CONFIDENTIAL ##
Terms of the Lifeboat
Annex I
Under the Lifeboat, the Government facility is treated on a "Last-In-First-Out" (LIFO) basis. Drawings from the Lifeboat carry interest
at the prime rate and
repayments to the lenders are ranked according to the following priority -
2.
(a) interest on the Government facility and the
broker-lenders/shareholder-lenders facility pari
(b)
(c)
passu;
principal amount drawn under the Government facility; and
principal amount drawn under the broker-lenders/ shareholders facility.
Funds for the repayment are provided from the following sources
(a)
(b)
a contract fee of $30 per contract in respect of trading done in the HSI futures market;
a special levy of 0.03% payable on transactions in the Stock Exchange of Hong Kong; and
(c) net
amounts received in recovery from members of the HKFE who have defaulted in respect of their obligations to the HKFGC.
G.F. 326
CONFIDENTIAL #