No. S 694
Central Provident Fund Act
(Chapter 36)
Central Provident Fund (Approved Housing Schemes) (Amendment) Regulations 2002
In exercise of the powers conferred by section 77 (1)(h) and (qa) 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 Housing Schemes) (Amendment) Regulations 2002 and shall come into operation on 1st January 2003.
Amendment of regulation 6
2.  Regulation 6 of the Central Provident Fund (Approved Housing Schemes) Regulations (Rg 12) (referred to in these Regulations as the principal Regulations) is amended —
(a)by deleting the words “to the Housing and Development Board towards the repayment of the housing loan” in paragraph (1) and substituting the words “to a lender under a mortgage loan of a house or flat”; and
(b)by deleting the words “towards the repayment of the housing loan” in paragraph (2) and substituting the words “under a mortgage loan of a house or flat”.
Amendment of regulation 13
3.  Regulation 13 of the principal Regulations is amended —
(a)by deleting the words “in connection with the purchase” in the following provisions and substituting in each case the words “under these Regulations in respect”:
Paragraphs (2)(b), (3), (5) (ii) (A) and (B) (II), (6) (ii), (7) (ii) (B), (8) (ii), (9) (ii), (iii) and (iv), (11) (ii) (A) and (B) (II) and (12) (ii) (B);
(b)by deleting the words “such purchase” in the following provisions and substituting in each case the words “the purchase of that house or flat”:
Paragraphs (2)(b), (3), (5) (ii) (A), (6) (ii), (9) (ii) and (iii) and (11) (ii) (A); and
(c)by inserting, immediately after the word “proceeds” in the regulation heading, the words “of house or flat mortgaged to Housing and Development Board”.
Amendment of regulation 14
4.  Regulation 14 of the principal Regulations is amended —
(a)by deleting paragraph (1) and substituting the following paragraph:
“(1)  Where a member has withdrawn any moneys under these Regulations and the house or flat in respect of which the withdrawal was made is compulsorily acquired under —
(a)section 56 of the Housing and Development Act (Cap. 129);
(b)section 46 of the Jurong Town Corporation Act (Cap. 150); or
(c)any other written law,
the member shall repay into his account in the Fund the amount provided in this regulation or such other amount as the Board may allow, taking into consideration the circumstances of each case.”;
(b)by deleting the words “in connection with the purchase” in the following provisions and substituting in each case the words “under these Regulations in respect”:
Paragraphs (2)(b), (4) (ii) (A) and (B) (II), (5) (ii), (6) (ii) (B) and (7) (ii);
(c)by deleting the words “such purchase” in the following provisions and substituting in each case the words “the purchase of that house or flat”:
Paragraphs (2)(b), (4) (ii) (A) and (5) (ii);
(d)by deleting the definition of “time of the acquisition” in paragraph (8) and substituting the following definition:
“ “time of the acquisition” refers to the date of issue of the notice of intention to acquire under —
(a)section 56(3) of the Housing and Development Act (Cap. 129);
(b)section 46(3) of the Jurong Town Corporation Act (Cap. 150); or
(c)any other written law,
as the case may be.”; and
(e)by inserting, immediately after the word “proceeds” in the regulation heading, the words “of house or flat mortgaged to Housing and Development Board”.
New regulation 14A
5.  The principal Regulations are amended by inserting, immediately after regulation 14, the following regulation:
“Disposition of proceeds of house or flat mortgaged to private lender
14A.—(1)  This regulation shall apply to any house or flat which has been mortgaged by a member to a private lender as security for a private housing loan, whether or not the mortgage is discharged at the time of the sale, transfer, assignment, disposal or compulsory acquisition, as the case may be, of that house or flat.
(2)  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 to sell, transfer, assign or otherwise dispose of any house or flat or any of his estate or interest therein in respect of which such withdrawal has been made, if the Board is satisfied that adequate arrangements have been made to cause the proceeds of the sale, transfer, assignment or disposal to be applied in the following order of priority:
(a)firstly, to discharge any statutory rights and charges of any public authority under any written law over the house or flat;
(b)secondly, to discharge any encumbrance registered or notified prior to the date of constitution of the Board’s charge over the house or flat;
(c)thirdly, to pay the Board and the private lender in the order of priority set out in paragraph (4), provided that the total sum paid to the Board shall not exceed the maximum sum as determined in accordance with paragraph (5); and
(d)fourthly, to pay all other parties to whom moneys are owed by the member in respect of the house or flat, according to the order of priority set out in the Housing and Development (Mortgage to Lender) Rules 2002 (G.N. No. S 650/2002).
(3)  Where a member has withdrawn moneys under these Regulations in respect of a house or flat and that house or flat is compulsorily acquired under —
(a)section 56 of the Housing and Development Act (Cap. 129);
(b)section 46 of the Jurong Town Corporation Act (Cap. 150); or
(c)any other written law,
the member shall cause the compensation paid upon the acquisition to be distributed according to the order of priority set out in paragraph (2).
(4)  For the purpose of paragraph (2)(c), the proceeds of the sale, transfer, assignment or disposal shall be paid to the Board and the private lender in the following order of priority:
(a)firstly, in payment to the private lender of an amount equivalent to the amount outstanding under the private housing loan as at the relevant date, less all payments made by the member after the relevant date to the private lender towards the private housing loan;
(b)secondly, in payment to the Board of the total of —
(i)all moneys withdrawn by the member under these Regulations in respect of the house or flat (excluding the sums referred to in sub-paragraph (ii)) up to 100% of the ascribed value; and
(ii)all moneys withdrawn by the member under these Regulations to pay —
(A)any improvement contribution; or
(B)any costs, fees or other expenses incurred in connection with the withdrawal of moneys under these Regulations or the purchase and mortgage of the house or flat;
(c)thirdly, in payment to —
(i)the Board of —
(A)the balance of the total sum withdrawn by the member under these Regulations in respect of the house or flat, which has not been paid to the Board under sub-paragraph (b); and
(B)all interest that would have accrued on the total sum withdrawn if the withdrawal had not been made; and
(ii)the private lender of any unpaid interest accruing after the relevant date under the private housing loan,
all payments to rank equally without preference; and
(d)fourthly, in payment to —
(i)the Board of all costs and expenses incurred by it in connection with its charge which it is entitled to claim from the member under these Regulations and the Act; and
(ii)the private lender of all costs and expenses incurred by it in connection with the mortgage which it is entitled to claim from the member under the private housing loan,
both payments to rank equally without preference.
(5)  For the purpose of paragraph (2)(c), the maximum sum shall be determined as follows:
(a)subject to sub-paragraphs (b) and (c), where the member is below the age of 55 years at the time of the relevant transaction, the maximum sum shall be an amount equivalent to all moneys withdrawn by the member under these Regulations in respect of the house or flat (including any outstanding loan granted to him under section 14A of the Act in connection with the purchase of that house or flat) together with any interest that would have accrued thereto if the withdrawal had not been made;
(b)subject to sub-paragraph (c), where the member is below the age of 55 years at the time of the relevant transaction but the relevant transaction is entered into with an immediate family member of that member for no consideration or a consideration below the market value of the house or flat, the maximum sum shall be the amount referred to in sub-paragraph (a) unless the Board directs that the interest referred to therein or any part thereof shall be excluded;
(c)where the member is below the age of 55 years at the time of the relevant transaction but the relevant transaction is entered into pursuant to an order of court, the maximum sum shall be any of the following amounts as directed by the Board:
(i)all moneys withdrawn by the member under these Regulations in respect of the house or flat (including any outstanding loan granted to him under section 14A of the Act in connection with the purchase of that house or flat) together with any interest that would have accrued thereto if the withdrawal had not been made;
(ii)the sum referred to in sub-paragraph (i) less the interest (or any part thereof) referred to therein; or
(iii)any outstanding loan granted to the member under section 14A of the Act in connection with the purchase of the house or flat;
(d)where the member has attained the age of 55 years and is not a bankrupt at the time of the relevant transaction, and is required to set aside a minimum sum under section 15(6) of the Act, the maximum sum shall be (regardless of whether the relevant transaction is entered into pursuant to an order of court) 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;
(e)where the member has attained the age of 55 years and is a bankrupt at the time of the relevant transaction, was adjudicated a bankrupt before he attained the age of 55 years, and is required to set aside a minimum sum under section 15(6) of the Act, the maximum sum shall be (regardless of whether the relevant transaction is entered into pursuant to an order of court) the higher of the following amounts:
(i)all moneys withdrawn by the member under these Regulations in respect of the house or flat (including any outstanding loan granted to him under section 14A of the Act in connection with the purchase of that house or flat); or
(ii)the aggregate of —
(A)the amount of the minimum sum or any deficiency thereof which the member is required to set aside, including any interest that would have accrued thereto; and
(B)any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in connection with the purchase of the house or flat, together with any interest that would have accrued thereto if the withdrawal had not been made;
(f)where the member has attained the age of 55 years and is a bankrupt at the time of the relevant transaction, was adjudicated a bankrupt before he attained the age of 55 years, but is not required to set aside a minimum sum under section 15(6) of the Act, the maximum sum shall be (regardless of whether the relevant transaction is entered into pursuant to an order of court) an amount equivalent to all moneys withdrawn by the member under these Regulations in respect of the house or flat (including any outstanding loan granted to him under section 14A of the Act in connection with the purchase of that house or flat) together with any interest that would have accrued thereto if the withdrawal had not been made;
(g)where the member has attained the age of 55 years and is a bankrupt at the time of the relevant transaction, was adjudicated a bankrupt after or when he attained the age of 55 years, and is required to set aside a minimum sum under section 15(6) of the Act, the maximum sum shall be (regardless of whether the relevant transaction is entered into pursuant to an order of court) the aggregate of —
(i)the amount of the minimum sum or any deficiency thereof which the member is required to set aside, including any interest that would have accrued thereto; and
(ii)any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in connection with the purchase of the house or flat, together with any interest that would have accrued thereto if the withdrawal had not been made; and
(h)where the member has attained the age of 55 years and is a bankrupt at the time of the relevant transaction, was adjudicated a bankrupt after or when he attained the age of 55 years, but is not required to set aside a minimum sum under section 15(6) of the Act, the maximum sum shall be (regardless of whether the relevant transaction is entered into pursuant to an order of court) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in connection with the purchase of the house or flat, together with any interest that would have accrued thereto if the withdrawal had not been made.
(6)  For the purposes of section 21B (3)(d) and (9)(e) of the Act, the Board’s charge and the private lender’s mortgage of the house or flat shall rank according to the order of priority set out in paragraph (4), provided that the total sum paid to the Board shall not exceed the maximum sum as determined in accordance with paragraph (5).
(7)  For the purpose of section 21B(9)(f) of the Act, the payment of moneys shall be in the order of priority set out in the Housing and Development (Mortgage to Lender) Rules 2002 (G.N. No. S 650/2002).
(8)  Regulations 13 and 14 shall not apply to any house or flat to which this regulation applies.
(9)  In this regulation —
“ascribed value” means the value ascribed to the house or flat by the Board for the purposes of these Regulations;
“improvement contribution” means the improvement contribution payable to the Housing and Development Board under the Housing and Development Act (Cap. 129);
“private housing loan”, in relation to a house or flat, means a loan granted by a private lender to a member solely to finance or re-finance the purchase of the house or flat;
“private lender” means —
(a)any bank licensed under the Banking Act (Cap. 19);
(b)any finance company licensed under the Finance Companies Act (Cap. 108);
(c)any direct insurer registered under the Insurance Act (Cap.142);
(d)any merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap.186); or
(e)in relation to a member, any person which the Housing and Development Board has approved as a mortgagee of that member’s house or flat;
“relevant date” means the date —
(a)when there is a default in payment of the private housing loan which has not been rectified by the member;
(b)of redemption of the private housing loan; or
(c)on which a notice of intention to compulsorily acquire the house or flat under any written law is served on the member,
whichever is the earliest;
“relevant transaction” means the sale, transfer, assignment, disposal or compulsory acquisition of the house or flat, as the case may be.”.
Amendment of regulation 18
6.  The principal Regulations are amended by renumbering regulation 18 as paragraph (1) of that regulation and by inserting immediately thereafter the following paragraph:
“(2)  Where a member is adjudicated a bankrupt after he has obtained authorisation from the Board under these Regulations to withdraw the whole or part of the amount standing to his credit in the Fund, 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.”.
New regulation 20
7.  The principal Regulations are amended by inserting, immediately after regulation 19, the following regulation:
“Fees
20.—(1)  Subject to paragraphs (3) and (4), the fees levied by the Board for rendering services to facilitate withdrawals from the Fund which are secured by a charge constituted on a house or flat under section 21B of the Act shall be —
(a) for arranging the disbursement of moneys withdrawn from the Fund
 
a fee determined by the Board after consultation with its solicitors
(b) for arranging the repayment of moneys withdrawn from the Fund and confirming the discharge of the charge earlier constituted
 
a fee determined by the Board after consultation with its solicitors.
(2)  Regulation 8 shall apply to the fee referred to in paragraph (1)(a).
(3)  Where the Housing and Development Board, by its duly authorised officer, acts for the member making the withdrawals, the fee referred to in paragraph (1)(a) may be waived by the Board.
(4)  Where the Housing and Development Board, by its duly authorised officer, acts for the member repaying the moneys withdrawn from the Fund or the other party to whom that member is selling his house or flat, the fee referred to in paragraph (1)(b) may be waived by the Board.”.
[G.N. Nos. S 88/99; S649/2001]

Made this 30th day of December 2002.

YONG YING-I
Permanent Secretary,
Ministry of Manpower,
Singapore.
[[MMC 29/38 T1/02 V2; AG/LEG/SL/36/2002/2 Vol. 2].]
(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).
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