clearing Member are less than 150% of its total risk requirement;
(c) the aggregate indebtedness of the General Clearing Member exceeds 600% of its aggregate resources; or
(d) such a loan, advance, payment or increase will cause an event in Rules 5.11.4(2)(a), (b) or (c) to occur.

Amended on 1 July 20081 July 2008.