business lending general terms - nab · variable rate, and how rates apply to the facility. these...

BUSINESS LENDING GENERAL TERMS Effective 9 May 2020

CONTENTS1. Whattoread Page03

. Howwewillworkwithyou Page03

3. Gettingstarted Page03

4. UsingyourFacilities Page04

5. Payments Page04

6. Accounts Page05

7. Rates Page05

8. Fees,taxesandCosts Page06

9. Promiseswerelyon Page06

10.Thingsyouwilldo,ornotdo Page07

11.Default Page09

1.Changeinlaw,anti-moneylaundering,counter-terrorismfinancingandsanctions Page11

13.Oursecurity Page1

14.Changeswemaymake Page13

15.EconomicCostsandbenefits Page14

16.Communications Page14

17. Interpretation,assignmentandconfidentiality Page15

18.Meaningofwords Page15

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1. WhattoreadTheseBusinessLendingGeneralTermsapplytoallFacilitiesyouhavewithus.TheyshouldbereadwithyourBusinessLetterofOfferwhichliststheFacilitiesweareofferingyou.ForeachFacilitytheletterwillinclude:

• FacilityDetails(suchasthepurpose,pricing,limits,expirydateandkeyfinancialterms);and

• SpecificConditions(thesegoverntheuseofthattypeofFacility,togetherwiththeseBusinessLendingGeneralTerms).

TheFacilityDetailsandSpecificConditionsmaymakechangestohowtheseBusinessLendingGeneralTermsapplytoaFacility.

2. Howwewillworkwithyou2.1 OurpromisetoyouWewillactreasonablyandfairlytowardsyou,takingintoaccountyourandourrespectivebusinessinterests.Thatincludeswheneverweare:

• consideringanyrequestyoumake;or

•decidingwhethertogiveourconsentortoexercisearight,discretionorremedy;or

• settinganyconditionsfordoinganyofthosethings.

It’sworthnotingthatevenifwedon’tmakeadecisionordosomethingstraightaway,wemaystilldosolateron.Thisincludeswherewedelayordeferdoingso,orwetemporarilywaivearequirement.

2.2 OurcommitmenttogoodbankingpracticesDoingtherightthingisimportanttous.That’swhywe’veadoptedtheBankingCodewhichsetsthestandardsofpracticeandserviceforbanks.TheBankingCodeappliestoourrelationshipwithyouifyouareanindividualorasmallbusinessasdefinedintheBankingCode.

Youcanobtainfromus,onrequest:

• informationonourcurrentratesandstandardfeesandchargesrelatingtotheFacilities;and

•acopyoftheBankingCode.

TofindoutmoreabouttheBankingCode,visitnab.com.auandlookup“BankingCode”.

3. GettingstartedBeforeyoucanuseanyFacilitywewillneedthefollowing(unlesswe’vetoldyouotherwise):

• aproperlyacceptedBusinessLetterofOffer(itmaybeelectronicallysigned);

• allSecurityspecifiedintheBusinessLetterofOffer,satisfactorytous,withoriginaltitledocumentsandanythingelseweneedtoregistertheSecurityandhaveitasfirstrankingsecurity;

•detailsofanynominatedorlinkedtransactionaccountrequiredinconnectionwiththeFacility;

• ifwehaveaskedyoutoinsureanyofyourassets,evidencethatyouhaveobtainedinsurancewearecomfortablewith.Thatmayincludenotingourinterestonyourpolicy;and

•anythingelsethattheFacilityDetailsaskfor.

Also,wewillneedtobesatisfied:

•withanyvaluationwerequireofyourassets(thismustbeforavalue,andfromavaluer,wearecomfortablewith).Seeclause13fordetails;

•withour“know-your-customer”checks;

•withtitle,security,insolvencyandcorporatesearchesconcerningyou,anySecurityProviderandallSecurityassets.Wewillarrangethesesearchesandletyouknowifthereareanyissues;and

• youarenotinDefault.Seeclause11formoredetails.

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4. UsingyourFacilities4.1 BasicrequirementsforeachuseofaFacilityOncewe’vereceivedeverythingweneedforyoutostartusingaFacility,thebasicrequirementsforeachuseare:

• youhavegivenusaDrawdownNoticebeforehand(sowehavetimetocheckeverythingisinorderandmakeanyfundingavailable).UnlesstheapplicableSpecificConditionssayotherwise,wewillneedthisatleastBusinessDaysbeforetherequesteddateofuse;

• inthecaseofthefirstuseoftheFacility,therequesteddateofuseisnolaterthantheLastDateforDrawdown(ifany)setoutintheFacilityDetails;

• inallcases,therequesteddateofuseisaBusinessDaynolaterthantheFinalRepaymentDate;

• therequesteduseisforapurpose,andmeetsanyotherrequirement,asspecifiedintheFacilityDetails;

•usingtherequestedamountwon’tcauseanyFacilityLimittobeexceeded(andiftheFacilityhasdifferentcomponentsthatyoucanuse,itwon’tcauseanycomponentamountspecifiedintheFacilityDetailstobeexceeded);

• eachSecurityremainsvalidandenforceableand,inthecaseofaguarantee,noguarantorhasendedorlimiteditsobligations;and

• youarenotinDefault.Seeclause11formoredetails.

4.2 FacilityLimitsTheFacilityDetailsspecifyalimitforuseoftheapplicableFacility,andwhetherthatlimitcanchange.IfaFacilityhasdifferentcomponentsthatyoucanuse,theFacilityDetailswillalsospecifyeachcomponentamount,whichisthelimitforuseofacomponent.

Ifyouexceedanylimitwithoutouragreement,youmustpayustheexcessimmediately.Untilyoudo,wemaychargeyouinterestonthatexcessamountinaccordancewithclause7.4.

Ifyouaskusinadvance,wemayletyoutemporarilyexceedalimit.Theremaybeafeeforexceedingyourlimit,whichwewilltellyouaboutbeforewechargeit.Youwillthenneedtopayustheexcesswhenweaskyouoronthedatewe’vealreadyagreedyouwillpay.

4.3 ReviewingyourFacilitiesWemayreviewyourcompliancewiththeBankDocuments,yourfinancialpositionandthatofeachSecurityProviderperiodically(butatleastannually).

Youmustgiveusallrequestedinformation,documents,consentsandassistanceinconnectionwithareview.Followingareview,wemaycontinuetoprovidetheFacilitiesonthesameterms,orwemaynotifychangeswemaymakeunderclause14oraskyouandanySecurityProvidertovaryBankDocumentsortoenternewdocumentswithus.

5. Payments5.1 RegularpaymentsYoumustpayustheamounts,andatthetimes,setoutintheFacilityDetailsandSpecificConditions.

OntheFinalRepaymentDateyoumustpayalltheFacilityAmountOwing.IfyouarenototherwiseinDefault,wewillgiveyouatleast3monthswrittennoticeifweintendnottorenewanyFacilityaftertheFacilityExpiryDate.

IfanyamountthatwehavenotalreadytoldyouaboutbecomespayableundertheBankDocuments,wewillnotifyyouandprovideareasonabletimeforyoutopay.

5.2 Whatcurrencymustyoupayusin?YoumustpayusinAustraliandollarsunlesstheSpecificConditionssayotherwise.

Ifyoupayusinacurrencyotherthantheonewhichwasdue,wecanconvertyourpaymentintotheduecurrency.Wewillactreasonablywhenmakingtheconversion,butanyCostsinvolvedinconvertingcurrencieswillbeaddedtowhatyoumustpayus.Pleasecontactusifyourequireinformationaboutconvertingcurrencies.

Thisalsoappliesifwearedebitinganaccountofyourswhichisinadifferentcurrencytotheduecurrency.

5.3 PaymentrulesIfandwhenyouarerequiredtomakeapaymentunderaBankDocument,thatpaymentmustbemadeinfullwithoutanyset-off,counterclaim,withholdingordeduction,exceptasrequiredbylaw(forexample,whereacourtorderpermits).Ifyoudohaveadisputeaboutapayment,pleasecontactussowecanseektoresolvethiswithyouassoonaspossible.

Ifapaymentfallsdueonanon-BusinessDay,youcanpayusonthenextBusinessDayunlesstheSpecificConditionssayotherwise.

IfwehavenotspecificallyagreedinyourBankDocumentshowwearetoapplyaparticularpayment,wewillactreasonablyinapplyingpaymentswereceiveforanyFacilityAmountOwingagainstyourliabilitiestous.

5.4 PaymentsunderotherBankDocumentsInadditiontoyourobligationsunderclause5.1,youmustpayusallamountsthatyouarerequiredtopayusunderanyotherBankDocumentinrelationtocreditorfinancialaccommodationthatweprovidetoyou,atthetimessetoutinthoseotherBankDocuments.

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6. Accounts6.1 DealingwithyouraccountsTheSpecificConditionsmayrequireyoutonominateoropenaccountswithusinyournameinordertouseaFacility.ThisisforrecordingtransactionsfortheFacility.

Wemayalso,atanytime:

•openaccountswithusinyournametorecordcertaintransactionsrelatingtoyourFacilities;and

•debitanyaccountheldbyyou(oranaccountconductedbyusinyourname)withanyFacilityAmountOwingthatisdueandpayable,orwhichwemaybecomeliabletopayinrespectofaFacility,evenifthatcausesanaccounttobecomeoverdrawn.IftherearemultipleaccountsforyourFacility,wecanchoosewhichaccountwedebitfrom.

IfyouareinDefault,wedonotneedtogiveyounoticeofthis.

Whereanaccountisoverdrawn,theoverdrawnbalanceispayableandwemaychargeyouinterestontheoverdrawnamount:

• inaccordancewiththetermsandconditionsofthataccount;or

• ifthereisanoverdraftfacilitylinkedtothataccount,inaccordancewiththetermsandconditionsoftheoverdraftfacility(whetherornottheoverdrawnamountexceedsthefacilitylimit),includingclause7.4(iftheoverdraftfacilityisgovernedbytheseterms).

Youshouldpayustheoverdrawnbalanceofanaccountassoonasyoucantohelpminimiseyourcosts.

Wemaysometimeshavetoadjusttherecordeddateofadebitorcredittoanaccount.Wewillactfairlyandreasonablyindoingso.

6.2 AccountstatementsWewillgiveyouanystatementsforyourFacilitiesandaccountswithusasrequiredbytheBankingCode,andmaydosoelectronically.Statementsofaccountwillbeprovidedatleastevery6months,unlessweagreeadifferentfrequencyortheSpecificConditionssayotherwise.

7. RatesTheFacilityDetailsandSpecificConditionsspecifytheyearlyratesandchargesforaFacility.TheFacilityDetailswillsaywhetheranapplicablerateforaFacility(or,ifapplicable,foracomponentofaFacility)isafixedrate,caprate,floorrate,floatingrateorvariablerate,andhowratesapplytotheFacility.Thesedetailsalsoincludetheavailableperiodsthatratesapplyfor(sometimesreferredtoasinterestperiodsorpricingperiods).Whenaperiodends,thenextperiodstartsonthelastdayofthepreviousperiod.

7.1 InterestcalculationandchargingUnlesstheSpecificConditionssayotherwise,wewillcalculateapplicableinterestattheendofeachdayontheoutstandingloanordebitaccountbalanceforeachFacilityyouhavewithus,andchargeittoyouonthelastBusinessDayofeachmonthandontheFinalRepaymentDateforeachofyourFacilities.

Unlesspaidwhencharged,theinterestwillbedebitedtoanaccountyouhavewithusoraddedtotheFacilityAmountOwing.Thiscouldmeanyouhavetopayinterestonanyunpaidinterestchargedtoyou.

Dailyinterestiscalculatedattheannualinterestratedividedby365.ForforeigncurrencyFacilities,togetthedailyratewedivideby365ifinFijiDollars(FJD),PoundsSterling(GBP)orHongKongDollars(HKD),orby360inallothercases.

7.2 VariableratesandfloatingratesIfavariablerateorafloatingrateappliestoyourFacility(oranyapplicablecomponentofyourFacility),theratewillbemadeupofan“indicatorrate”plusoneormoremargins,eachasspecifiedintheFacilityDetailsandapplicableSpecificConditions.Avariablerateorafloatingratethereforemaychangefromdaytodaywithchangesintheindicatorrateorinamargin.

Youcancontactustofindouttheindicatorrate.Ifanindicatorrateislessthanzero,itwillbedeemedtobezerofordeterminingtheapplicablerateforyourFacility.

7.3 IndicativeratesAratelistedintheFacilityDetailsas‘indicative’ora‘currentrate’isaguideonly,andmaynotbetheactualratethatapplies.TheSpecificConditionsexplainhowtheactualrateisdeterminedandadvisedtoyou.

7.4 OverdueamountsandoverdrawnFacilitiesItisimportantthatyoupayallamountsontimeanddon’texceedyourFacilityLimits.Wemaychargeinterestinrespectof:

• anyoverdueamountofaFacilityAmountOwing;and

•anyuseofaFacilityaboveaFacilityLimit.

Wewillchargeinterestateither:

• aratethatappliestotherelevantFacility;or

• subjecttoclause7.5,ifnoapplicablerateotherwiseapplies(forexample,ifthereisnoapplicableratethatappliestoareimbursementorindemnityamountowingtous),ataratethatisnogreaterthanthehighestannualrateofinterestpayableunderanyFacilitythatyouhavewithus.

InterestattheapplicablerateunderthisclauseiscalculateddailyandischargedtoyouonthelastBusinessDayofeachmonthandontheFinalRepaymentDateforeachofyourFacilities.Unlesspaidwhencharged,theinterestwillbedebitedtoanaccountyouhavewithusoraddedtotheFacilityAmountOwing.Thiscouldmeanyouhavetopayinterestonanyunpaidinterestchargedtoyou.

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7.5 DefaultinterestmoratoriumforFarmersWewillcomplywithourobligationswithrespectto‘defaultinterest’intheBankingCode,includingiftheBankingCoderequiresusnottocharge‘defaultinterest’ordefaultfeesforwhateverreason.Inthisclause,‘defaultinterest’meanstheapplicationofahigherannualpercentagerateapplicableunderaloanbecauseyouareindefault,fortheperiodthatthedefaultcontinues.

ThismeansthatwhereyouareaFarmerandwehaveprovidedyouwithaFacilityforthepurposesofaFarmingOperation,wewillnotchargedefaultinterestoranydefaultfeesduringanyperiodinrespectofwhichthelandyouuseforthatoperationisindroughtorsubjecttonaturaldisaster.LandisindroughtorsubjecttonaturaldisasterifanAustralianStateorTerritoryGovernmentmakesadeclarationtothateffect,orwherewearesatisfiedonothergroundsthatthelandisindroughtorsubjecttonaturaldisaster.

YoushouldtellusassoonaspracticableifthelandyouuseforaFarmingOperationisindroughtorsubjecttonaturaldisaster.Fortheparagraphabovetoapply,youmayneedtotellusaboutyourcircumstances,andwewillrefunddefaultinterestordefaultfees(ifany)whichwerechargedduringthatperiod.

8. Fees,taxesandCosts8.1 FeesYouagreetopayuseachfee,charge,premiumorotheramountandatthetimes,specifiedintheBankDocuments.Unlessotherwisestated,theseamountsarenotchargedonapro-ratabasisandoncepaid,arenotrefundable.

8.2 TaxesandCostsYouagreetopayorreimburseusforalltaxesandreasonableCostsincurredfromtimetotimerelatingto:

• theBankDocuments,theFacilitiesyouhavewithusandanytransactionsunderthem;

• title,security,insolvencyandcorporatesearchesconcerningyou,anySecurityProviderandallSecurityassets;

•preparing,registeringandmaintaininganyfinancingstatementorfinancingchangestatement(eachasdefinedinthePPSLaw)inrelationtoaSecurity,ortakinganyotheractionthatinourreasonableopinionisnecessary;

•preservingandmaintainingtheassetsandpropertythesubjectoftheSecurity(suchasbypayinginsurance,ratesortaxesfortheproperty,includinganyinterest,penaltiesandfines);

• avariation,releaseordischargeofanyBankDocument,orgivingaconsentorapprovalorwaivingarequirementinconnectionwithaBankDocument;

•usactingorrelyingingoodfaithonanynoticeorothercommunicationfromyou(orgenuinelybelievedbyustobefromyou)includinganyemailandanyattachmenttoanyemail;

• aDefaultorusexercisingorenforcingourrights(orreasonablyconsideringorattemptingtodoso)undertheBankDocuments;and

• thecostsorremunerationof,oranyamountspayablebyustoanyExternalAdministratorappointedbyus.

8.3 YouindemnifyusYoualsoindemnifyus(andourofficers,employees,contractorsandagents),andmustpaytousondemandamountsequaltoanyloss,damageorCostsarisingasaresultoforinconnectionwith:

•anyofthepaymentandreimbursementobligationslistedinclause8.;and

•uspreservingorenforcingourrights(orreasonablyconsideringorattemptingtodoso)undertheBankDocuments.

Youdon’thavetopay,reimburseorindemnifyus:

• totheextentourfraud,negligenceormisconduct(orthefraud,negligenceormisconductofourofficers,employees,contractorsandagents)contributedtotherelevantloss,damageorCostsbeingincurred;and

• ifyouareaSmallBusiness,totheextentanyfraud,negligenceormisconductbyanExternalAdministratorappointedbyuscontributedtotherelevantloss,damageorCostsbeingincurred.

Weneednothaveincurredanexpenseormadeapaymentbeforeenforcingapayment,reimbursementobligationorindemnity.

8.4 GSTUnlessotherwisespecified,allamountsreferredtointheBankDocumentsareexclusiveofGST.IfweareliabletopayGSTorasimilartaxonasupply(asdefinedinrelevantGSTlegislation)madeinconnectionwithaBankDocument,youmustpayusanadditionalamountequaltotheconsiderationpayableforthesupplymultipliedbytheprevailingGSTrate.

9. PromiseswerelyonWearerelyingonsomeimportantpromisesfromyoutoprovidetheFacilities.ThesepromisesaregivenwhenyouoraSecurityProvidersignanyBankDocument,andagainwhileusingaFacility.

9.1 PromisesaboutyouandtheSecurityProvidersYoupromisethat:

• youholdallnecessaryapprovals,licences,registrationsandpermitsrequiredtorunyourbusiness;

• thefinancialinformationgiventousbyyouandeachSecurityProvider,oronyouroraSecurityProvider’sbehalf,givesanaccurateanduptodateviewofyourandeachSecurityProvider’sfinancialpositions;

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• youhavenotwithheldanyinformationfromuswhichmightreasonablybeexpectedtoaffectourdecisiontoprovideanyFacilitytoyou;

• youdon’thaveamaterialdisputewithanyone;

•enteringintotheBankDocumentsisforyourandeachSecurityProvider’sowncommercialbenefit;

• youarenotInsolvent;

•noSecurityProviderisInsolvent;

• youhavetoldusaboutallDefaultsyouareawareof;

•exceptasspecifiedinyourBusinessLetterofOffer,youarenotatrusteeofanytrustnorapartnerinapartnership;

• signingtheBankDocumentsandusingaFacilitywillnotcause:

– youtobreachanylawofAustraliaorelsewhere(includingsanctions)oranyagreementyouhavewithsomeoneelse;or

– anypaymentobligationyouowetoanyonetobecomedueearlierthanscheduled;

• youhavetoldusaboutanySecurityInterestgrantedbyyouoraSecurityProvidertoanyoneelse;

• you,andeachSecurityProvider,willnotremove,sellordisposeof,orgrantorpermitthecreationof,anyinterest(includingaSecurityInterest)inanypropertyorassetssecuredunderaSecurity(ortrytodoso)unlesswegiveourconsent;

• youarecurrentlycomplyingwithyourobligationstousunderthisAgreementandanyotherBankDocument;and

• ifyouhaveaSpecialisedFacilityoryouarenotaSmallBusiness,anyFinancialCovenantsarecompliedwith.

9.2 TrusteepromisesIfyouenterintoaBankDocumentasatrustee,yourliabilitytousissupportedbyyoupersonally,yourownassetsandthetrustassets.Youalsopromisethat:

• youaretheonlytrusteeofthetrustandnostepshavebeentakentoremoveyouastrustee;

• youhavepowerandauthoritytoenterintotheBankDocumentsandaredoingsoingoodfaith,foraproperpurposeandforthebenefitofallofthebeneficiariesofthetrust;

• youhavetherighttobefullyindemnifiedoutofthetrustassetsforobligationsincurredastrusteeundertheBankDocumentsaheadofthebeneficiaries’claims;

• youarenotinbreach(howeverdescribed)underthetermsofthetrust;

• youwillnotwithoutourpriorwrittenconsent:

– amendthetrustdeed;

– ceasetobetheonlytrustee;or

– breachyourdutiesastrusteeofthetrust.

• thetrusthasnotvestedorterminated;and

• truecopiesofthetrustdocumentshavebeenprovidedandtheydiscloseallthetermsofthetrust.

9.3 PartnershippromisesIfyouenterintoaBankDocumentasapartnerofapartnership,youpromisethat:

• youhavethefullpowerandauthorityonbehalfofthepartnership(includingunderanypartnershipagreement)tosignandcomplywiththeBankDocumentsasapartnertobindthepartnership,anddoingsoisfortheproperbusinessofthepartnership;and

• truecopiesofanydocumentedpartnershipagreementshave,ifrequestedbyus,beenprovidedbyyouandtheydiscloseallthetermsofthepartnership.

10. Thingsyouwilldo,ornotdoWearerelyingonyouragreementtodo,ortonotdo,certainthings,assetoutintheBankDocuments.ThisappliesforaslongasyouhaveaFacilityorotherwiseoweusanymoney.

Youwill:

• keepyourbusinessandfinancialrecordsingoodorder;

•notsignificantlychangethenatureofyourbusinesswithoutourconsent;

•maintaininsuranceforyourbusiness,assetsandpremisesforareasonableamount.Youwilltakeoutmoreinsuranceifweaskyouto;and

• letusknowstraightawayifyoubecomeawareofaDefaultorifyouthinkoneisreasonablylikelytooccur,orifanythinghappenswhichmeansthatanyofthepromisesinclause9becomesuntrue.

10.1 TrusteesIfyouenterintoaBankDocumentasatrusteeyouwill:

•giveuscopiesofallofthetrustdocumentsweaskfor;

•whenweask,exerciseyourrighttobeindemnifiedoutofthetrustassetstosatisfyanyliabilitiesundertheBankDocuments;and

• complywiththetermsofthetrustandensurethatyourrightsastrusteehavepriorityoverthebeneficiaries’interests.

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Youagreenottodoanyofthefollowingwithoutourwrittenconsent:

•endthetrust,ordistributetrustassets;

• changethetrustterms;

• changethetrusteeofthetrust;

• allowaSecurityInteresttoexistoveranytrustasset;

• (ifthetrustisaunittrust)issueunitstoanypersonwhoisnotaunitholderonthedateofyourBusinessLetterofOffer.

10.2 PartnershipsIfyouenterintoaBankDocumentasapartnerofapartnership,youmustmakesurethat:

•eachpartnercomplieswithitsobligationsasapartnerofthepartnership;

• thepartnership’srecordsareingoodorder;

• youobtainourwrittenconsentbefore:

– anychangesaremadetothepartnersorthetermsofthepartnership;

– thepartnershipisterminated,oritspropertydistributed;

– takingactionwhichcouldmakeitharderforapartnertocomplywithaBankDocument;or

– mixingpartnershipassetswithotherassets.

10.3 Self-managedsuperannuationfundsIfyouareatrusteeofaself-managedsuperannuationfundregulatedundertheSuperannuationLaws,youneedtocomplywiththoselaws.

IfyouwishtouseaFacilitytobuyanasset,youwillneedtosignandcomplywiththetermsofaSuperannuationDeedinaformacceptabletous.

OurrecoursetoyourfundwillbelimitedinaccordancewiththetermsoftheSuperannuationDeed.PleasenotethatthetermsoftheSuperannuationDeedprevailoveranyinconsistentterminanotherBankDocument.

DuetotherequirementsoftheSuperannuationLaws,despiteanyotherterminaBankDocumentyoumustnotredrawanyamountyourepayunderaFacility.ThereasonsyoumustnotredrawincludethatyoursuperannuationfundmaynotcomplywiththeSuperannuationLawsifaredrawoccursandtheremayalsobeadversetaxconsequencesforyoursuperannuationfund.Werecommendyouseekyourownindependenttaxation,legalandfinancialadvice.

IfyouhaveusedaFacilitytobuyanasset,youagreetonotoverdrawyouraccountsandtopay,ordirectyoursecuritytrusteetopay,usanyproceedsreceived:

• fromanyinsuranceclaimrelatingtotheasset,beforerepayingtheFacilityAmountOwing;and

• iftheassetiscompulsorilyacquired,soldorotherwisedisposedof,immediatelyfollowingreceipt.

10.4 Co-operationYouwillimmediatelygiveusanydocumentorinformationwereasonablyaskforanddowhatwereasonablyrequiretogivefulleffecttotheBankDocuments.

10.5 Whatifyoudon’tcomplywithyourpromises?EvenifyouarenotinDefaultatthetime,ifyouoraSecurityProviderdon’tcomplywithpromisesorotherobligationsinaBankDocument,wemaycontactyouandinviteyoutodiscussyoursituationwithusandtheoptionsavailabletoassistyoutomeetyourobligations.

Ifwedetermineafailuretocomplyiscontinuing,andisreasonablylikelytohaveasignificantnegativeimpacton:

• youoraGuarantorbeingabletomakeanypaymentdueunderaBankDocument;or

•ourcreditorsecurityrisk(orourabilitytoassessthese)–forexample,ourabilitytorecoveranyFacilityAmountOwingorthevalueofanySecurity;or

•ourlegalorreputationrisk,

wemayreviewyourFacilities.

Youmustgiveusallrequestedinformation,documents,consentsandassistanceinconnectionwithareview.

IfyouarenotaSmallBusiness,asaresultofareviewwemaynotifyyouthat:

•wearemakingachangetoyourFacilityinaccordancewithclause14;

•wewouldlikeyouandanySecurityProvidertoagreetootherchangestoaBankDocumentortoenterintoanewdocumentwithus.(AfailuretoagreetoachangeortoenterintoanewdocumentwithusmayleadtousnolongerwishingtocontinuetheFacilities);or

•wenolongerwishtocontinuetheFacilities,inwhichcaseyouwillneedtopayustheFacilityAmountOwingwithin90days(orsuchlaterdateweadviseyou).

•AnyreviewdoesnotaffectourrightsiflateryouareinDefault.

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11. DefaultDefaultsareeventsorcircumstances(sometimesoutsideyourcontrol)whichmayimpactuponyouroraGuarantor’sabilitytomeettheirrespectiveobligationsunderaBankDocument,orwhichareoutsideourcreditpolicies.

TherearetwotypesofDefault,andeachhasdifferentconsequencesandtimeframesbeforewemaybecomeentitledtotakeEnforcementAction:

• aPaymentDefault–seeclause11.1;and

• specificeventsofnon-monetarydefault(referredtoasAdverseEvents)–seeclause11..

11.1 PaymentDefaultsandconsequencesWhat is a Payment Default?APaymentDefaultoccursifyoudon’tmeetallyourpaymentobligationsunderthisAgreement,includingthoseinclause5.

What are the consequences of a Payment Default?IfaPaymentDefaultoccursyouareinDefault,butwewillgiveyouanoticethataPaymentDefaulthasoccurredallowingatleast30days(or7daysifyouarenotaSmallBusiness)toremedyit.

However,wemaygiveyouashorternoticeperiod,ornonoticeperiod(orifyouarenotaSmallBusiness,wedonotneedtogiveyouanynotice),if:

• thePaymentDefaultisunabletoberemedied;

• wehavealreadygivenyouaperiodtoremedyanAdverseEventunderclause11.andyouhavenotremediedthatAdverseEvent;

• itisreasonableforustodosotomanageamaterialandimmediateriskrelatingtothenatureofthePaymentDefault,yourparticularcircumstances,orthevalueoftheSecurity;or

• youoraGuarantorisInsolvent(butifyouareaSmallBusinessitmuststillbereasonableforustoacttomanagethematerialandimmediateriskasdescribedabove).

WecanimmediatelytakeanyoralloftheEnforcementActionslistedinclause11.4where:

• aPaymentDefaultisnotremediedwithintherequirednoticeperiodsetoutinanynoticegivenunderthisclause(orwithinanylongerperiodweallow);

•wegiveanoticeunderthisclausebutarenotrequiredtogiveanoticeperiod;or

•wearenotrequiredtogiveanotice.

11.2 AdverseEventsandconsequencesWhat is an Adverse Event?AnAdverseEventoccursifanyofthefollowingoccurs(whetherornotwithinyourcontrol):

• Insolvency:

– youareInsolvent;

– aGuarantorisInsolvent;

•Loss of capacity:youoranyGuarantornolongerhaslegalcapacity;

• Creditor enforcement:enforcementproceedingsaretakenagainstyouoraGuarantor,oryourortheirassets,byanothercreditor;

•Cross default:

– earlyrepaymentisrequiredunderaseparatefinancingarrangementyouoraGuarantorhaswithus,ordefaultbasedactionistakenagainstyouoraGuarantorbyus,duetoaneventofdefaultwhichisofthesamekindasanAdverseEventinthisAgreement;

– ifyouarenotaSmallBusiness,youare,oranyGuarantoris,indefault(howeverdescribed)underanySecurityorotherdocument,agreementorarrangementwithus;

•Breach of law:webelieve,onreasonablegrounds,thatyouoraGuarantorhavenotcompliedwiththelaworanyrequirementofastatutoryauthority,oritbecomesunlawfulforyouorustocontinuewithaFacility;

•Misrepresentation:youoraGuarantorgivesusinformationormakesarepresentationorwarrantytous(includinganypromisemadeunderanyBankDocuments)whichismateriallyincorrectormisleading(includingbyomission);

• Improper use of Facility:youuseaFacilityforapurposenotapprovedbyus;

• Improper dealings with assets:withoutourconsent,yourassetsoraGuarantor’sassetsaredealtwith,orattemptedtobedealtwithinbreachofthisAgreement,anySecurityoranyotheragreementwithus;

• Failure to provide financial information:youoraGuarantordonotprovidefinancialinformationrequiredbyanyBankDocuments;

•Failure to maintain licence or permit:youoraGuarantordonotmaintainalicenceorpermitnecessarytoconductyourrespectivebusinesses;

•Failure to maintain insurance:youoraGuarantordonotmaintaininsurancerequiredbyanyBankDocuments.Thisincludes,forexample,wheretheinsurancebecomesunenforceablebecauseofanyactionorinactionbyyou;

•Change of control:withoutourconsent,thereisachangeinthelegalorbeneficialownership,ormanagementcontrolofyouoraGuarantor,orofyouroraGuarantor’sbusiness;

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•Change of status, capacity or composition:withoutourconsent,thereisachangeinthestatus,capacityorcompositionofyouoraGuarantor;and

•Specialised Facilities and Financial Covenants:ifyouhaveaSpecialisedFacility,oryouarenotaSmallBusiness:

– any‘FinancialCovenant’specifiedinthisAgreementisnotcompliedwith;or

– aneventorcircumstancespecifiedinthisAgreementasan‘AdverseEvent’occurs.

IfyouarenotaSmallBusiness,thenreferencesto“Guarantor”abovearereadasreferencesto“SecurityProvider”.

What are the consequences of an Adverse Event?IfanAdverseEventoccurs,thenyouareinDefault.

YoumustpromptlygiveusanyinformationweaskforconcerninganAdverseEvent.

IfanAdverseEventhasoccurredwhichbyitsnatureismaterial,orwereasonablyconsiderhashad,orislikelytohaveasignificantnegativeimpacton:

• youoraGuarantorbeingabletomakeanypaymentduetousunderanyBankDocument;

•oursecurityrisk(orourabilitytoassessthis)–forexample,thevalueofanySecurity;or

•ourlegalorreputationriskwheretheAdverseEventisonedescribedaboveunder‘Breachoflaw’,‘Misrepresentation’or‘ImproperuseofaFacility’,

thenwemayissueanotice(“AdverseEventNotice”).

AnAdverseEventNoticewillsetoutthegroundsonwhichweconsiderthereisanAdverseEventandallowyouatleast30daystoremedytheAdverseEvent(ifitcanberemedied)ortosubmittousaplantoresolvetheAdverseEventtooursatisfaction.

If,aftertheperiodspecifiedintheAdverseEventNotice:

• theAdverseEventhasnotbeenremediedtooursatisfaction;or

• yourplantoresolvetheAdverseEventwasnotsatisfactorytous,

thenwemaygiveyouafurthernoticethattheAdverseEventhasnotbeenremediedandallowingatleast7days(oralongerperiodrequiredbylaw)toremedytheAdverseEvent.

However,wemaygiveyoushorternoticeperiodsthanthosedescribedaboveornonoticeperiods(orifyouarenotaSmallBusiness,nonotices),inrelationtoanAdverseEventwhere:

• itisreasonableforustoacttomanageamaterialandimmediateriskrelatingtothenatureoftherelevantAdverseEvent,yourparticularcircumstancesorthevalueoftheSecurity,forexample,ifwebecameawarethatyouwereattemptingtosellanyassetsorpropertysecuredunderaSecuritycontrarytothetermsofaBankDocument;or

• youoraGuarantorisInsolvent(butifyouareaSmallBusinessitmuststillbereasonableforustoacttomanagethematerialandimmediateriskasdescribedabove).

WecanimmediatelytakeanyoralloftheEnforcementActionslistedinclause11.4where:

•wegiveanoticeunderthisclauseandanAdverseEventisnotremediedwithintherequirednoticeperiodsetoutinthenoticegiven(orwithinanylongerperiodweallow);or

•wegiveanoticeunderthisclausebutwearenotrequiredtogiveanoticeperiod;or

•whereyouarenotaSmallBusiness,wehavedecidedinaccordancewiththisclausenottogiveanotice.

IfwearenotentitledtotakeanyoftheEnforcementActionslistedinclause11.4,thenwemayaskforfurtherinformationandwemayreviewyourFacilitiesinaccordancewithclause10.5.

11.3 WhatifanotherDefaultoccursduringtheremedyperiod?EvenifyouremedyaDefaultduringtheapplicableremedyperiodspecifiedinanotice,wemaystilltakeEnforcementActionifanotherDefaultofthesametypehasarisenduringthatperiod.

11.4 EnforcementActionsAfteranyapplicablestepsandtimeperiodsdescribedabove,whenyouareinDefaultwecantakeanyorallofthefollowing(eachan“EnforcementAction”):

•bynoticetoyou,makeanyFacilityAmountOwingimmediatelydueandpayablewithouttheneedtogiveanyfurthernoticeotherthanasrequiredbylaw;

•bynoticetoyou,canceltheFacilitieswithimmediateeffect;

•bynoticetoyou,cancelorreducealloranypartofaFacilityLimit(orifapplicable,acomponentlimit)withimmediateeffect;

• closeoutanytreasurytransactionswehaveenteredintoinrelationtoaFacility(suchashedging,moneymarketorcurrencytransactions)andset-offanyresultingamountsweoweyouagainstanyFacilityAmountOwing;

• continuetochargeinterestattheapplicableinterestrateorotherwiseinaccordancewithclause7.4onanyoverdueamounts(includinginterest);

• atourdiscretion,applyamountswereceiveinrespectofanyFacilityAmountOwingtoanypartoftheFacilityAmountOwingwhichyouarethenobligedtopay.Wemaydosoevenifyouaskordirectusotherwise,butwewillactreasonablyinthecircumstancesandinaccordancewiththelaw;

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• sueyouforanyFacilityAmountOwing;and

•enforceanySecurity.

TheorderinwhichweenforceanySecuritymaybeaffectedbytheBankingCode.ForexamplewemayberequiredtotakeenforcementactionunderaSecurityprovidedbyaBorrowerbeforewetakeenforcementactionunderaSecurityprovidedbyaGuarantor.

11.5 ConcurrentnoticesWe,oranExternalAdministrator,maygiveyouanyothernoticethatisrequiredbylawinconnectionwithenforcingaSecurityInterestatthesametimeaswegiveyouanoticeunderthisclause11.

11.6 AppointmentofconsultantsWemayappointaconsultantatanytimetoinvestigateandreporttousonyouroraGuarantor’sbusiness,andoncomplianceofanypartywiththeBankDocuments.

If,basedonwhatweknoworsuspect,wethinkaDefaultexistsorislikelytoexistinfutureyouwill,ifweask,payourreasonableCostsinrelationtotheconsultant,orappointaconsultantwenominateorapproveontermsacceptabletous.WecanchargeallrelatedCoststhatyouhavetopaytoanyofyouraccounts.

Youwillhelpusandtheconsultantassoonasyouareaskedto.

WhereyouhavepaidtheCostsoftheconsultant,wewill(unlesstheconsultantisalawyer)giveyouacopyofourinstructionstotheconsultantandextractsoftheirreportinaccordancewithindustryguidelinespublishedbytheAustralianBankersAssociationInc.

Investigatedpartiesarenotrequiredtoadoptanyrecommendation,butiftheydowearenotresponsibleforit.

11.7 Set-offandcombiningyouraccountsWemayatanytime:

• combineandamalgamateanytwoormoreaccountsheldbyyou(oranaccountconductedbyusinyourname)withus;

• setoffortransferanycreditbalanceonanysuchaccounttowardssatisfactionofanyamountsdueandowingbyyoutous(whetheraloneorwithanyotherperson);and

•doanythingreasonablynecessarytoenableustodothis,suchasconvertingcurrencyusingourexchangerate.

However,ifyouareaSmallBusiness,wewillnotexercisetheserightsunlesseitherwegiveyounoticeorthereisaDefault.Otherwise,wewillnotifyyouafterexercisingtheserights.

11.8 Overdraftoron-demandfacilityIfyouhaveanoverdraftorotheron-demandfacility(suchasacommercialcardsfacility),wecanrequirerepaymentofthaton-demandfacilityatanytime,whetherornotthereisaDefault.

Ifyoudonotrepayanon-demandfacilitywhenweask,thatwillbeaPaymentDefaultunderanyotherFacilitiesthatyouhavewithus.However,wewillcomplywithclause11.1forthatPaymentDefault.

12. Changeinlaw,anti-moneylaundering,counter-terrorismfinancingandsanctions

12.1 ConsequencesofachangeinlawIfthelawchangesandwereasonablybelievethatitwillbeagainstthelawforustoprovideorcontinuetoprovideaFacilitytoyou,wewill:

• letyouknowassoonaswecan;and

•workwithyoutoensurethelawisbeingcompliedwith.

Ifwearerequiredbylawtoaskyoutopaybacksomeoralloftheamountsyouoweuswewillgiveyouasmuchnoticeasthelawallows.

12.2 IncreasedcostsorreducedamountsreceivedIfanylaworprudentialstandards,policiesorrequirementsapplyingtouschangesandwereasonablybelievethattherewillbe:

•amaterialincreaseinthecosttousofprovidingormaintainingtheFacilities;or

•amaterialreductionintheeffectivereturnoramountweareabletoreceiveinrelationtoaFacility,

thenwewillletyouknowassoonaswecanandtrytoeliminateorreducetheamountoftheadverseimpactonus.

Totheextentthatwecannoteliminateorreducetheamountoftheadverseimpactyoumustcompensateusforthatamount.

12.3 Anti-moneylaundering,counter-terrorismfinancingandsanctionsYoumustcomply,andmustensureeachSecurityProvidercomplies,withallapplicablerequirementsrelatingtoanti-moneylaundering,counter-terrorismfinancingorsanctions.

Wemaytake,oravoidtaking,anyaction(forexample,wemaydelay,blockorrefusetoprocessanypaymentorothertransaction)ifinourreasonableopiniontodootherwisemay:

•breachanylawofAustraliaorelsewhere(includinganysanctions);or

• resultinafinebeingimposedon,oranyotherregulatoryactionbeingtakenagainst,us,anyofoursubsidiaries,anybodycorporatethatisdirectlyorindirectlyrelatedtous,oranyentitywithwhomwehaveenteredintoarrangementsinconnectionwithanyservicesprovidedundertheFacilities.

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12.4 RegulatoryeventsFromtimetotime,ourabilitytoprovidetheFacilitiestoyoumaybeinterrupted,prevented,delayedorotherwiseadverselyaffectedbyregulatoryeventssuchastheapplicationofanti-moneylaunderingorcounter-terrorismfinancinglawsorsanctions,changesinlaworprudentialstandards,policiesorrequirementsapplyingtous,orbytheactionsofaregulatoryauthority.

Ifyouareaffectedby,orsufferalossduetoaregulatoryevent,we,oursubsidiariesandrelatedbodiescorporatearenotliableandarenotrequiredtochallengeormitigatetheeffectoftheregulatoryeventonyouoronus.

Ifweareliable,ourliabilityislimitedtore-supplyingtheFacilitiestotheextentthatweareabletoandareallowedtobylaw.

Youagreethatwecanshareinformationwithotherfinancialinstitutionsandregulatoryauthoritiesaboutyou,theFacilities,aregulatoryeventoranotherpersonconnectedwithanyofthem.

Ifweask,youagreetopromptlyprovideuswithanydocumentorinformationaboutyourself,theFacilitiesoranypersonconnectedwithyouortheFacilitiesandtohelpusmanagerisk,complywithourobligationsorobtainanyconsentweneed.

13. Oursecurity13.1 ValuationsAtanytimewereasonablyrequirewemayinstructavaluertovalueanySecurityandanypropertythatisthesubjectofanySecurity.Avaluationmaybeobtainedinordertoassess:

• thevalueofassetsthesubjectofaSecurityorproposedSecurity;

•ourcreditandsecuritypositionforexistingorprospectiveFacilities;or

• compliancewithFinancialCovenants(whereapplicable)oranyotherconditionsinthisAgreement,

•orforanyotherpurposewetellyouabout.

Youagreeto:

• co-operatewiththevaluer;

•paywhenaskedanyfeesandchargesinconnectionwiththevaluation;and

• complywitheveryreasonablerequesttoprovideassistancetothevaluerincludingprovidingauthorisations,relevantinformation,records,accesstoindividuals,premisesandbusinessequipmentusedintheconductofyourbusiness.

Unlesswehavecommencedenforcementproceedings(asdefinedintheBankingCode),whereyouhavepaid(orreimbursedus)foravaluationofcommercialoragriculturalrealproperty,wewillprovideyouwithacopyofthatvaluationandtheinstructiontoourvaluer.Wemayrequireyoutoacknowledgeinwritingthatyouacceptourreasonablelimitationsonyouruseofthevaluationbeforeweprovideittoyou.WewillalsogiveyouthebenefitofanyadditionalrightsyouhaveundertheBankingCodetoreceivevaluationinformationfromus.

PleasenotethatweandthevaluerarenotresponsibleorliabletoyouoranySecurityProviderforthecontentsofavaluation.

13.2 ProtectingoursecuritypositionIfwethinkthataPPSLaw:

•appliesorwillapplyto,orinconnectionwith,aBankDocument;and

•does,ormayadverselyaffectoursecurityposition,ourrightsorobligationsinconnectionwithaBankDocument,

wemayaskyouandyouwillhelpusimmediatelyatanytimeincludingby:

•providinguswithallinformationwerequestandtakingallactionstohelpusperfecttheSecurity;

• amendinganyBankDocumentorexecutinganynewBankDocument;and

• tocontinuously,orasandwhenwerequireyouto,perfectanySecuritysoithaspriorityandprotectionfromloss,terminationanddiminution.

13.3 PersonalpropertysecuritypoliciesandstepsYouwillpromptlytakeallreasonablestepswhichareprudentforyourbusinessinconnectionwiththePPSLaw,suchasregisteringanySecurityInterestsyoureceiveintheordinarycourseofyourbusiness.Whereappropriateorwhenweaskyouto,youwillidentify,protectandachievethehighestpriorityreasonablyavailableforyourSecurityInterests.

13.4 ChangeofdetailsYoumustnotifyusinwritingatleast14daysbefore:

• youoranySecurityProvider,trustorpartnershipchangesitsname;

•anyABN,ACN,ARBNorARSNallocatedtoyouoranySecurityProvider,trustorpartnershipchanges,iscancelledorceasestoapplytoit(orifitdoesnothaveanABN,ARBNorARSN,oneisallocated,orotherwisestartstoapplytoit);or

• youoranySecurityProviderbecomestrusteeofatrust,orapartnerofapartnershipnotstatedinyourBusinessLetterofOffer.

13.5 PPSLawwaiverYouwaive,totheextentpermittedunderthePPSLaw,yourrighttoreceiveanynoticeswearerequiredtogiveunderthePPSLaw.

13.6 PPSLawdisclosureYouagreenottodiscloseorauthorisethedisclosuretoanypersonanyinformationofthekinddescribedinsection75(1)ofthePPSLawortowaiveyourdutyofconfidencetous.

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14.ChangeswemaymakeWemayneedtomakechangestoyourFacilitiesfromtimetotime.Wemaymakesomechangeswithoutyourconsent,somechangesoccurautomaticallyandsomechangesrequireyouragreement.Wepromisetoactreasonablywhenwemakeanychanges.

14.1 TypesofchangeswemaymakeWemaymakethefollowingtypesofchangeswithoutyourconsent:

• introduceanewfee,chargeorpremium;

• changetheamountofafee,chargeorpremium,howitiscalculatedorwhenitischarged;

• changearate(otherthanafixedrate)includingbychangingorreplacingtherelevantindicatorrateoracomponentusedindeterminingarate,orbychanging,addingorremovingamargin(includingbymakingamarginpositiveornegative);

• changeyourrepaymentobligations,includingtheamountofortimingforanyrepayment,oryourrepaymenttype;

• changethefrequencywithwhichinterestisdebitedorcredited;and

•makenecessarychangesduetoachangeinlaw,tocomplywithorourprudentialobligationsasabank,orasrequiredbytheBankingCode.

AnyotherchangestoaBankDocumentwillneedyouragreement.

14.2 WhenwewillnotifyyouofchangeswemakeWewillgiveyouatleast30days’noticeofachangewemake,exceptasfollows:

• Ifwechangeaninterestrate,includinganyindicatorrate,wewillcomplywiththenoticerequirementsintheBankingCodeandtellyounolaterthanthedateofthechange–unlesswearenotabletobecausetheinterestrateiscalculatedaccordingtoamoneymarketorotherexternalreferencerate,orarateotherwisedesignatedasavariableorfloatingrate.

• Ifwereasonablyconsiderachange(otherthanachangetointerestratesorrepayments)willbeunfavourabletoyouandthesamechangeisnotbeingmadetosimilarfacilitiesofourothersmallbusinesscustomers,wewillgiveyouatleast90days’priorwrittennoticeofthechange(however,wemaygiveyouashorternoticeperiod,ifitisreasonableforustomanageamaterialandimmediaterisk.

• Ifthereisachangeto,orintroductionofagovernmentchargethatyoupayunderyourFacility,wewilltellyouaboutitreasonablypromptly(however,wedonothavetonotifyyouifitispublicisedbythegovernment).

• Ifthereisachangethatreducesyourobligations(forexample,areductioninarateorfee),wemaygiveyouashorternoticeperiod,ornonoticeperiod,ifnotinconsistentwiththeBankingCode.However,wewillgiveparticularsofanysuchchangeassoonasreasonablypossible,evenifthisisafterthechangetakeseffect.

• Ifrepaymentamountshavechangedasaresultofachangeinavariablerate(forexampleaBusinessOptionsLoanwhereavariablerateapplies),wemaynotprovidenoticeofthechangeinrepaymentamount.Achangeinrepaymentamountsasaresultofachangeinavariableratemaynothappenimmediately,butwillgenerallyoccurupto1monthsafteravariableratechange.Incaseswhereavariableratehaschangedbuttherepaymentamounthasyettobere-calculatedtoreflecttheratechange,theportionofyourrepaymentamountallocatedtopayingdownyourprincipalmaychangeuntilsuchtimetherepaymentamounthasbeenre-calculated.Forexample:

° Ifthevariablerategoesup,yourrepaymentamountwillgenerallygoupinthe1monthperiodaftertheratechanges.Untilthathappens,yourtotalrepaymentamountwillnotchange,butthebreakdownofyourinterestandprincipalrepaymentswill–theportionofyourrepaymentamountallocatedtopayingdownyourprincipalwillgodown(andyouwillpaymoreinterest).

° Ifthevariablerategoesdown,yourrepaymentamountwillgenerallygodowninthe1monthperiodaftertheratechanges.Untilthathappens,yourtotalrepaymentamountwillnotchange,butthebreakdownofyourinterestandprincipalrepaymentswill–theportionofyourrepaymentamountallocatedtopayingdownyourprincipalwillgoup(andyouwillpaylessinterest).

Ifyourequiremoreinformationaboutyourrepayments,orwanttochangeyourtotalrepaymentamount(forexample,ifyouwanttoincreaseyourrepaymentamountsothatyouarepayingthesameamountofprincipalwheninterestratesgoup),pleasecontactus.

14.3 HowwewilltellyouaboutchangeswemakeWewillnotifyyouofchangeswemakebyeitherwritingtoyouorputtinganadvertisementinnationalorlocalmedia.

14.4 Whatyoucandoifyoudon’tlikeachangeIfyoudon’tagreewithachangewemakeorareproposingtomake,youmayterminatetheFacilitiesbynotifyingusinwritingandrepayinguseachFacilityAmountOwing.EconomicCostsmaybepayable(seeclause15).

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15. EconomicCostsandbenefitsAn‘EconomicEvent’occursifallorpartofaFacilityisbeingre-pricedbyagreement,orbecomespayableoriscancelled,repaidordischargedearlyforanyreason(includingfollowingaDefault).

TherearenoearlyterminationfeesonyourFacilitiesunderthisBusinessLetterofOffer.However,ifanEconomicEventoccurs,wemayneedtoliquidatefundsordepositsorterminate,reverseorvaryanagreement,arrangementortransactionweenteredintotohedge,fixorlimitoureffectivecostoffundingormaintainingallorpartofaFacility.Inthatcase,wewilldetermineandadviseyouofanyresultingEconomicCoststous,orwhetherthereisabenefittoyouofanynetamountofreturnsandgainsobtainedbyus,includingbecauseofanychangesinratesapplicabletoaFacility(allotherthingsbeingequal).

YoumustpayustheamountofanyadvisedEconomicCosts,andifapplicabletoyourFacility,wewillpayyoutheamountofanynetreturnsandgainsweobtain.

Please note that the amount of Economic Costs you may need to pay following an Economic Event can be significant, and will increase the Facility Amount Owing.

16. Communications16.1 HowwewillcommunicateNotices,statements,certificatesandothercommunicationsfromuscanbe:

•giventoyoupersonally;

• leftatorpostedtoyouraddresslastnominatedbyyou;

• sentbyfacsimiletoyourfaxnumberlastnominatedbyyou;

•giventoyoubynotifyingyouthroughanelectronicserviceprovidedbyusthatinformationisavailableelectronically;

•publishedinthepressoratnab.com.au;or

•giventoyouelectronicallyby:

° shortmessageservice(SMS)toyourmobiletelephonenumberoremail;or

° notifyingyoubyshortmessageservice(SMS),orbyemail,ofinformationonourwebsite.

Wewilluseyourlastnominatedmobilenumberoremailaddressfornotices.Youmaychangeyournominatedemailaddressormobilenumber,bygivingusnoticeorcallinguson13101.Onrequest,wewillprovideyouwithpapercopiesofanynoticesorcommunicationssenttoyou(sevenyearsfromthetimetheinformationisgiven).Youmustcheckyouremailandmobilephoneregularly.

YourSpecificConditionsalsomayspecifyhowwewillcommunicatesometypesofinformationtoyou.

Ifwesendadocumentorcommunicationtoyoubyordinarypost,youaretakentohavereceivedit7BusinessDaysafteritwasposted.

Adocumentorcommunicationsentbyfacsimileisreceivedbyyouatthetimeanddateshownonthedeliveryreceipt.

Adocumentorcommunicationsentbyanotherformofelectroniccommunication(suchasSMSorelectronicmail)istakentobereceivedwhenitentersyourinformationsystemasrecipient.

Adocumentorcommunicationpublishedinthepressorontheinternetistakentobereceivedbyyouwhenitisfirstpublished.

16.2 CommunicationsfromyouWrittencommunicationsfromyoumustbesigned(includingelectronically)byyou(orbyadirectororanotherpersonwehaveapprovedinthecaseofacompanyoranotherentity).

16.3 TelephonerecordingWemayrecordsomeconversationswithyou.Wewillnotifyyoubeforewedosoorusetherecordingforanyexternalpurpose.

16.4 ContactingusforfurtherinformationForfurtherinformationcall13101orvisitnab.com.au.

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17. Interpretation,assignmentandconfidentiality17.1 HowthisdocumentistobeunderstoodWehavetriedtomaketheBankDocumentsfairandreasonable.However,ifanylawappliestomakepartofaBankDocumentinoperativethentheintentionisforittobeinterpretedinawaywhichpreservesasmuchoftheBankDocumentanditsoperativeeffectasthelawallows.

17.2 ApplicablelawThisdocumentisgovernedbythelawsofthestateorterritorywheretheofficeissuingthisdocumentislocated.Youagreetoanycourtdisputebeingconductedinthecourtsofthatplace.

17.3 AssignmentWemayassignorotherwisedealwithourrightsundertheBankDocumentsinanywayweconsiderappropriate(subjecttotheBankingCodeifyouareasmallbusiness).Ifwedoso,youagreetohelpusincludingbysigninganydocumentorprovidingconsent.Wemaydiscloseanyinformationordocumenttodoso.YoucannotassignyourrightsundertheBankDocumentswithoutourpriorwrittenconsent.

17.4 ConfidentialityWeandyouagreetokeepanyinformationprovidedtoeachotherandtheBankDocumentsconfidential.Weandyouwillonlydisclosethatinformation:

• toourrespectiveofficers,employees,legalandotheradvisersandauditors;

• toanExternalAdministrator;

• tothirdpartieswiththeconsentoftheotherparty(suchconsentnottobeunreasonablywithheld);

• ifrequiredbytherulesofanyrelevantfinancialmarketorifallowedorrequiredbylaw;or

• ifthereisaregulatoryevent(asdescribedinclause1).

Wemayalsodisclosethatinformation:

• ifweareassigningorotherwisedealingwithourinterestunderanyoftheBankDocumentsorproposingtodoso;

• toregisterormaintainourSecurity;

• toenforceourrightsunderanyoftheBankDocuments;or

• toanySecurityProvider(ortoapersonwebelievemaybecomeaSecurityProvider),butonthesameconfidentialbasissetoutabove.

17.5 LawandlegislationUnlessthecontextrequiresotherwise,areferenceintheBankDocumentstolegislationorotherlaworaprovisionofthemincludesregulationsandotherinstrumentsunderthem,andanyconsolidation,amendment,re-enactmentorreplacement.

18. MeaningofwordsThemeaningsofsomewordsusedinyourBusinessLetterofOfferandtheseBusinessLendingGeneralTermsaresetoutbelow,ormayotherwisebeexplainedinyourBusinessLetterofOffer.

Adverse Eventhasthemeaninggiveninclause11.

thisAgreementmeanstheagreementbetweenyouandusinrelationtotheFacilities,assetoutintheapplicableBankDocuments.

Bank Documentsmeans:

• yourBusinessLetterofOffer;

• thedocumentslistedatthestartofthatletter(includingthisAgreement,theseBusinessLendingGeneralTerms,SpecificConditionsandtheBusinessBankingFees:AGuidetoFeesandCharges);

• anySecurity;and

•anyotherdocument,agreementorarrangementyouhavewithusfromtimetotime.

Banking CodemeanstheversionoftheBankingCodeofPracticeaspublishedbytheAustralianBankingAssociationwhichapplies,orthatweagreeapplies,toyourFacilities.

Banking DaymeansadayfromMondaytoFridayonwhichweareopenforbusinessinSydney.

Business DaymeansadayfromMondaytoFridayonwhichweareopenforbusinessinatleastoneofourbranchlocationsinAustralia.

Corporations ActmeanstheCorporations Act 2001 (Cth).

Costsmeansourcosts,charges,fees,expensesandotheroutgoings.Thisincludeswhereweappointadvisers,lawyersorprofessionalconsultantsandthereasonableexpensesincurredbyourstaffandfortheuseofouroperations,premisesandresources.

Defaulthasthemeaninginclause11.

Drawdown Notice meansanoticerequestinguseofaFacility,orotherwisegivinginstructionsinrelationtoaFacility,inaformandsubstanceacceptabletous.

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Economic CostsmeansanyCostsandlossesfollowinganEconomicEvent.

Economic Eventhasthemeaninggiveninclause15.

Enforcement Actionhasthemeaninginclause11.4.

External Administratormeansareceiver,receiverandmanager,administrator,liquidator,provisionalliquidator,controllerorbankruptcytrustee.

FacilitymeansanybankproductweagreetoprovidetoyouunderyourBusinessLetterofOffer.

Facility Amount Owingmeansallmoneywhichyou(whetheraloneornot)are,oratanytimemaybe,liabletopayusunder,orinconnectionwith,aFacility.

Facility DetailsmeansthedetailsforeachFacilityinyourBusinessLetterofOffer.

Facility Limit meansafinanciallimitforuseofaFacilityoracomponentofaFacility,assetoutintheFacilityDetails.

Farmermeansaperson(whetheranindividualpersonoracorporation)whoissolelyorprincipallyengagedinaFarmingOperationandincludesapersonwhoownslandcultivatedunderashare-farmingagreementandthepersonalrepresentativesofadeceasedfarmer.

Farming Operationmeansabusinessundertakingthatprimarilyinvolvesoneormoreofthefollowingactivities:

• agriculture(forexample,cropgrowingandlivestockorgrainfarming);

• aquaculture;

• thecultivationorharvestingoftimberornativevegetation;or

•anyactivityinvolvingprimaryproductioncarriedoutinconnectionwithanactivityreferredtointheabovebulletpoints.

Financial CovenantmeansacovenantspecifiedinthisAgreementwhichrequiresyoutocomplywith,orreporton,specifiedfinancialparameters,typicallymeasuredagainstyourfinancialresultsinyourfinancialstatements.Ifyouare:

• aSmallBusiness,youmayneedtoreportonFinancialCovenantstohelpusmonitorourcreditandsecurityposition,assetoutinyourBusinessLetterofOffer;and

•notaSmallBusinessoryouhaveaSpecialisedFacility,youmustcomplywithaFinancialCovenantspecifiedinthisAgreement,asnotedinclause9.1.

Final Repayment Datemeans,inrespectofaFacility,theearlierof:

• theFacilityExpiryDate(ifany)specifiedintheFacilityDetails,oralaterdateasnotifiedbyustoyouinwriting;

• thedatetheFacilityLimitiscancelled;or

• thedatetheFacilityisterminatedorotherwiseends,

orifthatdayisnotaBusinessDay,thenextBusinessDay(unlessotherwisestatedintheSpecificConditionsforthatFacilityorunlessotherwiseagreed).

GSTmeansgoodsandservicestaxasimposedundertheA New Tax System (Goods and Services Tax) Act 1999 (Cth).

Guarantormeansanypersonwhoprovidesaguaranteetous.

ApersonisInsolventif:

• theyare(orstatetheyare)insolventoraninsolventunderadministration(eachasdefinedintheCorporationsAct);

• theyhaveanExternalAdministratorappointedtothemoranyoftheirassets,areinliquidation,inprovisionalliquidation,underadministrationorbeingwoundup;

•execution,distress,oranyotherprocessisattemptedorimposedregardinganyoftheirundertaking,propertyorassets;

• acompromise,arrangement,assignment,moratoriumorcompositionisproposedwith,orbecomeseffectiveinrelationto,theircreditorsoranyclassoftheircreditors(ineachcase,otherthantocarryoutareconstructionoramalgamationwhilesolventontermsapprovedbyus);

• anapplicationororderhasbeenmade(and,inthecaseofanapplication,itisnotstayed,withdrawnordismissedwithin30days),resolutionpassed,proposalputforward,oranyotheractiontaken,ineachcaseinconnectionwiththem,whichispreparatorytoorcouldresultinanyofthethingsreferredtoabove;

• theyaretaken(undersection459FoftheCorporationsAct)tohavefailedtocomplywithastatutorydemand;

• theyarethesubjectofaneventdescribedinsection459C()(b)orsection585oftheCorporationsAct;

• theyareanaturalpersonwhocommitsanactofbankruptcywithinthemeaningoftheBankruptcy Act 1966 (Cth);

• theyareotherwiseunabletopaytheirdebtswhentheyfalldue;or

• somethinghavingasubstantiallysimilareffecttoanyofthethingsreferredtoabovehappensinconnectionwiththemunderanylaw.

Our,WeandUsmeansNationalAustraliaBankLimitedABN1004044937anditssuccessorsandassigns.SometimeswerefertoourselvesasNAB.

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Payment Defaults aredescribedinclause11.

PPS LawmeansthePersonal Property Securities Act 2009 (Cth).

Securitymeansthe‘Security’specifiedinyourBusinessLetterofOfferoranyFacilityDetails,andanyotherSecurityInterestgrantedtoorheldbyusfromtimetotimeinconnectionwithaFacilityoranyFacilityAmountOwing.

Security Interestmeansadocumentoractcreatingasecurityforthepaymentofmoneyorperformanceofanobligation.Thisincludesa‘securityinterest’asdefinedinthePPSLaw,andanygeneralsecurity,specificsecurity,mortgage,charge,lien,pledge,guarantee,titleretention,rightofset–off,assignmentofincome,garnisheeorderormonetaryclaimandflaweddepositarrangements.

Security ProvidermeansaGuarantorandanyotherpersonwhoprovidesaSecuritytous.

YouareaSmall Business,whenthetotalofourbusinessfinancecreditexposurestoyouandyourrelatedentities(thatarebusinesses)islessthan$5,000,000.Thisincludesthetotalofallyourexistingdebttous,anyundrawnamountsinrelationtothatdebt,andanyothercreditorfinancialaccommodationprovidedorbeingappliedfor.Your‘relatedentities’arethosewhichfallwithinthedefinitionof‘relatedentity’undersection9oftheCorporationsActandcouldinclude,forexample,thoseentitieswhichwereasonablydetermineareundercommonownershipcontrolormanagementcontrolwithyouorbyyou.Wemaymakeanysuchdeterminationsunderouraggregateriskexposurepolicies.

Specialised FacilitymeansaFacility:

•usedtofundpropertydevelopment;or

•usedtofundaspecialisedlendingtransaction,whichbecauseofitsnature,requiresadditionalcovenantstohelpusmanageourrisks,includingmarginlending,loanstoself-managedsuperannuationfunds,bailment,invoicediscounting,constructionfinance,foreigncurrencyloansandtailoredcashflowlending.

Specific Conditions–thesearesetoutforeachFacilityinyourBusinessLetterofOffer.

Superannuation Deedmeansasuperannuationacquisitionfinancingdeedorsuperannuationfinancingdeed(seeclause10.3).

Superannuation LawsmeanstheSuperannuation Industry (Supervision) Act 1993 (Cth).

Youmeanseachpersonidentifiedas“you”inthisAgreementand,ifthereismorethanoneperson,meanseachpersonseparatelyandeverytwoormorejointly.Italsoincludesyoursuccessors,andifyouareapartnership,itincludesthepartnershipasreconstitutedfromtimetotime(forexampleafteradmission,retirement,deathorincapacityofapartner).

Formoreinformationcall

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