Housing and Development (Mortgage to Lender) Rules

under its Prime Location Public Housing (PLH) model; or

under a similar model where the Board sells flats in a particular location and prices these flats with additional subsidies;“lender” means any —

bank that holds a licence under section 7 or 79 of the Banking Act (Cap. 19);

finance company licensed under the Finance Companies Act (Cap. 108); (c)direct insurer registered under the Insurance Act (Cap. 142); or

merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act;“mortgage” includes any charge on any flat for securing the repayment of any money lent to any person;“subsidy recovery amount” means an amount that the Board is entitled to recover from a mortgagee upon the sale by the mortgagee of a flat priced with additional subsidies, computed in accordance with the formula where —

A is a percentage specified by the Board for the computation of the subsidy recovery amount in the agreement for lease or lease entered into between the Board and the mortgagor; and

B is the higher of the following amounts:

the consideration for the sale by the mortgagee of the flat priced with additional subsidies;

the value of the flat priced with additional subsidies at the time of its sale by the mortgagee as assessed by the Board, if the Board makes such an assessment.

the mortgage shall be security solely for the repayment of a housing loan granted to the mortgagor to finance or re-finance the purchase of the mortgaged flat; (b)the mortgagee shall hold the mortgaged flat subject to the rights and powers of the Board under the Act (including these Rules and all other subsidiary legislation made under the Act) and the agreement for lease or lease entered into between the Board and the mortgagor, and shall comply with the policies of the Board that may from time to time be imposed;

the mortgagee shall not exercise its power of sale under the mortgage unless it has first granted an option to the Board or the Board’s nominee to purchase the mortgaged flat at an official sale price determined by the Board, and the option is not exercised within 2 months from the date it is granted;

the mortgagee, in exercising its power of sale, shall not sell the mortgaged flat to a purchaser unless the purchaser is first approved by the Board as a person eligible under its prevailing policies to purchase the mortgaged flat; and

the moneys received by a mortgagee in exercise of its power of sale, after discharge of prior encumbrances, shall be held by the mortgagee in trust to be applied —

firstly, in payment to the Board of any subsidy recovery amount in respect of the mortgaged flat;

secondly, in payment of all costs and expenses properly incurred by the mortgagee as incidental to the sale or any attempted sale, or otherwise;

thirdly, in payment to the mortgagee of all moneys secured by the mortgage and in payment to the Central Provident Fund Board of all moneys secured by its charge constituted under section 21B of the Central Provident Fund Act 1953, in the order of priority specified in the regulations made by the Central Provident Fund Board;

fourthly, in payment to the Board of any resale levy imposed by it in respect of the mortgaged flat;

fifthly, in payment to the Board of all moneys secured by its charge on the mortgaged flat (if any) under section 82 of the Act (formerly section 65H of the Act as in force before 31 December 2021) for unpaid improvement contribution, and in payment to any Town Council established under the Town Councils Act 1988 of all moneys secured by its charge on the mortgaged flat (if any), in the order of their priority;

sixthly, in payment to —

the Board of any unpaid improvement contribution under section 78 of the Act (formerly section 65D of the Act as in force before 31 December 2021) which is not secured by a charge on the mortgaged flat; and

any Town Council of the conservancy and service charges and interest accrued and due at the date of sale which are not secured by a charge on the mortgaged flat,both payments to rank equally without preference;

seventhly, in payment of subsequent mortgages and charges (if any) in the order of their priority;

eighthly, in payment to the Board of all other moneys owed to it in respect of the mortgaged flat; and

finally, the residue of such moneys so received shall be paid to the person who appears from the land-register kept under the Land Titles Act 1993 to be entitled to the flat sold or to be authorised to give receipts for the proceeds of the sale thereof.