Terms and Conditions of the Loan. This is in addition to any documents required under this Code and may be a separate document or part of the Loan document. Where we decide not to approve your Loan 81. If we decide not to approve a Loan to you, we will tell you the general reason why, unless it is reasonable for us not to do so. When can we enforce a Loan against a Small Business for non-payment? For special conditions about other Defaults, see paragraphs 86 to 92. How much notice will we give a Small Business before enforcing a Loan for non-payment? 82. If you have not met a Loan payment obligation under your Loan(s) with us, we will give you no less than 30 Days’ notice of the payment failure before we make a demand for full repayment or take Enforcement Proceedings in relation to your Loan(s), unless paragraph 84 applies. 83. We will not require full repayment or take Enforcement Proceedings for non-payment where: a) the overdue amount is paid during the notice period referred to in paragraph 82; and b) if during that notice period a subsequent payment failure has occurred and that further overdue amount is also paid during that notice period. However, we may still rely on another Default that is not a payment Default when permitted under paragraphs 86 to 92. 84. We may give you a shorter notice period, or no notice, for a payment failure if: a) you or a guarantor is insolvent, goes into bankruptcy, voluntary administration, other insolvency process or arrangement, or no longer has legal capacity; or b) it is reasonable for us to do so to manage a material and immediate risk relating to the nature of the relevant Default, your particular circumstances, or the value of the Security. 85. If you have an overdraft or on-demand facility, we may not be required to give you any notice when we require repayment, but if a failure to repay that facility on demand also constitutes a Default under another Loan with us, we will comply with this Part if we enforce that other Loan based on that Default. Specific events of other Defaults Paragraphs 82 to 85 deal with payment Defaults. The following paragraphs 86 to 92 deal with other Defaults in standard form Small Business Loans. Loan Terms and Conditions 86. Our Loan Terms and Conditions will specify how and when we can enforce a Loan against you for Defaults other than payment Defaults. Enforcement of Small Business Loans for non-monetary Defaults 87. For Defaults other than payment Defaults, we will not take action against you unless your Default is one of the following and paragraph 90 permits action in relation to that Default: a) you or a guarantor is insolvent, goes into bankruptcy, voluntary administration, other insolvency process or arrangement, or no longer has legal capacity; b) another creditor brings Enforcement Proceedings against you or a guarantor or against your or their assets; c) early repayment is required under a separate financing arrangement you or a guarantor has with us; d) Default Based Action is taken by us under a separate financing arrangement against you or a guarantor, due to an event of Default which is described in this Part; e) we believe on reasonable grounds that you or a guarantor has not complied with the law or any requirement of a statutory authority, or it becomes unlawful for you or us to continue with the Loan; f) you or a guarantor gives us information or makes a representation or warranty to us which is materially incorrect or misleading (including by omission); g) you use the Loan for a purpose not approved by us; h) your assets or a guarantor’s assets are dealt with, or attempted to be dealt with in breach of the Loan, or any Security or other agreement with us without our consent; i) you or a guarantor do not provide financial information required by your agreement with us; j) you or a guarantor do not maintain a licence or permit necessary to conduct your Business; 20 | ausbanking.org.au
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