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