Skip to content

Enforcement and default

Enforcement and default

  • What is the definition of enforcement?

    • The action of asserting the rights of DCMS and compelling you to comply with a loan agreement obligation or taking action under the loan or security.
    • The main obligations required of you under the terms of the SSP agreements are:
    Read less
  • What enforcement action may be taken and why?

    • Failure to meet the repayment, monitoring and reporting, and consent obligations are events of default under the terms of the loan agreement. DCMS have options available to them to resolve the default and to protect their financial position.
       
    • Although some events of default relate to other triggers, such as insolvency, many of the events of default are informed by your behaviour and the impact this has on DCMS financial recovery and security.
    • Options include but are not limited to:

      • Apply standard default interest until the default is resolved.

      • Apply a one-off default payment to compensate DCMS for the default.

      • Apply an increased interest rate to apply for the remaining life of the loan.

      • Accelerated repayment – bring forward the date at which the total loan must be settled.

      • Increase DCMS security for the loan.

      • Demand full or partial repayment.

      • Enforce the security and/or guarantees held.

      • Waive the breach/provide retrospective consent.

    • Note that the above can be used in isolation or in combination.
    Read less

Sign up to our newsletter

You can find out exactly how we'll look after your personal data, but rest assured we’ll only use it to make sure you receive our newsletter, to understand how you interact with our newsletter, and to provide administrative information about our newsletter.