When this happens, we have a backup arrangement in place with a Service Provider to take over our role in respect of the servicing of our agreement with you. This essentially means that the Service Provider would be in-charge of the collection of repayments from borrowers and then allocating them to your investment account. They would be able to instruct our escrow agent and facilitate the withdrawal of funds from them under your instructions and conduct debt collection services if there are late repayments / defaults.
Management of Platform Cessation
To ensure that investors continue to:
- Have access to their funds that were deposited/repaid with the escrow account managed by a trustee agent, and
- Receive principal and interest repayments from borrowers.
Funding Societies has in place Back Up Service Arrangement with a Service Provider to protect investors in the unlikely event of a voluntary or involuntary cessation of Funding Societies’ business.
Scope of Service for backup arrangement
- Replace Funding Societies as Agent in respect of the servicing of any Facility Agreements between Investors and Borrowers
- Acting on investors’ instructions to withdraw funds from their account held in the Escrow Account
- Facilitate the collection and receiving of principal and interest repayments and any other amounts that may be contractually payable by the Borrowers (collectively “Repayments”)
- Allocating the Repayments to the relevant investor accounts on a timely basis but no later than 5 business days from receipt of Repayments from the Borrower
- Initiate Debt collection services if a default event occurs on an outstanding Facility in accordance with the relevant Facility Agreement between Investors and Borrowers
- The Service Provider will be entitled to deduct the relevant service fees that would otherwise have been collected by Funding Societies, e.g. the Service Fee on the Interest when it is received
Communications we will make in the event of Platform cessation
Funding Societies will inform all investors and borrowers of the Platform Cessation by email or such other mode of communication deemed appropriate by Funding Societies, and provide investors and borrowers with:
- Contact information details of the Service Provider including, the name, phone numbers, email addresses and operating hours
- Information on how to provide withdrawal instructions to the service provider
- How to obtain information regarding your balance and repayment progression
- How to keep updated with collections relating to late repayments