Summary of update to Partner Capital Loan Terms and Conditions: 

Account closure or early settlement due to your resignation or retirement from the partnership

101.4 In the event that you resign or retire from the partnership, you and/or the partnership must notify us in writing of the final employment date within 1 month from the resignation/retirement date.

101.5 Upon receipt of the written notice, we will calculate and notify you and the partnership of the outstanding balance under the partner capital loan and the due date. You must continue to service each monthly instalment amount until the partnership applies the balance of the borrower’s capital to repay and satisfy the outstanding balance in full no later than the due date before such amounts are distributed or otherwise paid or disbursed to you or for your benefit or your legal personal representatives, provided that no insolvency event has occurred or has been threatened to occur in relation to the partnership.

101.6 If the borrower’s capital is insufficient to satisfy the outstanding balance by the due date, the partnership shall pay to us the entire balance of the borrower’s capital at that time and shall make immediate payment of any further funds credited to the borrower’s capital thereafter until the outstanding balance has been fully satisfied.

101.7 If the outstanding balance is not repaid and satisfied in full on or before the due date, finance charges at the prevailing interest rates will be charged on the unpaid sum from the due date until the date on which all sums due (including finance charges) are paid in full.

The outstanding balance

101.8 For the avoidance of doubt, the outstanding balance includes the total sum you owe to us under the partner capital loan according to your records with us. This includes the outstanding principal amount of the partner capital loan, any fees, charges, goods and services tax, interest, costs and expenses.

105. Meaning of words

borrower’s capital means any amounts placed to the credit of your capital account, current account or any other accounts holding funds on your account in the partnership, including without limitation your capital contribution to the partnership.

due date means the date falling 6 months from the final employment date.

final employment date means the official last day of your employment with the partnership.

insolvency event means:

In respect of the partnership:

1. it is or is presumed or deemed to be unable or admits inability to pay its debts (or any class of them) as they fall due, suspends or threatens to suspend making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (or any class of them) with a view to rescheduling any of its indebtedness;
2. the value of its assets is less than its liabilities (taking into account contingent and prospective liabilities);
3. a moratorium is declared in respect of any of its indebtedness;
4. any corporate action, legal proceedings or other procedure or step is taken in relation to:

(A) the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration, provisional supervision or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the partnership;

(B) a composition, compromise or arrangement with any creditor of the partnership or an assignment for the benefit of creditors generally of the partnership (or a class of such creditors);

(C) the appointment of a liquidator, receiver, administrator, administrative receiver, compulsory manager, provisional supervisor or other similar officer in respect of the partnership or any of its assets; or

(D) enforcement of any security over any assets of the partnership,

or any analogous procedure or step is taken in any jurisdiction; or

In respect of a natural person: 

(i)         the person has a petition for a bankruptcy order filed against it;

(ii)        a receiver, a trustee or a provisional trustee for creditors or in bankruptcy is appointed to any of the person’s property;

(iii)       a garnishee notice is given concerning any money that the person is said to owe;

(iv)       the person proposes or enters into an arrangement or composition with, or an assignment for the benefit of, any of the person’s creditors;

(v)        the person proposes or effects a moratorium involving any of the person’s creditors;

(vi)       the person stops or suspends, or threatens to stop or suspend:

(A) the payment of all or a class of its debts; or

(B) the conduct of all or a substantial part of its business or trade;

(vii)      the person is unable to pay all of its debts as they fall due or is presumed to be insolvent under any applicable law; or

(viii)     anything having a substantially similar effect to any of the events specified in paragraphs (i) to (vii) above happens to the person under the law of any jurisdiction. 

resignation/retirement date means the date on which you give your notice of resignation or notice of retirement to the partnership.

The revised Partner Capital Loan Terms and Conditions is also available at https://av.sc.com/sg/content/docs/scb-tc-booklet.pdf