Singapore legislation
Clause 270
Clause 270
Loans and deposits to be immediately repayable on certain events
(1)
Where there is, in any prospectus issued in connection with an offer or invitation in respect of debentures, a statement as to any particular purpose or project for which the moneys received by the borrowing corporation in response to the invitation are to be applied, the borrowing corporation shall from time to time make reports to the trustee for the holders of those debentures as to the progress that has been made towards achieving such purpose or completing such project.
(2)
Each such report shall be included in the report required to be furnished to the trustee for the holders of the debentures under section 268(1).
(3)
When it appears to the trustee for the holders of the debentures that such purpose or project has not been achieved or completed —
within the time stated in the prospectus within which the purpose or project is to be achieved or completed; or
where no such time was stated, within a reasonable time,the trustee may and, if in his opinion it is necessary for the protection of the interests of the holders of the debentures, shall give notice in writing to the borrowing corporation requiring it to repay the moneys so received by the borrowing corporation and, within one month after such notice is given, lodge with the Authority a copy thereof.
(4)
The trustee shall not give notice under subsection (3) if he is satisfied —
that the purpose or project has been substantially achieved or completed;
that the interests of the holders of debentures have not been materially prejudiced by the failure to achieve or complete the purpose or project within the time stated in the prospectus or within a reasonable time; or
that the failure to achieve the purpose or project was due to circumstances beyond the control of the borrowing corporation that could not reasonably have been foreseen by the borrowing corporation at the time that the prospectus was issued.
(5)
Upon receipt by the borrowing corporation of a notice referred to in subsection (3), the borrowing corporation shall be liable to repay, and on demand in writing by a person entitled thereto shall immediately repay to him any moneys owing to him as the result of a loan or deposit made in response to the invitation unless —
before the moneys were accepted by the borrowing corporation, the borrowing corporation had given notice in writing to the persons from whom the moneys were received specifying the purpose or project for which the moneys would in fact be used and the moneys were accepted by the borrowing corporation accordingly; or
the borrowing corporation by notice in writing served on the holders of the debentures —
had specified the purpose or project for which the moneys would in fact be applied by the borrowing corporation; and
had offered to repay the moneys to the holders of the debentures, and that person had not within 14 days after the receipt of the notice, or such longer time as was specified in the notice, in writing demanded from the borrowing corporation repayment of the money.
(6)
Where the borrowing corporation has given a notice in writing as provided in subsection (5), specifying the purpose or project for which the moneys will in fact be applied by the borrowing corporation, this section shall apply and have effect as if the purpose or project so specified in the notice was the particular purpose or project specified in the prospectus as the purpose or project for which the moneys were to be applied.