If the Issuer fails to pay an amount due, be it interest/profit and/or principal amount, a grace period of 7 days (“Grace Period”) may be granted to the Issuer at our sole discretion.

If such Grace Period is granted to the Issuer and the Issuer fails to pay the overdue amount by the end of the Grace Period (“Grace Period Expiry Date”), it is an occurrence of event of default and we will commence the necessary default management and recovery actions in accordance with the Investor Agreement. In addition, the Issuer is required to pay the following to you after the Grace Period Expiry Date:

(a) If it is a conventional investment note, a late payment interest of 3.50% per annum plus interest rate on such overdue amount from and including the due date up to and excluding the settlement date; or

(b) If it is an Islamic investment note, a late payment charge on such overdue amount at an amount and manner as prescribed by the Shariah Advisory Council of Securities Commission Malaysia.

E.g. You invest RM3,000 at 8% p.a. in a 1-year conventional investment note, the first semi-annual interest payment is due on 1^st April but the issuer only pays on the 12^th April, you will receive RM240 in interest payment and RM0.83 in late payment interest [(8.0%+3.5%) x 11 days/ 365 days x RM240].

You can refer to the terms and conditions stated in the Investor Agreement for further details.