Singapore legislation
Clause 31
Clause 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 of this Act within two weeks of the auction, the chit fund company shall either —
within seven days of the expiration of the said two weeks declare the next highest bidder, who has not purchased the chit fund amount, to be purchaser of the chit fund amount according to his bid on his producing the guarantors as required under section 30 of this Act; or
within two weeks after the expiration of the said two weeks conduct a fresh sale of that chit fund amount and give not less than seven days’ notice of the date to each of the subscriber then entitled to bid at the sale.
(2)
Where a subscriber is unable to produce the guarantors as required under section 30 of this Act, the subscriber shall have the right to a refund of the actual amount of the earlier contributions paid by him to the chit fund company, without any deduction whatsoever. The refund shall be paid by the chit fund company within three weeks from the date of the auction.
(3)
In the event of a refund to a subscriber under subsection (2) of this section by a chit fund company, the chit fund company shall be entitled to remove the name of that subscriber from the register of subscribers kept under section 37 of this Act and to substitute therefor the name of the new subscriber.