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