Consent & Risk Disclosure Terms
I hereby consent to become a Partner in the LLP created for investment in SPV listed on LegalPay Platform (www.legalpay.in) after acknowledging the risks involved in investing in opportunities.
I, being a prospective partner in the Special Purpose Vehicle (SPV), understand and accept that there are following risks involved while transacting on the LegalPay Platform:
Overdue Payment: There might arise a delay in payment and/ or extension in the stipulated statutory period for completion of the resolution/liquidation process of the corporate debtor in case the relevant Adjudicating authority extends the time for such process.
Accrual of interest: In the event of failure of resolution process, the relevant Adjudicating Authority might pass an order for commencement of liquidation proceedings of the Corporate Debtor LegalPay (and consequently, the LLP) might only be able to claim interest as accrued and unpaid up to the twelve months from the liquidation commencement date in terms of interim finance facility extended.
Dispute: There might arise disputes between LegalPay, the LLP, NBFC and the Resolution Professional/ Liquidator, Stakeholders/creditors of the Corporate Debtor (involved in the Interim finance that LegalPay has financed), regarding the quantum and recovery of LLP’s share out of the facility extended by it or in the event of Liquidation of the Corporate Debtor. There might also arise a dispute between LegalPay, the LLP, NBFC and the Resolution Professional/ Liquidator, Stakeholders/creditors of the Corporate Debtor with respect to any of other obligations that are entered into while entering into interim financing arrangements.
Fraud Risk: Fraudulent act involving the Corporate Debtor/ Stakeholder/ Resolution Professional/liquidator might occur, leading to failure in payment of the LegalPay’s (and consequently, the LLP’s) interim finance facility or share in liquidation estate of Corporate Debtor.
I understand that LegalPay Technology Private Limited (“LegalPay”) is neither a stock exchange, as recognised by the Securities and Exchange Board of India under the Securities Contract (Regulation) Act, 1956 nor an NBFC, as recognised by Reserve Bank of India. The LegalPay Platform is not a fundraising platform. LLP solely funds the interim finance requirements of corporates under distress and undergoing resolution process in lieu of earning interest income, and the LegalPay Platform only facilitates prospective partners to collaborate and finance the interim finance cases through due diligence process, in expectation of higher return from their investment. No securities are offered by the LLP incorporated by the prospective partners through the Platform.
I accept all the risks involved in investment made in the SPV as well as in the management of the SPV, and I agree to not hold LegalPay responsible for delays, defaults, frauds or other risks in relation to the management of the SPV under any circumstances whatsoever.
I acknowledge and understand that LegalPay does not undertake or guarantee or promise any assured returns or provides any security/undertakings to me pertaining to any interim finance product listed on the LegalPay Platform.
I hereby consent to proceed with the investment bearing these risks in mind. Hence, a final decision to invest in this SPV with the other partners is mine, and I understand all risks mentioned above.