General Terms and Conditions of THS Debenture Program
Subject to and except as may be provided in Collateral Terms, if any, set out in a Schedule of Collateral Terms accompanying these General Terms and Conditions, the Debenture is non-interest bearing and not secured by a mortgage or charge on any property or assets of The Harbour School Foundation Limited ( the “Foundation” ) or The Harbour School Limited.
A. Payment in full – Family Debentures will be paid upon admission. If paid in full, the exemption from paying the annual Capital Levy takes effect immediately.
B. Payment by instalments – Payments may be made by instalment as follows: $150,000 due upon admission; $150,000 due 6 months after initial payment; $150,000 due one year after initial payment. Exemption from annual Capital Levy for the upcoming school year takes effect only upon payment of all instalments.
Exemption from Capital Levy:
Upon full payment, the Debenture holder will be exempt from payment of the annual Capital Levy (currently assessed at HK$33,000 per student) in respect of one nominated child.
Perpetual, unless redeemed by the Foundation.
Upon approval of the Board of Directors of the Foundation and payment of the respect of one nominated child prescribed transfer fee equal to the greater of:
A. 15% of the face value; or
B. 50% of the difference between the face value of the Debenture being transferred and the price at which such transfer takes place! (“the current transfer price”), except where such transfer is itself of a previously transferred Debenture, in which case 50% of the difference between the immediately previous transfer price and the current transfer price.
Only at the option of the Foundation at the face value.
1. The Debenture holder may nominate one son or daughter or adopted son or daughter (as the case maybe) of his or her family member (including extended family) (if Debenture holder is an individual) OR one son or daughter or adopted son or daughter (as the case may be) of a director or employee (if Debenture holder is a corporate entity) to attend The Harbour School. A Debenture does not guarantee enrolment in The Harbour School. Debentures may only be purchased after a child has been granted.
2. Debenture holders who wish to sell debentures should contact the Foundation for their names to be placed on the Resale Debenture List. The Foundation will use reasonable endeavours to match buyers and sellers and facilitate the sale and transfer of all Debentures in accordance with the Foundation’s policies and the terms and conditions of the Debenture including the payment of the prescribed transfer
3. The Foundation is entitled to disclose the name and address of the Debenture holder, the amount of Debenture, and respective dates of allotment and redemption of the Debenture to the Companies Registry. Such information will become public record and is subject to public inspection in accordance with the Companies Ordinance (Cap. 622).
4. In the event that any payment has not been settled in full when due under a Family Debenture:
(i) (a) Simple interest shall accrue on any amount outstanding at the rate of 2.5 per month;
(b) The Foundation may treat the failure to settle any amount (including interest) that remains outstanding after 30 days as a breach of condition so as to entitle it to cancel the Family Debenture without obligation to repay any money already received thereunder and, upon such cancellation, to terminate the enrolment of any student who is attending the Harbour School by virtue of any right of nomination enjoyed under that Family Debenture;
(ii) The Foundation may, in its absolute discretion, accept late payment of any amount (including interest) outstanding for any period of time, during which period it may, however, suspend any student who would otherwise be attending the Harbour School by virtue of any right of nomination under that Family Debenture, which exercise of discretion shall not prevent the Foundation from exercising its rights under (i)(b) above at any later time, should full payment of all outstanding amounts (including interest) still not have been made.
No right of nomination may be exercised at any time during which any amount (including interest) remains outstanding under a Family Debenture.
5. For easier understanding, subject to the Schedule of Collateral Terms, if any, this document sets out a summary of the detailed terms and conditions printed on the Debenture Certificate. In case of any difference, the terms and conditions printed on the Debenture Certificate shall prevail, subject always to the Schedule of Collateral Terms, if any.