PAGE 1 OF 5 Issue Date: 31.12.

2003

DBS WORKPLACE ID No.: LMP002

SOLUTIONS
PROCEDURE AGED DEBTORS

1.0 PURPOSE

1.1 To ensure that all third party tenants pay rental and other charges promptly and in
accordance with the lease.

1.2 To ensure all debtors are pursued through the appropriate legal channels and related
documents are retained on file.

1.3 To make use of legal counsel as and when required.

2.0 DEFINITIONS / ABBREVIATIONS

3.0 PROCEDURE

3.1 See Process Flow in Appendix 1.

3.2 Scope

a) Tabulate the Aged Debtors and provide relevant comments for each debtor on a
monthly basis. Ensure that compliance for each debtor is in accordance with the
lease and all interest is charged, as endorsed by DBS.

b) Where a debtor does not or cannot meet its obligations, WPS will recommend
enforcement action for all outstanding debtors, and upon obtaining the approval
of DBS, implement the approved enforcement action to recover the outstanding
debtors and to keep DBS updated of the progress. Ensure that full
documentation safeguarding the interest of DBS is completed.

c) WPS to impose late interest charges as a deterrent to induce specific

performance.

d) WPS will ensure that appropriate follow up via legal counsel is undertaken.

e) WPS will encourage tenants for all new third party leases and renewals to adopt
GIRO payment

f) WPS will accurately update all relevant information in CTI.

4.0 DOCUMENTS / REFERENCES / APPENDIX

4.1 Income Write Off Form LMF010

5.0 RECORDS / RETENTION

 PAGE 2 OF 5 Issue Date: 31.12.2003

DBS WORKPLACE ID No.: LMP002

SOLUTIONS
PROCEDURE AGED DEBTORS

6.0 HISTORY LOG

Revision No. Revision Date Revised By Approved Amendment

By Summary
1 May 2002
2 31 December 2003
3 January 2004 Brigid Chan/ Chua Ming
Stella Tan Lee
APPENDIX 1
Aged Debtors
CRE is the Corporate approving authority
Notes
Note: Tenant's payment is late by 7-14 days
Note: WPS Finance should always confirm via
email/fax confirming discussions transpired and
to always keep LM informed. Use of "without
prejudice" should be stated on
correspondences.
Note: Ensure that interest calculation included in If payment still not receive by 28th day, LM to call/visit
First Reminder Letter. This to be undertaken by to investigate reason(s) for non-conformance. LM also
WPS Finance.
Process Forms/ Report Responsibility Checks
- WPS Finance to make first reminder call within the Aged Debtors Report WPS Finance LM
next 7-14 days to tenants whose payment is not
received on the specified date
- WPS Finance to make a Second Reminder Call on Notification Letter WPS Finance LM
the 15th day and to send out a Notification Letter
informing of late interest charges if payment is not
received within the next 7 days.
If payment still not received by the 22nd day, WPS First Reminder Letter WPS Finance LM
Finance to issue First Reminder Letter (cc: LM) to from WPS Finance to
request for settlement within 5 days and to continue to Tenant
impose recurring late interest. At the same time, LM to
make the First Reminder Call.
Final Reminder Letter LM/WPS LM
Finance
to send Final Reminder Letter (cc. WPS Finance) to
(a) inform outstanding amount, (b) to request for
payment within 3 days, (c) to inform of continue
imposition of late interest charges and (d) to notify that
we will be seeking legal recourse.
If there is still no sign of payment forthcoming, LM to Recommendation for LM DBS CRE
put Tenant on verbal notice of our seeking for legal Legal Action
recourse. At the same time, LM to seek concurrence
from DBS CRE for legal actins. LM to keep WPS
Finance updated.

Note: Refer to pro forma letter in templates,
forms & sample letters.
Note: Monthly updates are given to CRE via
face-to-face interaction prior to monthly report for
KPI purposes. LM is to input relevant updates as
necessary.
- Once DBS CRE's approval is obtained, LM to proceed LM DBS CRE
with recommended course of legal action.
- LM to furnish all relevant documentations (e.g. Relevant documents LM/ Legal LM
Tenant's name, Tenant's address/other correspondence and tenancy details to counsel
address and contact nos., statement of Accounts be furnished to A & G
reflecting period of which outstanding sum is derived for preparation of
and interest payable), interest rate, outstanding Letter of Demand
amount, Tenancy Agreement, Reminder letters and all
other relevant correspondences etc to legal counsel (A
& G) for preparation of Letter of Demand.
- LM to follow up with legal counsel and to continue to LM DBS CRE
monitor the situation. CRE to spot check.
If Tenant is in 2 months' arrears, LM to initiate Lawyers Letter of Demand from LM DBS CRE
to demand for payment within 3 days for 2 months' rent A & G
and interest. LM to continue to monitor case and CRE
to spot check.
- Depending on legal outcome WPS to recommend Write Off Form (Hint - LM DBS CRE
further action required. If further action is not required Use the
and the debt is to be written off, LM to prepare Write recommendation form
Off Form as per agreed format with CRE. for Legal Action, as the
detail in the report is
the basis for the write
off. A Separate form is
required)
- If it appears that the premises will be vacated, LM & PP
abandoned or surrendered by the tenant, LM to liase
with PP to see if space required by a BU.
- If space not required by a BU then LM to notified LM
Jones Lang LaSalle of impending vacancy for
preparation for marketing.
- LM to forwarded Write Off form to WPS Finance for Write Off Form LM/WPS Ensure that
processing upon approval to write off debt by CRE. LM Finance signing is in
to make a copy for the file. accordance
 to Bank
DOA.

- If tenant has abandoned the premises no entry to LM & Capital Regional

the premises can be made until formal possession has Works Operations
been taken. Any re entry will be undertaken by WPS Directors
FM under instruction from LM.

- LM to ensure that appropriate inventory and site Inventory and Site LM & WPS FM
inspection report is undertaken and received. LM in Inspection Report
conjunction with WPS Capital Works to recommend any
make good/reinstatement required together with costs
associated with it.

- LM to advise Jones Lang LaSalle that formal re entry LM

of space taken and where to collect keys for
inspections, together with any works that may be
undertaken.