Common use of Instalment Plus Clause in Contracts

Instalment Plus. 13.1 The Borrower may notify the Lender on the Application Form or by other Notice of its request to use Instalment Plus. The Lender may accept or decline such request in its absolute discretion. If the Lender accepts such request, then this Clause 13 will apply to the Margin Loan Facility for the duration of the Instalment Plus Period. 13.2 The Borrower agrees to: (a) pay in cleared funds, at the commencement of the Instalment Plus Period, the Initial Contribution into the Loan Account; (b) pay in cleared funds, each month of the Instalment Plus Period, a Monthly Contribution into the Loan Account by direct debit from a Nominated Account; (c) ensure the Securities acquired with the proceeds from Instalment Plus: i comprises only Acceptable Investments which are approved from time to time by the Lender for the purposes of Instalment Plus; iii become part of the Secured Portfolio. 13.3 Subject to the Facility Agreement, the Lender will advance to the Borrower: (a) at the commencement of the Instalment Plus Period, a Loan for an amount equal to the Initial Investment; and (b) each month of the Instalment Plus Period, a Loan equal to the Monthly Investment. 13.4 The Instalment Plus Period begins on the date that the Lender accepts the Borrower’s request to use Instalment Plus and ends on the earlier of the date: (a) the Lender ceases to make Instalment Plus available to the Borrower; (b) the Borrower gives the Lender a Notice and the Lender accepts the Borrower’s request to cease using Instalment Plus; (c) the Margin Loan Facility is terminated; (d) the Borrower fails to meet its obligations under this Clause 13; or (e) upon the occurrence of an Event of Default. 13.5 If the Borrower’s use of Instalment Plus ceases as a result of Clauses 13.4(b), 13.4(c), 13.4(d) or 13.4(e) the Lender is not obliged to give the Borrower a Notice that Instalment Plus has ceased. If the Borrower’s use of Instalment Plus ceases as a result of Clauses 13.4(a), the Lender may take reasonable steps to give a Notice to the Borrower. If the Lender notifies the Borrower that Instalment Plus will cease to be available, the date specified in the Notice must not be less than 24 hours after the time that the Lender takes reasonable steps to give the Notice to the Borrower. 13.6 If: (a) an Event of Default occurs; (b) the Margin Loan Facility becomes subject to Gearing Adjustment; or (c) the Facility Balance will or is likely to exceed the lesser of the Credit Limit and the Lending Value, the Lender may cease to make Instalment Plus available to the Borrower and is not required to notify the Borrower of any cancellation or suspension. 13.7 Clause 9 (Minimum Interest Balance) does not apply during the Instalment Plus Period.