Singapore legislation
Section 34
Section 34
Liability of defaulting subscriber who has already purchased chit fund amount
(1)
Where default in the payment of any contribution is made by a subscriber who has already purchased a chit fund amount, the subscriber and his or her guarantors are liable to make immediate payment to the chit fund company of the aggregate of all the contributions payable by him or her to the end of the chit fund period.
(2)
Upon receiving the contributions pursuant to subsection (1), the chit fund company must immediately deposit those contributions in any bank that is approved by the Authority.
(3)
Any money received under subsection (1) exceeding the amount required to cover the contribution of the defaulting subscriber must be returned forthwith by the chit fund company to the defaulting subscriber or his or her guarantors, as the case may be.
(4)
A chit fund company may charge interest on any money due under subsection (1) at the rate and by the method prescribed in the regulations made under this Act.