guarantee fund policy
how the estate keeps the money that backs its promises to leaseholders. every sum hak sewa template promises to pay a Holder, and every official penalty a Holder's works can draw onto the estate's title, is paid from here first.
why the fund exists
a promise to refund is worth what stands behind it. the fund turns the exit clauses of the lease — title failure, a design change required by law, a Hak Pakai the estate failed to deliver through its own fault — into money on a separate account with a published balance. it follows the strategy rule "tithes off the top": reserves are set aside before anything is spent.
inflows
| source | share | clause |
|---|---|---|
| every sum received under a lease: premium, rent, instalments | 5% | hak sewa template 3.5 |
| every assignment fee | 5% | 3.5 |
| every Hak Pakai upgrade fee | 5% | 3.5 |
| recoveries from a Holder after the fund paid a penalty for that Holder | 100% | 8.9 |
a credit enters the fund before any other use of the money it comes from.
how it is kept
- one bank account in the Company's name, used for nothing else, apart from operating money and from the completion-security account of 8.5
- held in rupiah; the ledger carries each credit as century index quantities at the fix of the day it enters, so the balance keeps its value in the index
- the ledger lists every credit and every payment: date, source clause, Plot, amount in rupiah, quantities
- the balance and the ledger are published in the register of leases each month with the bank statement, and stated in every Estate Certificate
- the accountant reconciles the ledger to the bank statement monthly; the annual audit of the Company covers the fund as a separate schedule
who signs
the Director initiates a payment and a Commissioner authorises it. a sum due to a Holder is paid on those two signatures alone; any other use of the fund needs commissioner approval. a Holder who is also a shareholder takes no part in a decision on its own claim.
order of payment
when claims stand at the same time, the fund pays in this order. within one rank, claims are paid in the order they became due; claims due on the same day share pro rata.
| rank | claim | why this rank |
|---|---|---|
| 1 | official penalty, order or assessment against the estate arising from a Holder's works, occupation or use (8.9) | unpaid, it runs against the title every Holder's lease stands on |
| 2 | sums under an arbitral award in favour of a Holder | the award is final and due within 10 days |
| 3 | exit payments a Holder is entitled to: title failure (15.5, 16.3), licence deprivation (14.4), long stop (9.3), design change (10.6.3), Hak Pakai failure by the Landowner's cause (12.1.11) | a Holder leaving the estate is owed money now |
| 4 | buy-back under the build obligation (9.5) | the estate's own choice to recover an idle plot |
| 5 | return of surplus to the Company | with commissioner approval |
deadlines
| step | time |
|---|---|
| payment of a supported claim | 30 days of the claim |
| payment of an arbitral award | 10 days of the award |
| payment of an official penalty | before its due date |
| recovery demand to the Holder after a rank-1 payment | 10 working days of the payment |
what the fund is
the fund is a Company asset held for Holders. on insolvency a Holder ranks as an unsecured creditor.