7.3.10 Material changes affecting a Borrower or Issuer

(1) This Rule applies if, in the reasonable opinion of an Authorised Crowdfunding Platform, a material change occurs relating to a Borrower or Issuer, its business, its proposal or the carrying out of its proposal.

(2) In this Rule, a "material change" means any change or new matter that may significantly affect the Borrower or Issuer's ability to meet its payment obligations under the loan agreement or its ability to carry out its proposal.

(3) If the material change occurs during the Commitment Period, an Authorised Crowdfunding Platform must:

• (a) notify committed lenders or Investors of the material change and require them to reconfirm their commitment within 5 business days; and
• (b) if reconfirmation is not provided within the period specified in (a), cancel the commitment.

(4) If the material change occurs after the Commitment Period, an Authorised Crowdfunding Platform must disclose prominently on its website:(a) details of the material change;

• (b) any change in the rights of the lenders and the Borrower, or the Investors and Issuer, arising from the material change; and
• (c) what steps, if any, the operator is proposing to take as a result of the change.

(5) A disclosure or notification under (3) or (4) must be made as soon as practicable after the Authorised Crowdfunding Platform becomes aware of the material change.