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Article 26: Assessment of the Creditworthiness and Due Diligence of the Institutional Beneficiary
Date(g): 1/12/2021 | Date(h): 26/4/1443
Effective from Dec 01 2021 - Nov 30 2021 To view other versions open the versions tab on the right
1-
The Debt-Based Crowdfunding Company shall check and document the credit record of the Institutional Beneficiary after its approval.
2-
Upon the Institutional Beneficiary’s approval, the Debt-Based Crowdfunding Company shall register the credit information of the Institutional Beneficiary with one or more of the licensed credit bureaus, in accordance with the relevant laws, regulations, and instructions. Such information shall be updated throughout the period of dealing with the Institutional Beneficiary.
3-
The Debt-Based Crowdfunding Company shall adopt clear, transparent and documented scientific methods, criteria and procedures to evaluate the creditworthiness of the Institutional Beneficiary and its ability to repay the debt. Such methods, criteria, and procedures shall be applied in accordance with the best practices in this area. The board of directors of the Debt-Based Crowdfunding Company shall approve these criteria and procedures, review them at least on an annual basis, update them when necessary, and document such update.
4-
The Debt-Based Crowdfunding Company shall set clear policies regarding the Institutional Beneficiary due diligence and identification criteria as well as initial due diligence. The due diligence framework shall cover at least the following:
a.
Verifying the legal status of the Institutional Beneficiary.
b.
Verifying the identity of the Institutional Beneficiary, including its establishment.
c.
Verifying the address of the Institutional Beneficiary.
d.
Ensuring that there is no conflict of interest between the Debt-Based Crowdfunding Company and the Institutional Beneficiary.
e.
Verifying the sufficiency of the Institutional Beneficiary’s resources to carry out the activity, including its solvency, credit history, and past performance.
f.
Assessing the Institutional Beneficiary’s business or financing levels (if any) and the existing financing and its source.
g.
Assessing the business plan of the Institutional Beneficiary.
5-
The Debt-Based Crowdfunding Company shall inform Participants of the results of the due diligence procedure in the risk assessment process.
