Section 14
Licensed housing developer to open and maintain project account
of Housing Developers (Control and Licensing) Act
(1)
Subject to subsection (9), every licensed housing developer shall open and maintain a project account with a bank for each housing development undertaken by him.
(2)
Where a housing development is to be developed in phases, the licensed housing developer shall open and maintain project accounts for each phase of such housing development.
(3)
Before proceeding with any housing development or any phase of any housing development, the licensed housing developer shall deposit into the project account a sum equivalent to 10 per cent of the amount required to complete all units of housing accommodation included within such housing development or such other lesser sum as the Board may determine, and shall furnish the Board with documentary evidence of such deposit having been made.
(4)
The licensed housing developer shall pay into the project account of a housing development the purchase moneys received by him from the sale of housing units in the housing development and such other sums of money which are required by any regulations under this Act to be paid into the project account.
(5)
The licensed housing developer shall not withdraw any money from the project account except as authorised by regulations made under this
Act.
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(6)
Subject to subsection (7)(b), all moneys in the project account shall, notwithstanding any other written law, be deemed not to form part of the property of the licensed housing developer if —
(a)
he enters into any composition or scheme of arrangement with his creditors or has a receiving order or an adjudication order made against him; or
(b)
being a body corporate, he goes into voluntary winding up or into winding up by the Court.
(7)
Upon the happening of any of the events referred to in subsection (6)(a) or (b) —
(a)
the moneys in the project account shall vest in the Official
Receiver, trustee in bankruptcy or liquidator, as the case may be, to be applied for all or any of the purposes for which moneys in the project account are authorised by regulations made under this Act to be withdrawn; and
(b)
any money remaining in the project account, after all payments have been made pursuant to paragraph (a) of this subsection and all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the housing development have been fully discharged, shall be held by the Official
Receiver, trustee in bankruptcy or liquidator, as the case may be, as money belonging to the licensed housing developer to be applied in accordance with the law relating to bankruptcy or the winding up of companies.
(8)
Notwithstanding any other written law, all moneys in the project account shall not be garnished until all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the housing development have been fully discharged.
(9)
This section does not apply to any housing development carried on by a licensed housing developer where all the housing units in the housing development will not be offered for sale and purchase before the completion of the housing development.
(10)
Any licensed housing developer who contravenes or fails to comply with subsection (1), (2), (3) or (5) is guilty of an offence and liable
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on conviction to a fine not exceeding $10,000, imprisonment for a term not exceeding 3 years or both.