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SINGAPORE: The recipient of payment in coins for large sums of money "has the right" to reject the coins and, in such cases, the payer continues to owe the debt, the Monetary Authority of Singapore (MAS) said on Friday (Nov 7).
It said this in response to media queries on two recent incidents in which people tried to pay large amounts in coins. One involved Sim Lim Square retailer Mobile Air, which tried to give a refunded of S$1,010 to a female customer in 18kg of coins. The other incident saw Mr Lester Ong Boon Lin dumping S$19,067.85 in coins at Exotic Motor, after the court ordered him to pay the company that amount.
According to the Currency Act, the legal tender limit for coins of denomination below 50-cents is S$2 per denomination. For 50-cent coins, the limit is S$10, and there are no limits for S$1 coins, the regulator said.
"In view of recent incidents of payment in coins for large sums of money, the MAS reiterates that a payee has no obligation to accept coins beyond the legal tender limits set out in the Currency Act," a MAS spokesperson told Channel NewsAsia.
"The payee has the right to reject coins used to pay any amount in excess of the limits, and may take civil action against the payer to recover the debt."
- CNA
It said this in response to media queries on two recent incidents in which people tried to pay large amounts in coins. One involved Sim Lim Square retailer Mobile Air, which tried to give a refunded of S$1,010 to a female customer in 18kg of coins. The other incident saw Mr Lester Ong Boon Lin dumping S$19,067.85 in coins at Exotic Motor, after the court ordered him to pay the company that amount.
According to the Currency Act, the legal tender limit for coins of denomination below 50-cents is S$2 per denomination. For 50-cent coins, the limit is S$10, and there are no limits for S$1 coins, the regulator said.
"In view of recent incidents of payment in coins for large sums of money, the MAS reiterates that a payee has no obligation to accept coins beyond the legal tender limits set out in the Currency Act," a MAS spokesperson told Channel NewsAsia.
"The payee has the right to reject coins used to pay any amount in excess of the limits, and may take civil action against the payer to recover the debt."
- CNA
