Central Provident Fund (Approved HDB-HUDC Housing Scheme) (Amendment) Regulations 2006

No. S 369

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Approved Hdb-hudc Housing Scheme) (Amendment) Regulations 2006

In exercise of the powers conferred by section 77(1)(h) of the Central Provident Fund Act, the Minister for Manpower, after consulting with the Central Provident Fund Board, hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Central Provident Fund (Approved HDB-HUDC Housing Scheme) (Amendment) Regulations 2006 and shall come into operation on 1st July 2006.

Amendment of regulation 2

2. Regulation 2(1) of the Central Provident Fund (Approved HDB-HUDC Housing Scheme) Regulations (Rg 14) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by inserting, immediately before the definition of “Approved HDB-HUDC Housing Scheme”, the following definitions:

“ “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;”;

(b)

by inserting, immediately after the definition of “approved mortgagee”, the following definition:

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

(c)

by inserting, immediately after the definition of “housing loan”, the following definition:

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

Deletion and substitution of regulation 4B

3. Regulation 4B of the principal Regulations is deleted and the following regulation substituted therefor:

“Use of money in special account for payment of housing loan and share in common property transferred by Housing and Development Board

4B.—(1) Where a member, as owner of a property, is liable to pay the monthly instalments of principal and interest towards a housing loan or a loan obtained by him for payment of his share in any common property transferred by the Housing and Development Board —

(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authorise the whole or part of the amount standing to the credit of the member in his special account to be withdrawn by him under regulation 4 or 6, as the case may be, for the payment of such monthly instalments; and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 under regulation 4 or 6, as the case may be, 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.”.

Deletion and substitution of regulations 8 and 9

4. Regulations 8 and 9 of the principal Regulations are deleted and the following regulations substituted therefor:

“Repayment of moneys on occurrence of certain events

8.—(1) Except as otherwise provided in these Regulations, all moneys withdrawn by a member under these Regulations (including any moneys lent to him under section 14A of the Act 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)

the property or any estate or interest therein is sold, transferred, assigned or otherwise disposed of —

(i)	by the member without the consent of the Board;
(ii)	by any person other than the member, including any mortgagee, with or without the consent of the Board; or
(iii)	pursuant to an order of court;

(b)

if any mortgage or encumbrance is created over the property in favour of any person without the consent of the Board;

(c)

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.

(2) All moneys withdrawn by a member under these Regulations (including any moneys lent to him under section 14A of the Act which have not been repaid) shall become due and payable to the Board on the occurrence of either of the following events:

(a)	the member withdraws his application for the purchase of the property; or
(b)	the agreement entered into by the member and any other person for the purchase of the property is rescinded.

No repayment of moneys in certain circumstances

9. Except as otherwise provided in regulations 11 and 12, all moneys withdrawn by a member under these Regulations (other than any moneys lent to him under section 14A of the Act 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.”.

Deletion of regulation 10

5. Regulation 10 of the principal Regulations is deleted.

Amendment of regulation 11

6. Regulation 11 of the principal Regulations is amended —

(a)

by inserting, immediately after the words “the Fund” in paragraph (1), the word “of”; and

(b)

by deleting paragraphs (2) to (13) and substituting the following paragraphs:

“(2) Subject to paragraphs (3), (4) and (13), where the member making the sale, transfer, assignment or disposal is below the age of 55 years at the time of the sale, transfer, assignment or disposal, he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(a)	the net proceeds of the sale, transfer, assignment or disposal;
(b)	all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(3) Notwithstanding paragraph (2) but subject to paragraphs (4) and (13), where the member making the sale, transfer, assignment or disposal —

(a)	is below the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(b)	sells, transfers, assigns or disposes of the property to an immediate family member without consideration or for a consideration below the market value of the property,

he shall, unless the Board otherwise directs, repay to his account in the Fund, in such manner as the Board may determine, all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(4) Notwithstanding paragraphs (2) and (3) but subject to paragraph (13), where the member making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court; and
(b)	is below the age of 55 years at the time of the sale, transfer, assignment or disposal,

he shall repay to his account in the Fund, in such manner as the Board may determine, such of the following amounts as may be required by the Board:

(i)	the net proceeds of the sale, transfer, assignment or disposal;
(ii)	all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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;
(iii)	all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase and withdrawn by him which have not been repaid);
(iv)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(5) Subject to paragraphs (6), (8) and (10) to (13), where the member making the sale, transfer, assignment or disposal —

(a)	has attained the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(b)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(6) Notwithstanding paragraph (5) but subject to paragraphs (11) and (13), where the member making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt before attaining the age of 55 years;
(b)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the higher of —

(A)

all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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; or

(B)

the aggregate of —

(I)	the sums, or any deficiency thereof, which he is required to set aside under section 15(6) of the Act, including any interest that would have accrued thereto; and
(II)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(7) Subject to paragraph (13), where the member making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt before attaining the age of 55 years;
(b)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is not required to set aside any sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)	the net proceeds of the sale, transfer, assignment or disposal;
(ii)	all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(8) Notwithstanding paragraph (5) but subject to paragraphs (12) and (13), where the member making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b)	remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(9) Subject to paragraph (13), where the member making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b)	remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is not required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)	the net proceeds of the sale, transfer, assignment or disposal;
(ii)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(10) Notwithstanding paragraph (5) but subject to paragraphs (11), (12) and (13), where the member making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court;
(b)	has attained the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(c)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(11) Notwithstanding paragraphs (5), (6) and (10) but subject to paragraph (13), where the member making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court;
(b)	was adjudicated a bankrupt before attaining the age of 55 years;
(c)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(d)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the higher of —

(A)

all moneys withdrawn by the member in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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; or

(B)

the aggregate of —

(I)	the sums, or any deficiency thereof, which he is required to set aside under section 15(6) of the Act, including any interest that would have accrued thereto; and
(II)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(12) Notwithstanding paragraphs (5), (8) and (10) but subject to paragraph (13), where the member making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court;
(b)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(c)	remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(d)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(13) Notwithstanding paragraphs (2) to (12), where the member making the sale, transfer, assignment or disposal —

(a)	withdraws the sum standing to his credit in the Fund under section 15(2)(d), (e) or (f) of the Act; or
(b)	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 to his account in the Fund, in such manner as the Board may determine, all moneys withdrawn by him under these Regulations in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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, or such part thereof as may be determined by the Board.

(13A) In this regulation, “net proceeds”, in relation to any property which is sold, transferred, assigned or disposed of, means any positive difference between —

(a)

the consideration for the sale, transfer, assignment or disposal of the property, or, if the Board so elects, the value of the property at the time of the sale, transfer, assignment or disposal as assessed by the Board; and

(b)

the aggregate of the following amounts paid in the following order:

(i)	any amount under a housing loan which has not been repaid; and
(ii)	any amount which, under any written law, is to be paid to any other person in priority to the Fund.”.

Amendment of regulation 12

7. Regulation 12 of the principal Regulations is amended —

(a)

by deleting paragraphs (2) to (7) and substituting the following paragraphs:

“(2) Where the member whose property has been acquired is below the age of 55 years at the time of the acquisition, he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(a)	the net proceeds of the acquisition;
(b)	all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(3) Subject to paragraphs (4), (6) and (7A), where the member whose property has been acquired —

(a)	has attained the age of 55 years at the time of the acquisition; and
(b)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the acquisition;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(4) Notwithstanding paragraph (3) but subject to paragraph (7A), where the member whose property has been acquired —

(a)	was adjudicated a bankrupt before attaining the age of 55 years;
(b)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the acquisition; and
(c)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the acquisition;

(ii)

the higher of —

(A)

(B)

the aggregate of —

(I)	the sums, or any deficiency thereof, which he is required to set aside under section 15(6) of the Act, including any interest that would have accrued thereto; and
(II)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(5) Subject to paragraph (7A), where the member whose property has been acquired —

(a)	was adjudicated a bankrupt before attaining the age of 55 years;
(b)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the acquisition; and
(c)	is not required to set aside any sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)	the net proceeds of the acquisition;
(ii)	all moneys withdrawn by him in connection with the purchase of the property (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(6) Notwithstanding paragraph (3) but subject to paragraph (7A), where the member whose property has been acquired —

(a)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b)	remains an undischarged bankrupt at the time of the acquisition; and
(c)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the acquisition;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(7) Subject to paragraph (7A), where the member whose property has been acquired —

(a)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b)	remains an undischarged bankrupt at the time of the acquisition; and
(c)	is not required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)	the net proceeds of the acquisition;
(ii)	any moneys lent to him under section 14A of the Act in connection with the purchase 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.

(7A) Notwithstanding paragraphs (2) to (7), where the member whose property has been acquired —

(a)	withdraws the amount standing to his credit in the Fund under section 15(2)(d), (e) or (f) of the Act; or
(b)	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,

(b)

by deleting the definition of “net proceeds of the acquisition” in paragraph (8) and substituting the following definition:

“ “net proceeds of the acquisition”, in relation to any property which has been acquired, means any positive difference between —

(a)

the amount of compensation paid upon the acquisition of the property; and

(b)

the aggregate of the following amounts paid in the following order:

(i)	any amount under a housing loan which has not been repaid; and
(ii)	any amount which, under any written law, is to be paid to any other person in priority to the Fund;”.

[G.N. Nos. S 597/98; S90/99; S 651/2001; S 219/2004; S 486/2004; S 360/2005]

Made this 20th day of June 2006.

LEO YIP

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MMC 19/74 V8; AG/LEG/SL/36/2005/24 Vol. 1]

(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).

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