Chit Funds Act 1971 · 2020 Revised Edition · Part 4 · Chit Funds — General Provisions
34. Liability of defaulting subscriber who has already purchased chit fund amount
Feedback & supportWhere 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.
contribution
“contribution” means the sum of money payable periodically by each subscriber under the agreement;
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.
chit fund company
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act;
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.
subscriber
“subscriber” includes any person who has agreed to participate in a chit fund or has signed the agreement in token thereof.
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.
interest
“interest” means that amount of money which the subscriber agrees to forego in order to purchase the chit fund amount;