Central Provident Fund (Non-residential Properties Scheme) Regulations

Central Provident Fund Act

(Chapter 36, Section 77(1)(h))

Rg 10

G.N. No. S 99/1986

REVISED EDITION 2006

(30th November 2006)

[1st May 1986]

Citation

1. These Regulations may be cited as the Central Provident Fund (Non-Residential Properties Scheme) Regulations.

Definitions

2.—(1) In these Regulations, unless the context otherwise requires —

“approved annuity” means an annuity for life, purchased from an insurer, which is approved by the Board;

“approved bank” means any bank approved by the Board;

“bank” has the same meaning as in the Banking Act (Cap. 19);

“insurer” means any person registered under the Insurance Act (Cap. 142) to carry on insurance business in Singapore;

“loan” means a loan —

(a)	obtained by a member to finance or re-finance in whole or in part the purchase of a property; or [S 705/2007 wef 01/01/2008]
(b)	to make full or periodic payment towards the repayment of a mortgage on any property inherited by a member if the mortgage was obtained solely for the purchase of that property, [S 705/2007 wef 01/01/2008]

including the payment of any costs, fees, stamp duties or other incidental expenses incurred in connection with paragraph (a) or (b);

“mortgage” includes any charge on any property for securing the repayment of any money lent to a person;

“property” means any building or part of a building or any flat which is permitted pursuant to any written law to be used for any commercial or industrial purpose or any such building or flat which is in the course of erection but does not include any temporary building;

“temporary building” means a building which is permitted by the Building Authority under the Building Control Act (Cap. 29) to be erected or to remain for a specified period at the expiration of which the building shall be demolished and includes a building erected, in the opinion of the Board, with materials either wholly or in part which are in the absence of special care, liable to rapid deterioration or are otherwise unsuitable for the erection of a permanent building.

(2) A reference in these Regulations to the purchase of a property includes a purchase made under an agreement for the sale and purchase of the property where title to the property will be conveyed, transferred or assigned to the purchaser on payment of the full purchase price.

Scheme applicable only if application made before 1st July 2006

3.—(1) Subject to paragraph (2), unless a member has, before 1st July 2006, made an application for the withdrawal of money under these Regulations in respect of a property, no money standing to the credit of that member in the Fund shall be withdrawn under these Regulations in respect of that property.

(2) Where —

(a)	a member who is a joint-owner of a property makes an application, on or after 1st July 2006, for the withdrawal of money under these Regulations in respect of that property;
(b)	any other joint-owner of that property has, before 1st July 2006, made an application for the withdrawal of money under these Regulations in respect of that property; and
(c)	the Board has authorised the whole or part of the amount standing to the credit of that other joint-owner in the Fund to be withdrawn under these Regulations in respect of that property,

the Board may, subject to such terms and conditions as it may impose, authorise the whole or part of the amount standing to the credit of that member in the Fund to be withdrawn under these Regulations in respect of that property.

Scheme applicable to property of certain tenures only

4. No money standing to the credit of a member in the Fund shall be withdrawn under these Regulations for the payment of the purchase price or part thereof of a property or for the repayment of any loan in full or in part unless he has acquired or will acquire with respect to the property —

(a)	an estate in fee simple or perpetuity; or
(b)	a leasehold estate having an unexpired term of at least 60 years at the date of his application for the withdrawal of money under these Regulations.

Application to withdraw moneys for purchase of property

5.—(1) A member who has purchased a property or has obtained a loan, whether before or after 1st May 1986, may submit an application to the Board to withdraw the whole or part of the amount standing to his credit in the Fund to be used for the payment of the purchase price or part thereof or for the repayment of any loan in full or in part, or for both.

[S 705/2007 wef 01/01/2008]

(2) An application under paragraph (1) may be approved by the Board subject to such terms and conditions as the Board may impose.

(3) A member who has obtained a loan shall not be entitled to make any withdrawals under these Regulations for the repayment of the loan unless the loan is a term loan or is granted on an overdraft basis and the repayment of the loan is secured by a mortgage on the property or on another property of which he is the owner or a joint-owner.

Application to withdraw moneys for payment of mortgaged property

6. Where a member has, whether before or after 1st May 1986, obtained a loan the repayment of which is secured by a mortgage on that property or another property of which he is the owner or a joint-owner and is required to pay instalments of principal and interest towards the loan either at monthly intervals or otherwise, the Board may, on application being made by the member and subject to such terms and conditions as the Board may impose, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn by him and used for the payment of those instalments.

Loan by Government to member

7.—(1) Where the Board has, on or after 1st March 1999, credited into the ordinary account of any member moneys lent by the Government to the member under any approved loan scheme under section 14A of the Act, the Board may —

(a)	on the application of the member; or
(b)	if it considers necessary,

and subject to such terms and conditions as it may impose, permit the member to withdraw such moneys for payment of the monthly instalments of principal and interest towards a loan.

(2) The total amount which a member may withdraw under paragraph (1) to pay such monthly instalments shall be determined by the Board.

Use of money in special account for payment of loan

8.—(1) Where a member, as owner of a property, is liable to pay the monthly instalments of principal and interest towards a loan —

(a)

if the liability to pay arises on or after 1st February 1999, the Board, with the approval of the Minister, may —

(i)	on the application of the member or if it considers necessary; and
(ii)	subject to such terms and conditions as it may impose,

authorise the whole or part of the amount standing to the credit of the member in his special account to be withdrawn by him for the payment of such monthly instalments; and

(b)

if the liability to pay arises on or after 1st July 2006, the Board may —

(i)	on the application of the member; and
(ii)	subject to such terms and conditions as it may impose,

authorise the whole or part of any amount standing to the credit of the member in his special account which had been transferred from his medisave account under section 13(6) of the Act to be withdrawn by him for the payment of such monthly instalments.

(2) The total amounts which a member may withdraw under paragraph (1)(a) and (b) to pay such monthly instalments shall be determined by the Board.

Power of Board to allow withdrawal for repayment of unsecured loan

9. Notwithstanding regulations 5, 6, 7 and 8, the Board may, in its discretion and subject to such terms and conditions as it may impose, allow a member to withdraw money under any of those regulations even if the loan obtained by the member is not secured by a mortgage on the property or any other property.

Maximum withdrawal limit under regulations 4, 5, 7 and 8

10. The total amount which may be withdrawn by a member to pay one or more loans under regulations 4, 5, 7 and 8 shall be determined by the Board but in no case shall such amount exceed 70% of the value of the property as assessed by the Board at the date of —

(a)	the signing of the agreement for the sale and purchase of the property; or [S 705/2007 wef 01/01/2008]
(b)	the inheritance of the property,

as the case may be.

Maximum withdrawal limit under these Regulations

11.—(1) The total amount which may be withdrawn by a member under these Regulations for any one or both of the purposes specified in paragraph (2) shall not exceed 70% of the value of the property as assessed by the Board at the date of —

(a)	the signing of the agreement for the sale and purchase of the property; or [S 705/2007 wef 01/01/2008]
(b)	the inheritance of the property,

as the case may be.

(2) The purposes referred to in paragraph (1) are —

(a)	to make full or partial payment towards the purchase of a property; or [S 705/2007 wef 01/01/2008]
(b)	to make periodic payments towards the repayment of a loan or to make full or partial repayment of a loan.

Mortgaged property

12.—(1) Where the property is subject to one or more subsisting mortgages, the Board may, as a condition for the withdrawal of money under these Regulations, require the member to satisfy the Board that the mortgagees have agreed —

(a)	that their rights under the mortgages shall rank pari passu with the rights of the Board in respect of all withdrawals authorised by the Board in such manner and on such terms as may be agreed upon between the Board and the mortgagees; and
(b)	to obtain the prior written approval of the Board before they sell, sub-mortgage, transfer their mortgage or apply to the Court for an order to foreclose the property.

(2) Where a property is purchased or owned by 2 or more persons, the Board may, as a condition for withdrawal of money by any one of them under these Regulations, require all the co-purchasers or co-owners of the property to give their written consent to extend any charge under section 21(1A) of the Act to all their respective estates or interests in the property.

[S 705/2007 wef 01/01/2008]

Withdrawal of moneys for payment of costs, etc.

13. Where an application for the withdrawal of money under these Regulations has been approved by the Board and the member is required to pay any costs, fees and expenses set out in section 21(1)(d) of the Act, the Board may, on the application of the member and subject to such terms and conditions as the Board may see fit to impose, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn and used for all or any of the aforesaid purposes.

Withdrawal of money by undischarged bankrupt

14.—(1) Notwithstanding the provisions of these Regulations, an undischarged bankrupt shall not be entitled to —

(a)	make an application to the Board to withdraw money under these Regulations; or
(b)	withdraw money under these Regulations except in accordance with paragraph (2).

(2) Where a member is adjudicated a bankrupt after he has obtained authorisation from the Board to withdraw money under these Regulations, the Board may, notwithstanding his bankruptcy, permit him to make or continue to make (as the case may be) the authorised withdrawals subject to his compliance with these Regulations, the Act and any other condition which the Board thinks fit to impose.

Maximum withdrawal limit for co-purchasers or co-owners

15.—(1) Where 2 or more co-purchasers or co-owners of a property each make an application for the withdrawal of money under regulation 5 or 6 or both, the total amount of money which may be withdrawn by them under either or both of those regulations shall not exceed the limit prescribed by regulation 10 or 11, as the case may be.

(2) Subject to paragraph (1), where a member has purchased or inherited a property jointly with one or more persons and the relationship between the co-owners of the property does not fall within any of the following categories:

(a)	husband and wife;
(b)	parent and child;
(c)	brother and brother, sister and sister or brother and sister;
(d)	grandparent, parent and child;
(e)	grandparent and grandchild,

the member shall be entitled to withdraw such amount of money as may be determined by the Board.

Government valuer to assess property

16.—(1) For the purpose of assessing the value of any property under these Regulations, the Board may appoint a Government valuer or a licensed valuer and the expenses of any such valuation shall be borne by the member concerned.

(2) Where a member is required to pay the expenses of any valuation under paragraph (1), the Board may, on the application of the member, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn and used for the payment of such expenses.

Payment by Board to vendor, etc.

17. All moneys withdrawn from the Fund under regulation 5, 6, 7, 8 or 13 shall be paid by the Board to the vendor, mortgagee, chargee or such person as the Board thinks fit to receive such moneys.

No disposal of property without Board’s permission

18. As long as any money withdrawn by a member remains payable to the Fund under regulation 21, the member shall not sell, transfer, assign or otherwise dispose of the property or any of his estate or interest therein without the prior written permission of the Board.

Conditions for disposal of property

19.—(1) The Board may, in its discretion and subject to such terms and conditions as it may impose, permit a member who has withdrawn moneys under these Regulations in respect of a property (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) to sell, transfer, assign or otherwise dispose of the property or any of his estate or interest therein to any person —

(a)

if the Board is satisfied that adequate arrangements have been made to secure the repayment into the member’s account in the Fund of —

(i)	all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto if the withdrawal had not been made; or
(ii)	the net proceeds of the sale, transfer, assignment or disposal, as the case may be,

whichever is the less; or

(b)

where the member —

(i)	withdraws the sum standing to his credit in the Fund under section 15 (2)(d), (e) or (f) of the Act; or
(ii)	withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement account, or surrenders his approved annuity from an insurer, under section 15 (7A)(a), (b) or (ba) of the Act,

if the member repays into his account in the Fund all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may be determined by the Board.

(2) Where a member who has withdrawn money under these Regulations in respect of a property —

(a)

sells, transfers, assigns or otherwise disposes of the property or his estate or interest therein with the permission of the Board under paragraph (1)(a); and

(b)

either —

(i)	withdraws the sum standing to his credit in the Fund under section 15 (2)(d), (e) or (f) of the Act; or
(ii)	withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement account, or surrenders his approved annuity from an insurer, under section 15 (7A)(a), (b) or (ba) of the Act,

he shall repay into his account in the Fund all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may be determined by the Board.

Prohibition on mortgage

20.—(1) As long as any money withdrawn under these Regulations remains payable to the Fund under regulation 21, the member shall not mortgage or in any way encumber the property in respect of which the withdrawal has been made without the prior written permission of the Board.

(2) In granting any permission under paragraph (1), the Board may —

(a)	require the member to make adequate arrangements to secure the repayment into the member’s account in the Fund of all moneys withdrawn by him and of such interest that would have accrued thereto if the withdrawal had not been made; or
(b)	impose such other terms and conditions as the Board may think fit.

Repayment of moneys withdrawn

21.—(1) Subject to paragraphs (2), (3) and (4), all moneys withdrawn by a member under these Regulations in respect of a property (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) together with any interest that would have accrued thereto if the withdrawal had not been made shall become due and payable to the Board on the occurrence of any of the following events:

(a)	if the property or any estate or interest therein is sold, transferred, assigned or otherwise disposed of by him or a co-owner or co-purchaser without the consent of the Board;
(b)	if the property or any estate or interest therein is sold, transferred, assigned or otherwise disposed of by any mortgagee or by any other person with or without the consent of the Board;
(c)	if any mortgage or encumbrance is created over the property without the consent of the Board;
(d)	if the member has committed a breach of any of the terms and conditions imposed by the Board in connection with the withdrawal of moneys under these Regulations;
(e)	if the property or any estate or interest therein is acquired under the Land Acquisition Act (Cap. 152) or any other written law.

(2) Upon the happening of any of the events mentioned in paragraph (1)(b) or (e), the member shall repay to the Board the amount agreed between the Board, the member and the mortgagee in respect of such sale or disposition of the property by the mortgagee or by any other person, or the amount of any compensation received by the member under the Land Acquisition Act or under any other written law, as the case may be.

(3) Subject to paragraph (4), all moneys withdrawn by a member under these Regulations in respect of a property (other than any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid), together with any interest that would have accrued thereto if the withdrawal had not been made, shall cease to be payable to the Board —

(a)	on the death of the member; or
(b)	when the member is entitled to withdraw the amount standing to his credit in the Fund under section 15 (2), (3) or (4) of the Act and has complied with the requirements for such withdrawal.

(4) Subject to paragraph (2), where —

(a)

any event mentioned in paragraph (1) occurs; and

(b)

the member —

(i)	withdraws the sum standing to his credit in the Fund under section 15 (2)(d), (e) or (f) of the Act; or
(ii)	withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement account, or surrenders his approved annuity from an insurer, under section 15 (7A)(a), (b) or (ba) of the Act,

Member liable for costs, fees, etc., of application

22. A member who has made an application for the withdrawal of money under these Regulations shall be liable to pay any costs, fees or other expenses in connection with the processing of the application which shall be of such amount as may be determined by the Board.

Application in manner and with information required by Board

23.—(1) An application by a member for the withdrawal of money under these Regulations shall be made in writing to the Board in such manner as the Board may direct.

(2) Any member making the application referred to in paragraph (1) shall furnish to the Board such information, documents and guarantees as the Board may require.

[G.N. Nos.S99/86; S479/92; S87/99; S 562/99; S107/2001; S183/2005; S 359/2005; S366/2006]

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