There are certain cases in which TCX has the right to end the currency hedge contract for a specific local currency loan. For example, in case:
a payment due from Lendahand FX (LHFX) to TCX under the currency hedge contract, due to non-payment by the entrepreneur, cannot be paid by LHFX for more than 180 days, and the loan and currency hedge contract are not restructured within that period to eliminate the late payment.
LHFX and/or Hands-on BV fails to comply with certain information requirements, particularly regarding the timing and amount of payments received from the entrepreneur.
LHFX and/or Hands-on BV changes owners, and TCX, for whatever reason, does not want to continue the contract with the new owner.
LHFX and/or Hands-on BV loses its relevant licenses and/or otherwise seriously fails in its obligations to regulators (AFM and DNB).
TCX is no longer considered solvent based on the agreements made with TCX's shareholders, including the Dutch government, and must be liquidated in which case all of TCX's outstanding contracts will be settled.
If TCX terminates the currency hedge contract for any of these reasons, Lendahand converts the outstanding loan into a euro loan. From that moment on, the entrepreneur runs a currency risk, which indirectly leads to greater credit risk for you as an investor. This conversion takes place at the exchange rate at that time. Exchange rate fluctuations that affected the outstanding loan are thus made permanent. When the entrepreneur repays the euro loan, a settlement still takes place with TCX so that you as an investor receive exactly your deposit and the agreed interest.