Singapore legislation
Section 31
Section 31
Effect of failing to produce guarantors
(1)
If a subscriber purchasing the chit fund amount fails to produce the guarantors required under section 30 within 2 weeks of the auction, the chit fund company must either —
within 7 days of the expiry of those 2 weeks, declare the next highest bidder, who has not purchased the chit fund amount, to be purchaser of the chit fund amount according to that bidder’s bid on his or her producing the guarantors as required under section 30; or
within 2 weeks after the expiry of those 2 weeks, conduct a fresh sale of that chit fund amount and give not less than 7 days’ notice of the date to each of the subscribers then entitled to bid at the sale.
(2)
Where a subscriber is unable to produce the guarantors as required under section 30, the subscriber has the right to a refund of the actual amount of the earlier contributions paid by him or her to the chit fund company, without any deduction whatsoever.
(3)
The refund must be paid by the chit fund company within 3 weeks from the date of the auction.
(4)
In the event of a refund to a subscriber under subsection (2) by a chit fund company, the chit fund company is entitled to remove the name of that subscriber from the register of subscribers kept under section 37 and to substitute therefor the name of the new subscriber.