Singapore legislation
Section 40
Section 40
Contributions by subsidiary proprietors
(1)
A management corporation may levy the contributions determined by it in accordance with section 39(1) or (2) or 41, and the contributions mentioned in section 39(3), by serving on the subsidiary proprietors written notice of the contributions payable by them in respect of their respective lots.
(2)
Subject to sections 41 and 108(3), the contributions levied by a management corporation in respect of each lot are payable by the subsidiary proprietors in shares proportional to the share value of their respective lots.
(3)
If, at the time a person becomes a subsidiary proprietor of a lot, another person is liable in respect of the lot to pay a contribution levied under this section or section 41, the subsidiary proprietor shall, subject to section 47(3), be jointly and severally liable with the other person for the payment of the contribution and interest on the contribution.
(4)
A person who has ceased to be a subsidiary proprietor of the lot is only liable to pay the contribution levied under this section or section 41 and which was unpaid at the time the person ceased to be a subsidiary proprietor, plus the interest accruing on the unpaid contribution until the time it is paid.
(5)
Without affecting the liability of the subsidiary proprietor of a lot in respect of any contribution levied under this section or section 41, where a mortgagee is in possession (whether personally or by any other person) of a lot, the mortgagee shall be jointly and severally liable with the subsidiary proprietor of the lot of which the mortgagee is in possession —
for any contribution to a management fund or sinking fund by regular periodic instalments;
for any other contributions if written notice of the levy of the contribution has been served on the mortgagee; and
for interest on any of those contributions.
(6)
Any contribution levied under this section or section 41 —
becomes due and payable to the management corporation without any deduction whatsoever in accordance with the decision of the management corporation to make the levy;
if not paid on or before the 30th day after it becomes due and payable, bears interest at the rate determined by the management corporation and the interest accrues from the expiry of 30 days after the date when the contribution becomes due and payable unless the management corporation determines in a general meeting (either generally or in a particular case) that any unpaid contribution bears no interest; and
may, together with the interest due, be recovered as a debt by the management corporation in any court of competent jurisdiction.
(7)
Any interest paid under subsection (6) forms part of the fund to which the contribution belongs.
(8)
[Deleted by Act 33 of 2018]
(9)
Where any contribution or interest thereon levied under subsection (6) is not paid on or before the 30th day after it becomes due and payable, the management corporation may serve a written demand on the subsidiary proprietor of the lot in respect of which the contribution is levied.
(10)
A subsidiary proprietor who fails to pay any contribution or interest due and owing to a management corporation before the 14th day after the date of service of any written demand mentioned in subsection (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part of a day during which the contribution or interest or both remain unpaid after conviction.
(11)
The court before which a conviction for an offence under subsection (10) is had may, in addition to such fine, order the subsidiary proprietor to pay to the management corporation the amount of any contribution together with any interest thereon or any interest certified by the management corporation to be due from the subsidiary proprietor at the date of the subsidiary proprietor’s conviction, and such amount must be recovered according to any written law for the time being in force for the recovery of fines.
(12)
In this section, “subsidiary proprietor” includes —
a mortgagee in possession and the person for the time being receiving the rent of the lot, whether as agent or trustee or as receiver, or who would receive the rent if the lot were let to a tenant; and
the person whose name is included in the Valuation List mentioned in the Property Tax Act 1960 as the owner of the lot for the purposes of that Act.