MKH Annual Report 2020

206 FINANCIAL STATEMENTS ANNUAL REPORT 2020 32. LOANS AND BORROWINGS (CONT’D) Secured revolving credit X RM21,000,000 (2019: RM21,000,000) is repayable on demand. The revolving credit is secured and supported as follows: (a) legal charge over the leasehold land and building of a subsidiary; (b) legal assignment over debt service account; (c) legal assignment over all tenancy and rent agreements; (d) specific debenture on fixed and floating charge over the leasehold land and building of a subsidiary; (e) deed of subordinate in respect of shareholders advances and loans to the subsidiary; (f) legal assignment of all of the subsidiary’s present and future rights, title and benefits in and under such insurance policies procure in respect of the charge; and (g) corporate guarantee of the Company. Term loan XI of RM4,174,542 (2019: RM4,325,416) is repayable in 300 monthly principal instalments of RM25,435 each, commencing November 2014 and is secured and supported as follows: (a) legal charge over the freehold buildings of a subsidiary; (b) first party open monies deed of assignment; and (c) corporate guarantee of the Company. Term loan XII of RMNil (2019: RM561,274) is repayable by 84 monthly principal instalments commencing 19th month from the date of first reimbursement or on 1 January 2014, whichever is earlier. The term loan is secured and supported as follows: (a) legal charge over the freehold land of a subsidiary; (b) a limited debenture by way of a fixed and floating charge over construction costs for a private and international school developed on the said freehold land; (c) legal assignment over a subsidiary and/or the customer’s rights and interest under an offer to lease and purchase; (d) legal assignment over all rents and other monies payables; and (e) corporate guarantee of the Company.