Sfc Subordinated Loan Agreement

12 Tháng Tư, 2021 by Admin

The loan clause, interest rate clause and certification clause are generally the only variable clauses allowed to reflect the characteristics of the loan concerned. Given the financial situation of the loan and the duration of the loan, the interest payable should not be higher than the market rate, even though unpaid loans may be acceptable. Under the agreement ATIF HK has agreed to acquire (i) from the seller 67,000,000 common shares of target, 100% of the interests of the objective and (ii) to acquire from Listco an unsecured subordinated loan, with a capital amount of HK 10,000,000 (the “subordinated loan” sold to the objective by Listco under a subordinated credit contract dated 26 August 26. , 2011, as part of Listco, Target and CFS (the “Subordinated Loan Agreement”) (together the “acquisition”). In return for the acquisition, ATIF HK agreed to pay a cash sum of HK 5,700,000 (net inventory value) of the target at the close of the acquisition, estimated at approximately HK 9,600,000 and not exceeding HK 9,700,000. According to a November 29, 2004 CFS circular, the CFS would take less than four business days to process any request for approval of subordinated credits, provided that all necessary documents and details are provided in accordance with regulatory requirements. What criteria will the CFS consider when deciding to approve a subordinated loan? A licensed company`s filing commitments do not include debts under an “approved subordinate loan.” This means that the company could raise capital to cover its liquid capital obligations through approved subordinated loans, regardless of any outstanding commitments under these loans. Licensed companies are invited to contact the CFS intermediary supervisory service ahead of a subordinated loan application to discuss issues such as the appropriate type of subordinated loan agreement and the acceptable level of the loan. How long does it take the CFS to approve a subordinated loan? The CFS verifies that the loan subject to approval meets the following requirements (non-exhaustive and only as a reference): if the proposed subordinate loan is to be alleviated by an advance already granted by the lender to the approved company (e), the loan must be recognized as a tier debt to the borrower`s liquid entity and should not be considered an authorized subordinate loan unless theFC grants final authorization. We find that the CFS may impose on the subordinated loan the conditions it deems appropriate in the current circumstances. If, after reviewing the proposed subordinated loan agreement and other submissions, the CFS is prepared to accept the application, the CFS will in principle issue a letter of authorization to the licensee containing the documents and other requirements, including, but not limited to, “approved subordinated loans,” a subordinated loan obtained by a CFS-approved company. In order for a subordinate loan agreement by an approved capital company to be used to enhance its ability to meet the minimum liquid capital requirements applicable under the RRIF, the loan must have been entered into entirely under a subordinated loan agreement that provides for the subordination of the lender`s rights to the rights of other creditors in the event of insolvency or default by the licensee to perform the RRIF.