7. The principal Act is amended by inserting, immediately after section 21A, the following section:
—(1) Where in accordance with any regulations made under section 77, a member of the Fund had or has before, on or after 1st January 2003 withdrawn any money standing to his credit in the Fund —
to make full or partial payment towards the purchase of an HDB flat;
to repay or to make periodic payments towards the repayment of any loan taken by the member to finance or re-finance the purchase of an HDB flat;
to pay any costs, fees or other expenses incurred —
for the purchase of an HDB flat;
for obtaining a loan to finance or re-finance such purchase; and
in connection with withdrawals of any money from the Fund,
there shall, immediately upon any such withdrawal, be a charge constituted on that HDB flat to secure the repayment of the money withdrawn from the Fund including the interest that would have accrued thereto if the withdrawal had not been made and to secure the payment of the minimum sum into the member’s retirement account.
(2) Upon the constitution of the charge on an HDB flat under subsection (1), the Board shall have the power of sale and all other powers relating or incidental thereto to sell and effectually transfer the title to the HDB flat to any purchaser as if the Board were a registered mortgagee notwithstanding that the charge is not registered under the Land Titles Act (Cap. 157).
(3) Any charge constituted on an HDB flat under subsection (1) shall be —
(a) subject to all statutory rights and charges of any public authority over the HDB flat;
subject to any resale levy imposed by the Housing and Development Board in respect of the HDB flat except where the person on whom the resale levy is imposed has obtained a loan, whether redeemed or not, from any person other than the Housing and Development Board to finance the purchase of the HDB flat;
subject to, in the absence of any agreement giving priority to the Board, all encumbrances registered or notified prior to the date of the constitution of the charge; and
subject to, rank in priority to, or rank equally without preference with, such other encumbrances as may be specified in regulations made under section 77.
(4) The repayment of the minimum sum to the Board, if it is secured by a charge on the HDB flat under subsection (1), shall rank after the claims of a mortgagee or chargee other than the Board before the date the member is required to deposit a prescribed sum under section 15(6).
(5) If —
moneys secured by any charge constituted on an HDB flat under subsection (1) become due and payable to the Board under any regulations made under section 77; and
such moneys or any part thereof is not paid on the expiry of the period of 60 days from the date they become due and payable,
the Board may, with the prior written approval of the Housing and Development Board, by notice of sale (to be served or published in the manner to be specified in regulations made under section 77) declare its intention of selling the HDB flat.
(6) If, on the expiry of the period of 90 days from the date of the notice of sale, the moneys secured by the charge or any part thereof has not been paid to the Board, the Board may sell the HDB flat.
(7) Where the Board has sold any HDB flat under subsection (6), neither the purchaser of the HDB flat nor the Registrar shall be concerned to inquire into the regularity or validity of the sale or transfer.
(8) For the purpose of registration of a transfer of any HDB flat sold under subsection (6), the Registrar may dispense with the production of the duplicate lease of the HDB flat or the duplicate subsidiary certificate of title in respect of the HDB flat, as the case may be.
(9) The moneys received by the Board in exercise of its power of sale under subsection (6) shall be held by the Board in trust to be applied —
firstly, to discharge any right or charge specified in subsection (3)(a);
secondly, to pay any resale levy specified in subsection (3)(b);
thirdly, to discharge any encumbrance specified in subsection (3)(c);
fourthly, in payment of all costs and expenses properly incurred by the Board as incident to the sale or attempted sale, or otherwise;
fifthly, in payment to the Board of all moneys secured by the charge and in payment to any other party of all moneys to discharge any encumbrance specified in regulations made under section 77 for the purpose of subsection (3)(d), in the order of priority specified in the regulations; and
finally, in payment of moneys in the order of priority specified in regulations made under section 77.
(10) Notwithstanding section 80 of the Land Titles Act (Cap. 157), where further withdrawals from the Fund are authorised by the Board when a charge constituted on an HDB flat under subsection (1) is subsisting, all such withdrawals shall rank in priority to any other claims over the HDB flat as if the withdrawals were made at the date of the constitution of that charge.
(11) Any charge constituted under subsection (1) shall continue in force until —
all moneys secured by the charge have been repaid or are no longer required by any regulations made under section 77 to be repaid to the Fund; or
the Board is satisfied of the occurrence of any of the events mentioned in section 15(15)(e).
(12) This section shall not apply to —
any HDB flat in respect of which a charge in favour of the Board has been registered or notified in the appropriate register maintained by the Registrar under the Land Titles Act (Cap. 157);
any HDB flat designated by the Housing and Development Board as an HUDC Phase III or IV flat; or
any HDB flat or class of HDB flats which the Minister may, by notification in the Gazette, specify.
(13) Sections 21 and 21A shall not apply to any HDB flat to which this section applies.
(14) In this section —
“HDB flat” means any flat, house or other building sold under Part IV of the Housing and Development Act (Cap. 129) which has been acquired by the present owner thereof whether directly from the Housing and Development Board or otherwise;
“Housing and Development Board” means the Housing and Development Board constituted under the Housing and Development Act.”.