Promissory Note Template Page 13
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28PLEASE NOTE THAT ITEMS HIGHLIGHTED IN YELLOW MAY BE VARIABLE BETWEEN
PROMISSORY NOTES, DEPENDING ON THE COMMERCIAL TERMS SET OUT
11.2
Upon receipt by the Borrower from the Lenders, or from CM on behalf of the Lenders, of a
repayment notice, notwithstanding anything herein, the Borrower shall repay the whole of the
outstanding Aggregate Principal, interest accrued and any fees and charges payable in one (1)
lump sum, no later than ten (10) Business Days from the date of receipt of the repayment notice.
11.3
All parties to this Note agree that in the event that the Borrower fails to pay in full any amount
due:
(a) CM shall have the right but not the obligation to report such default in payment to any credit
bureaus it deems appropriate;
(b) Within a thirty (30) days period from the date of default, CM shall have the sole right to
contact and deal with the Borrower, and to notify the Borrower to remedy the default and
make such late payment charges in Clause 9; and
(c) CM and each Lender shall be entitled to recover from the Borrower its share of costs and
expenses, including reasonable legal fees, incurred through or relating to any legal action
as a result of enforcing its rights under this Note.
11.4
If any payments remain due and outstanding beyond the period set out in Clause 11.3(b), all
parties to this Note agree that:
(a) CM shall appoint and engage a third party professional debt collection agency in recovering
the amount that is owed by the Borrower to the Lenders and CM. All debt collection fees
incurred shall be borne solely by the Borrower. The debt collection fee shall be calculated
as follows:
i.
if less than one (1) year since the end of the Tenor or the expiry of such other date
as may be agreed between the Borrower and CM, acting on behalf of the Lenders
in relation to the Principal, whichever is earlier, 25% of the outstanding amount
owed by the Borrower; or
ii.
if more than one (1) year since the end of the Tenor or the expiry of such other date
as may be agreed between the Borrower and CM, acting on behalf of the Lenders
in relation to the Principal, whichever is earlier, 40% of the outstanding amount
owed by the Borrower.
(b) CM shall immediately notify all Lenders of such payments that remain due and outstanding,
and request that each Lender notify CM on their decision to carry out or participate in any
legal action. For the avoidance of doubt, the rights and remedies hereunder are not
exclusive of any rights, powers and privileges provided by law or in equity. The amounts
payable to each party hereunder shall be a separate and independent debt and each party
shall be entitled to protect and enforce its rights arising out of or in connection with this
Note, and it shall not be necessary for any other party to be joined as an additional party in
any proceeding for such purpose. The Lenders further acknowledge and agree that such a
decision is made independently and not under any form of advice or recommendation by
CM.
(c) CM shall assume the following roles as part of its administrative functions:
a.
facilitating a channel for communications between all parties who wish to engage in
any legal action;
b.
obtaining for such parties cost estimates from third party legal advisors for any legal
actions to be taken;
c.
proposing to such parties a number of law firms as options to engage; and/or
Page 13 of 28
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