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LENDING CRITERIA
Under the terms of the Trust Deed the following maximum loan to valuation
ratios (LVR) apply to loans made by the Company:
| Residential |
80% |
| Retail |
80% |
| Commercial |
80% |
| Industrial |
80% |
| Rural |
67% |
Construction & Development (of the end value of the development
with sufficient funds being retained to complete the project.) |
67% |
Notwithstanding the above limits set by the Trust Deed, for the term
of this prospectus, all rural loans will be limited to a maximum LVR of
60% and all other loans will be limited to a maximum LVR of 67%.
The Trust deed also provides that at the date of approval, the maximum
single loan amount will not exceed:
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the greater of $7.5 million or 25% of secured notes on issue where the secured notes on issue do not exceed $50 million;
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and where the secured notes on issue exceed $50 million, the lesser of $25
million or 15% of the secured notes on issue.
In addition to the above, the lending policy of the Company currently includes
the following:
-
Loans are not to exceed 3 years.
-
Lending rates are not reduced during the term of the loan.
-
All loans require a valuation of the security property not more than six
months old at the date of advance from a suitably qualified valuer instructed
by the Company.
-
In the case of construction loans the Company will instruct a quantity
surveyor where appropriate.
- No loans are made to Directors or Shareholders of the Company.
- All loans are monitored on a minimum monthly basis for any borrower default in making payments of principal and interest.
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