Section 7A
Development Account
of Housing Development (Control and Licensing) Act 1966
(2)
Where a housing development is to be developed in phases, the licensed housing developer shall open and keep a Housing Development
Account under subsection (1) for each phase of such housing development.
(3)
The licensed housing developer shall pay into the Housing
Development Account of a housing development the purchase moneys received by the licensed housing developer from the sale of housing accommodation in the housing development and any other sum of money which are required by regulations made under this Act to be paid into the
Housing Development Account.
(4)
The licensed housing developer shall not withdraw any money from the Housing Development Account except as authorized by regulations made under this Act.
(5)
Subject to paragraph (6)(b), all moneys in the Housing
Development Account and all moneys held by the stakeholder shall, notwithstanding any other written law to the contrary, be deemed not to form part of the property of the licensed housing developer in the event—
(a)
the licensed housing developer enters into any composition or arrangement with his creditors or has a receiving order or an adjudication order made against him; or
(b)
the licensed housing developer, being a company, goes into voluntary or compulsory liquidation.
(6)
Upon the happening of any of the event referred to in subsection (5)—
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(a)
the moneys in the Housing Development Account and moneys held by the stakeholder shall vest in the official receiver, trustee in bankruptcy or liquidator as the case may be, to be applied for all or any of the purposes for which moneys in the
Housing Development Account and moneys held by the stakeholder are authorized by regulations made under this Act to be withdrawn; and
(b)
any moneys remaining in the Housing Development Account and moneys held by the stakeholder, after all payments have been made pursuant to paragraph (a) and all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the housing development have been fully discharged and fulfilled, shall be held by the official receiver, trustee in bankruptcy or liquidator, as the case may be, as money belonging to the licensed housing developer to be applied in accordance with the law relating to bankruptcy of or the winding-up of a company.
(7)
Notwithstanding any other written law to the contrary, all moneys in the Housing Development Account and moneys held by the stakeholder shall not be garnished until all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the housing development have been fully discharged and fulfilled.
(8)
Subject to the Banking and Financial Institutions Act 1989 and the
Islamic Banking Act 1983, the Minister may, if he thinks necessary, appoint an approved company auditor to investigate the books, accounts and transactions of a Housing Development Account and the licensed housing developer shall pay all expenses incurred hereto.
(9)
This section shall not apply to any housing development carried on by a licensed housing developer where all the housing accommodation in the housing development will not be offered for sale and purchase before the completion of the housing development and the issuance of certificate of completion and compliance.
(10)
Any housing developer who contravenes or fails to comply with this section shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than two hundred and fifty thousand ringgit
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but which shall not exceed five hundred thousand ringgit and shall also be liable to imprisonment for a term not exceeding three years or to both.