HOUSING DEVELOPERS
(CONTROL AND LICENSING) (AMENDMENT) ACT 1988
ACT A703
Date of Royal Assent:
15th May 1988
Date of publication in the Gazette: 9th June 1988
In force from: 1st December 1988 - PU(B) 630/88
An Act to amend the Housing Developers (Control and Licensing)
Act 1966.
BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda
Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and
Dewan Rakyat in Parliament assembled, and by the authority of the same, as
follows:
1. Short title and commencement.
This Act may be cited as the Housing Developers (Control
and Licensing) (Amendment) Act 1988 and shall come into force on such
date as the Minister may by notification in the Gazette appoint.
2. Amendment of section 3.
Section 3 of the Housing Developers (Control and Licensing)
Act 1966 [Act 118], which in this Act is referred to as "the principal
Act", is amended-
(a) by inserting before the
definition of "body of persons", the following new definition:
' "bank" means any bank licensed under the Banking Act
1973 [Act 102] or under the Islamic Banking Act 1983 [Act 276],";
(b) by inserting immediately
after the definition of "Controller", the following new definition:
' "finance company" means any finance company licensed
under the Finance Companies Act 1969 [Act 6],",
(c) by substituting for the
definition of "housing developer", the following definition:
' "housing developer" means any person, body of persons,
company, firm or society (by whatever name described), who or which engages
in or carries on or undertakes or causes to be undertaken a housing development,";
(d) by substituting for the
definition of "housing development", the following definition:
' "housing development" means to develop or construct
or cause to be constructed in any manner more than four units of housing
accommodation and includes the collection of monies or the carrying on of
any building operations for the purpose of erecting housing accommodation
in, on, over or under any land; or the sale of more than four units of housing
lots by the landowner or his nominee with the view of constructing more
than four units of housing accommodation by the said landowner or his nominee,",
(e) by inserting immediately
after the definition of "housing development", the following new definition:
' "Housing Development Account" means an account opened
and maintained by a licensed housing developer pursuant to section 7A;';
(f) by inserting immediately
after the definition of "Housing Development Account", the following new
definition:
' "housing lot" means any piece of land surveyed or otherwise,
to which a lot number has been assigned to it and which is subject to the
category "building" in accordance with the National Land Code 1965 [Act
56/65],", and
(g) by substituting for the
words "a licensed" in the definition of "purchaser", the word "any".
3. Amendment of section 5.
Section 5 of the principal Act is amended -
(a) by substituting for the
words "or undertaken" in subsection (1), the words ", undertaken or caused
to be undertaken";
(b) by substituting for the
colon in subsection (1) a fullstop;
(c) by deleting the proviso
to subsection (1);
(d) by inserting the words
"or cause to be undertaken" after the word "undertake" appearing in subsection
(3);
(e) by substituting for the
word "may", the word "shall" in subsection (3);
(f) by substituting for the
colon in subsection (4) a fullstop; and
(g) by deleting the proviso
to subsection (4).
4. New section 7A.
The principal Act is amended by inserting immediately after
section 7, the following new section 7A:
"Licensed huosing developer to open and maintain Housing
Development Account.
7A. (1) Subject to subsection (9), every licensed housing
developer shall open and maintain a Housing Development Account with a bank
or finance company for each housing development undertaken by the licensed
housing developer.
(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 monies received
by the licensed housing developer from the sale of housing accommodation in
the housing development and any other sum or sums 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 authorised by regulations
made under this Act.
(5) Subject to subsection 6 (b), all monies in the
Housing Development Account 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)-
(a) the monies in the Housing
Development Account 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 monies in the Housing Development Account are authorised by regulations
made under this Act to be withdrawn; and
(b) any money remaining in
the Housing Development Account, 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 monies in the Housing Development Account 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 section 36 of the Banking Act 1973 [Act
102], 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.
(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 ten thousand ringgit but
which shall not exceed one hundred thousand ringgit and shall also be liable
to imprisonment for a term not exceeding three years or to both.".
5. Amendment of section 10.
Section 10 of the principal Act is amended -
(a) by substituting for subsection
(1), the following:
"(1) Either on his own volition or upon being directed
by the Minister under subsection (2), the Controller or an Inspector may
from time to time under conditions of secrecy investigate into the affairs
of or into the accounting or other records of any housing developer.";
(b) by deleting in the English
text the comma appearing in paragraph (a) of subsection (2); and
(c) by deleting the word
"licensed" wherever it appears.
6. Amendment of section 18.
Section 18 of the principal Act is amended by substituting
for the words "not exceeding twenty thousand ringgit", the words "which shall
not be less than ten thousand ringgit but which shall not exceed one hundred
thousand ringgit".
7. Amendment of section 19.
Section 19 of the principal Act is amended -
(a) by deleting the word
"licensed" appearing in the first line;
(b) by deleting in paragraph
(b) of the English text the word "licensed" appearing in the fourth
line;
(c) by deleting the word
"or" at the end of paragraph (c);
(d) by inserting immediately
after paragraph (c), the following new paragraph (cc);
"(cc) fails to comply with any direction given by the
Minister under paragraph (a), (b), (d) or (e)
of section 11 (1); or" and
(e) by deleting the word
"licensed" appearing in the marginal note.
8. Amendment of section 21.
Section 21 of the principal Act is amended by deleting in
the English text the word "licensed".
9. Amendment of section 23.
Section 23 of the principal Act is amended by deleting the
words "the Controller".
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