Payment of ARF shortfall, etc., by instalments
7B.—(1)  On the application of the liable person, the Registrar may by written notice allow the liable person to pay the following amounts (collectively called in this rule the principal amount) by instalments in accordance with an instalment plan determined by the Registrar:
(a)the amount of the ARF shortfall that has not been paid in full under rule 7A(2) and is consequently outstanding;
(b)any interest payable under rule 7A(3) that remains unpaid on the date specified by the Registrar for payment of the first instalment.
(2)  Where the Registrar grants the application of the liable person to pay the principal amount in instalments, the liable person must pay compound interest on the principal amount calculated at a rate of 1.5%-point above the 3-month compounded SORA, with monthly rests, in accordance with the instalment plan.
(3)  The Registrar must specify in the written notice under paragraph (1) the following particulars of the instalment plan:
(a)the dates for payment of the first instalment and each subsequent instalment;
(b)the number of monthly instalments under the instalment plan;
(c)the period of the instalment plan;
(d)the manner in which each instalment must be paid;
(e)the total amount payable under each instalment and broken down into —
(i)the amount payable towards the principal amount; and
(ii)the amount of interest payable under paragraph (2).
(4)  If the liable person fails to pay any instalment in full by the date specified in the instalment plan for the payment of that instalment —
(a)the liable person must pay to the Authority simple interest, on the amount of the instalment that is in arrears, at a rate of 4.5%-point above the 3-month compounded SORA from the date immediately after the date specified for payment of that instalment to the earlier of the following dates:
(i)the date that instalment is paid in full;
(ii)if the Registrar gives the liable person a notice of default under sub-paragraph (b) — the date of the notice; and
(b)the Registrar may give the liable person a written notice of default.
(5)  If the Registrar gives the liable person a notice of default —
(a)the instalment plan is terminated;
(b)the following amounts (collectively called in this rule the default amount) become immediately due and payable:
(i)the entire balance of the principal amount;
(ii)all outstanding interest amounts payable under paragraphs (2) and (4)(a);
(c)the liable person must pay to the Authority simple interest at a rate of 4.5%-point above the 3-month compounded SORA on the default amount, from the date of the notice of default to the earlier of the following dates:
(i)the date the default amount is paid in full;
(ii)if the Registrar allows the liable person to pay the default amount by instalments in accordance with a new instalment plan under sub-paragraph (d) — the date of the first instalment under the new instalment plan; and
(d)the Registrar may, on the application of the liable person, allow the liable person to pay the default amount and any interest under sub-paragraph (c) by instalments in accordance with a new instalment plan.
(6)  Paragraphs (2) and (3) apply to a new instalment plan mentioned in paragraph (5)(d), and in those paragraphs —
(a)any reference to an instalment plan is a reference to the new instalment plan; and
(b)any reference to the principal amount is a reference to the default amount under the new instalment plan.
(7)  If the liable person fails to pay any instalment in full under the new instalment plan mentioned in paragraph (5)(d), paragraphs (4), (5) and (6) apply, and —
(a)any reference in paragraph (5)(b), (c) and (d) to the default amount is a reference to the amount in default under the new instalment plan; and
(b)any reference to a new instalment plan in paragraph (5)(c) and (d) is a reference to a subsequent new instalment plan, if any.
[S 231/2024 wef 01/04/2024]