Section 25
Loan and deposits to be immediately repayable on certain events
of Labuan Financial Services and Securities Act 2010
Where in any prospectus issued in connection with an offer or invitation under subsection 8(1) to subscribe for or to purchase debentures of a Labuan company there is a statement as to any particular purpose or project for which the monies received by the borrowing company in response to the offer or invitation are to be applied, the borrowing company shall from time to time make reports to the trustee for the holders of debentures of the borrowing company as to the progress that has been made towards achieving such purpose or completing such project.
(2)
Where it appears to a trustee to which a report is furnished by a borrowing company 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, then within a reasonable time, the trustee may, and, if in its opinion it is necessary for the protection of the interests of the holders of the debentures, the trustee shall give notice in writing to the borrowing company requiring it to repay the monies so received and, within one month after such notice is given, lodge with the Authority a copy of such notice.
Act 704
(3)
A trustee shall not give a notice under subsection (2) if it is satisfied—
(a)
that the purpose or project has been substantially achieved or completed;
(b)
that the interests of the holders of the 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
(c)
that the failure to achieve or complete the purpose or project was due to circumstances, other than shortage of funds, beyond the control of the borrowing company that could not reasonably have been foreseen by that borrowing company at the time that the prospectus was issued.
(4)
This section shall not apply to an offer or invitation of securities under subsection 8(5).