—(1) Subject to subsection (10), every licensed housing developer shall open and keep an account (referred to in this Act as a Project Account) with a bank or finance company for each building project undertaken by the licensed housing developer.
(2) Where a building project has been approved by the competent authority under the Planning Act [Cap. 232] to be developed in phases, the Controller may, on the application of the licensed housing developer, allow the licensed housing developer to open and keep a Project Account under subsection (1) for each phase of such building project.
(3) The licensed housing developer shall pay into the Project Account of a building project the purchase moneys received by the licensed housing developer from the sale of the units in the building project and which are required by rules made under this Act to be paid into the Project Account.
(4) The licensed housing developer shall not withdraw any money from the Project Account except as authorised by rules made under this Act.
(5) Subject to subsection (6)(b), all moneys in the Project Account shall, notwithstanding any other written law to the contrary, be deemed not to form part of the property of the licensed housing developer in the event —
the licensed housing developer enters into any composition or arrangement with his creditors or has a receiving order or adjudication order made against him; or
the licensed housing developer, being a company, goes into voluntary or compulsory liquidation.
(6) Upon the happening of any of the events referred to in subsection (5) —
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all or any of the purposes for which moneys in the Project Account are authorised by rules made under this Act to be withdrawn; and
any money remaining in the Project Account, after all payments have been made pursuant to paragraph (a) and all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the building project have been fully discharged and fulfilled, 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.
(7) The Minister may, if he thinks necessary, appoint the Auditor-General or an approved company auditor under the Companies Act [Cap. 50] to investigate the books, accounts and transactions of a Project Account.
(8) The licensed housing developer shall pay the Minister all the expenses of and incidental to the investigation referred to in subsection (7).
(9) Any account opened by a licensed housing developer at a bank or finance company for the purpose of depositing purchase moneys received from purchasers in respect of a building project prior to 4th January 1985 shall be deemed to be a Project Account which has been opened pursuant to this section.
(10) This section shall not apply to any building project carried on by —
a licensed housing developer where all the units in the building project will not be offered for sale and purchase before the completion of the building project;
a licensed housing developer under any building agreement with the Urban Redevelopment Authority established under the Urban Redevelopment Authority Act [Cap. 340]; or
a licensed housing developer who has furnished to the Controller a banker’s guarantee of an amount equivalent to not less than 140% of the total cost of construction of the building project as certified by the architect in charge of the building project.
(11) Any licensed housing developer that contravenes or fails to comply with subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding one year or to both.
(12) For the purpose of this section —
“building project” means a housing development comprising units to be used for residential purposes or both residential and commercial purposes and includes, for the purposes of subsections (3) to (11), any phase of such housing development where such housing development has been approved by the competent authority under the Planning Act [Cap. 232] to be developed in phases;
“unit” means a horizontal stratum of any building or part thereof, whether such stratum is on one or more levels, and is intended for use in accordance with the provisions of any written law as a complete and separate unit for residential or commercial purpose.