a company or as a partner in a partnership or jointventure arrangement), paragraphs 70 to 72 apply to you. 70. If, on the information that you have provided to us in the course of applying for this Loan, you will not receive a substantial benefit from the Loan, we will not approve you as a co-borrower unless we: a) have taken reasonable steps to ensure that you understand the risks associated with entering into the Loan, and understand the difference between being a co-borrower and a Guarantor; b) have taken into account the reasons why you want to be a co-borrower; and c) are satisfied that you are not experiencing financial abuse. 71. A substantial benefit includes where: a) you acquire a reasonably proportionate legal or equitable interest in assets purchased with the Loan funds; or b) a reasonable portion of the Loan funds are used to repay your debts, or other obligations owed by you. 72. You may end your liability under the Loan by giving us a written request to do so in the following circumstances: a) where credit has not been provided or relied upon by any co-borrower; or b) for any future advances under the Loan, where we can terminate any obligation we have to extend further credit to any other co-borrower under the same Loan. Lenders mortgage insurance 73. We may require you to pay for lenders mortgage insurance in connection with a Loan you have. If we do this, we will give you a fact sheet about lenders mortgage insurance. The fact sheet will contain information outlining the key policy features. 74. We will not charge you more for lenders mortgage insurance than the actual cost we incur for that policy. We will not receive a commission on your lenders mortgage insurance policy. 75. Depending on the terms of the lenders mortgage insurance policy, if your Loan is repaid or refinanced before the end of the policy, then you may be entitled to a refund of part of the fee or charge you have paid. We will explain this to you in the fact sheet. B5 Lending to Small Business This Part B5 sets out our specific commitments to Small Businesses in relation to providing Loans. Any reference to “you” or “your” in this Part B5 means “Small Business and any reference to “guarantor” means any guarantor of a Small Business, and is not limited to a “Guarantor” (as defined in Part E). Helping a Small Business when it applies for a Loan 76. We will tell you how to apply for a Loan, including the following: a) the information we require; and b) after we have received the information we have requested, how long before we are likely to make a decision. Assessing a Small Business Loan application Appropriate lending 77. If we are considering providing you with a new Loan, or an increase in a Loan limit, we will exercise the care and skill of a diligent and prudent banker. 78. When assessing whether you can repay the Loan, we will do so by considering the appropriate circumstances reasonably known to us about one or both of your: a) financial position; or b) account conduct. Where relevant, we may also take into account your projected future cash flows. We will not ask a third party (such as your accountant) to certify that you can repay the Loan. Where reasonable to do so, we may rely on the financial resources of third parties available to you, provided that the third party has a connection to you (that is, to the Small Business). For example, where the third party is a Related Entity of yours (including but not limited to your directors, shareholders, trustees, beneficiaries or related body corporates), or is a partner, joint venturer, or guarantor of yours. 79. We also owe an obligation to any Guarantor of the Loan to comply with paragraph 78 in assessing the borrower’s ability to repay the Loan. Documents we will give you 80. Before you accept a Loan offer, we will give you a plain English document clearly setting out the key general Banking Code of Practice | 19
RkJQdWJsaXNoZXIy MTI3ODI1