—(1) For the purposes of improving, managing and maintaining the common property of the residential and commercial property in the housing estates of the Board, a Town Council shall establish and maintain separate funds for improvements to and the management and maintenance of residential property and of commercial property; and such funds shall together constitute the Town Council Fund and shall, with all property which is or may become vested in the Town Council, be under the direction and control of the Town Council subject to the provisions of this Act.
(2) All moneys received by a Town Council by virtue of this Act or any other Act shall be paid into the Town Council Fund and all liabilities falling to be discharged by a Town Council shall be discharged out of that Fund.
(3) All moneys of the Town Council Fund that are not immediately required shall be paid into the appropriate fund established under subsection (1) to which the moneys relate and be applicable only to meet such expenses and liabilities as are properly attributable to that fund.
(4) A Town Council shall establish and maintain, as part of the Town Council Fund, separate sinking funds for improvements to and the management and maintenance of residential property and of commercial property.
(5) The Minister may, from time to time, prescribe the minimum amount of —
the conservancy and service charges which are paid, or are due and payable, or both, to a Town Council under section 39; and
any grants-in-aid made to a Town Council under section 42,
to be paid or credited into the sinking funds established for residential property and for commercial property.
(6) A Town Council shall not disburse any moneys —
from any sinking fund otherwise than for the purposes of meeting expenses or liabilities properly attributable to that sinking fund in respect of —
cyclical major repainting of any part of the common property of the residential property and commercial property in the housing estates of the Board within the Town;
renewal or replacement of any roofing system, water tanks, pumps and water supply system, electrical supply system, lightning protection system and lifts existing for common use or purposes of residents of the residential or commercial property in the housing estates of the Board within the Town;
lift upgrading works under Part IVA and major repairs and maintenance of the common property of the residential property and commercial property and boundary walls of the housing estates of the Board within the Town;
any other works which may be prescribed from time to time; or
from the Town Council Fund except for the purpose of —
exercising its powers or carrying out its duties and functions under this Act or any other Act; or
paying any fine imposed on the Town Council upon its conviction for any offence.
(6A) Any Town Council which contravenes subsection (6)(a) or (b) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000.
(6B) Where a Town Council is guilty of an offence under subsection (6A) and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of its chairman or secretary, or any person who was purporting to act in any such capacity, he, as well as the Town Council, shall also be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
(7) Notwithstanding anything in this section, a Town Council may, with the approval or on the direction of the Minister, disburse moneys from the Town Council Fund to repair and maintain any facility erected, installed or planted within the Town that is outside the common property of the residential and commercial property in the housing estates of the Board within the Town where the owner of the property on which the facility is erected consents.
(8) All payments to and out of the Town Council Fund shall be made to and by the secretary who shall be responsible therefor to the Town Council.
(9) Notwithstanding anything in this section, if at the end of any financial year of a Town Council there is shown a surplus of revenue over expenditure of any fund established by the Town Council under subsection (1), the Town Council may transfer from that fund an amount not exceeding the surplus to any other fund established by the Town Council under that subsection which is in deficit to make good the deficit in that fund.
(10) Notwithstanding anything in this section, upon the registration of the strata title plan in respect of any designated land, the Town Council responsible for the common property of the designated land shall as soon as practicable transfer to the management corporation for the designated land moneys standing to the credit of such of the funds (including sinking funds) of the Town Council Fund which relate to the designated land.
(11) Where an order is made under section 3(2) other than in consequence of any general election or by-election under the Parliamentary Elections Act (Cap. 218), and any residential or commercial property or any part of the common property thereof is transferred from the Town of one Town Council to the Town of another, the Town Councils may agree on the amount of the sinking fund relating to such property or such part to be transferred and paid to the Town Council to which the property or part is transferred; and in default of agreement the amount shall be determined by the Minister whose decision shall be final.
(12) In this section —
“commercial property” means any commercial property which does not form part of any residential property and includes any market and food centre;