Notice 813 Immovable Properties

MAS 813 1 December 1983 (updated on 21 Nov 05) NOTICE TO FINANCE COMPANIES FINANCE COMPANIES ACT, CAP 191 BS (FC) Circular No. 3/75 dated 14 March 1975 is cancelled. Immovable Properties Pursuant to Section 27 of the Finance Companie Act, no finance company shall purchase or acquire any immovable property in excess of 25% of its paid-up share capital and published reserves. This limit does not apply to investment in immovable properties for the purpose of conducting its business or of housing or providing amenities for its staff. For purpose of complying with Section 27 of the Finance Companies Act, the following should not be treated as 'Finance Company Premises':- (a) Vacant buildings or buildings that are still under construction Unless permission has been obtained from the Authority to treat certain specific vacant or incomplete buildings as "Finance Company Premises", finance companies are to classify such buildings as "Other Immovable Properties". These are subject to the 25% limit specified in Section 27 of the Finance Companies Act. (b) Buildings that are partially occupied by finance companies Only that portion of a building that is actually occupied by the finance company is to be classified as "Finance Company Premises". The remaining portion of the building is to be shown as "Other Immovable Properties". The apportionment should be made on the basis of professional valuation of the floor area actually occupied by the finance company. (c) Built-in vaults and renovation expenditures incurred on rented properties These are to be classified as "Other Fixed Assets" of the finance company. Last modified on 19/3/2007