MoolahSense has put in place comprehensive arrangements so that in the event that MoolahSense goes out of business, the notes that have been successfully issued on the platform will be unaffected and investors will continue to receive their monthly repayments.
As investors are financing directly to businesses, the parties to the note are between the Investors and the Issuers. These contracts remain in place and are unaffected. MoolahSense has entered into a backup servicing arrangement to transfer the servicing functions of all outstanding notes to provide continuity in the event that MoolahSense becomes insolvent.
In the event of business cessation by MoolahSense, a written notice shall be published to all Issuers and Payees of existing Notes on the takeover by the designated backup service provider.
The backup service provider shall be entitled to charge each Payee a service fee, on such periodic basis as notified to the Payees. Service fees charged shall not exceed level of investor servicing fee charged by MoolahSense previously.
The backup service provider will carry out the following activities:
Maintain an account under a licenced financial institution in Singapore, for the purpose of receiving and holding the monies of the Issuers and Payees of existing Notes.
Consolidating monthly instalments from the Issuers and making payments to the registered bank accounts of the Payees of existing Notes at the end of every three (3) months.
Maintaining records of all transactions relating to the Notes
Responding to queries of the Issuer and Payees of existing Notes
Recovery of partial repayment, missed repayment, late or non-payment of Issuers