—(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with any regulations made under section 77, a member of the Fund had or has before, on or after 1st January 2003 withdrawn any money standing to his credit in the Fund —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 or acquisition 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 or acquisition of an HDB flat;
to pay any improvement contribution due to the Housing and Development Board in respect of upgrading works carried out on an HDB flat under Part IVA of the Housing and Development Act (Cap. 129), or any improvement contribution due to a Town Council in respect of lift upgrading works carried out in relation to an HDB flat under Part IVA of the Town Councils Act (Cap. 329A), including the payment of costs, fees or other incidental expenses arising from such works; or
to pay any costs, fees or other expenses incurred —
for the purchase or acquisition of an HDB flat;
to change the manner of holding of an HDB flat from a joint tenancy to a tenancy in common, or vice versa;
for the transfer of any part (but not the whole) of the member’s estate or interest in an HDB flat to any other person;
for obtaining a loan to finance or re-finance any purchase or acquisition referred to in sub-paragraph (i); 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immediately upon any such withdrawal, be a charge constituted on that HDB flat to secure the repayment of the money withdrawn from the Fund including the whole or such part, as the Board may determine, of the interest that would have been payable thereon if the withdrawal had not been made.
(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 —
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 or acquisition 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.
(5) If —
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;
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 to the Fund; or
are no longer required by any regulations made under section 77(1) to be repaid to the Fund.
(11A) Without prejudice to subsection (11), where there is a charge constituted under subsection (1) on an HDB flat in respect of which a member has withdrawn any money standing to his credit in the Fund for any purpose referred to in subsection (1), and the Board is satisfied of the occurrence of any event prescribed in any regulations made under section 77(1) for the purposes of this subsection, the charge shall, on the application of the member or any other person having an interest in the HDB flat, cease to be in force if the Board approves the application.
(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.
(14) [Deleted by Act 18/2009 wef 20/08/2009][36/2002 wef 01/01/2003]