{"investor_group_id":"1","date_received":"2025-12-20","question_original":"Are there step-in rights or protective clauses allowing investors to replace the developer in a severe underperformance scenario?","internal_owner_id":"5","draft_answer":"The documentation is intended to include protective clauses allowing bondholders (acting through the security agent and majority decisions) to trigger enhanced controls, appointment of an independent project manager or, in extreme underperformance scenarios, replacement of the current developer. These mechanisms will be designed with legal counsel to ensure they are enforceable in practice while still allowing the developer to operate efficiently in normal conditions.","final_answer":"No, the bond structure does not include formal step-in rights or contractual provisions allowing investors to directly replace the developer.\r\n\r\nHowever, in the event of a severe underperformance scenario or default, investors benefit from a comprehensive security package\u2014including first-ranking mortgages over valuable land parcels.\r\n\r\nThis means that bondholders (or their appointed representative) would have the legal ability to take possession and control of the pledged real estate assets, enabling them to recover value through direct sale, third-party development, or other strategic options.\r\n\r\nThis outcome-oriented protection mechanism has been intentionally prioritized over a complex governance structure, to ensure clarity, enforceability, and asset-backed recovery for investors.","status":"In progress","priority":"Medium","version":"V1 2025\u201112\u201122","update_date":"2025-12-23","linked_faq_id":"9","notes":"no","updated_at":"2026-01-15 13:36:40"}