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The Park Prepayments Protection Trust has been designed to increase protection for customers' prepayments in the event of Park Group going into administration or liquidation before the customers have received the products they have paid for.
The trust is administered by a trustee company, Park Prepayments Trustee Company Limited, which acts as trustee. This company has three directors, two of which are independent of Park. Releases of funds from the trust can be made in specified circumstances and requires the approval of the trustee in accordance with the rules of the trust, which are available on this website.
In particular, the rules of the trust allow for the release of funds to Park each year for use in the business, enabling it to meet its operational costs, if, in the directors' view, Park has sufficient funds to enable it to carry on its business on a solvent basis and deliver the products ordered. This is required to be confirmed by the company's directors each time a release of funds is required. This means that the level of protection for customers is likely to vary at different times of the year. Last year the total funds released on this basis were approximately 4% of the total value of orders received at the date of release.
Further releases of funds from the trust can also be made, subject to further confirmation by the company's directors, to purchase products for orders. All such products are held by the trust until required for delivery. Once the orders have been delivered, the remaining funds in the trust are released to the company.
If the company ceases to operate its business for any reason or goes into administration or liquidation, the available trust funds will be returned to the customers by the trustee subject only to the payment of specified administration costs. Park hopes that these additional arrangements reassure its customers of its continued commitment to providing the highest levels of customer service.