k) you or a guarantor do not maintain insurance required by your agreement with us; l) legal or beneficial ownership, or management control of a borrower or guarantor or their Business changes without our consent; or m) status, capacity or composition of you or a guarantor changes without our consent. Nothing in this paragraph prevents us from taking action under paragraphs 82 to 85 or in relation to Defaults arising under covenants permitted by paragraph 91. What we will do before we take Default Based Action Remedying your Default 88. Where your Default is identified in paragraph 87(a) to (m), we will give you: a) a notice specifying the grounds on which we consider there is a Default; and b) no less than 30 Days’ notice of the Default (unless paragraph 89 applies) to remedy your Default where it is able to be remedied and notify you of this time period. 89. We may give you a shorter notice period, or no notice, 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. Material impact 90. We will only act on a specific event of Default identified in paragraph 87(a) to (m), if the event by its nature is material, or we reasonably consider the event has had, or is likely to have, a material impact on: a) you or your guarantor’s ability to meet your or their financial obligations to us (or our ability to assess this); b) our Security risk (or our ability to assess this); or c) our legal or reputation risk where paragraph 87(e), (f) or (g) applies. Specialised Small Business Loans 91. For the following types of Small Business standard form Loans, we may include financial indicator covenants or special covenants tailored to the particular nature of these Loans as a trigger for Default Based Action: a) Loans for property development; or b) Loans for specialised lending transactions, which because of their nature, require additional covenants as a way of banks managing their risks, including margin lending, Loans to selfmanaged superannuation funds, bailment, invoice discounting, construction finance, foreign currency Loans and tailored cash flow lending. General material adverse change clauses 92. We will not include an event of Default based on unspecified material adverse changes in any standard form Small Business Loan contract. When we decide not to extend a Loan How much notice will we give you before the end of a Loan 93. If you are not in Default, and under the Loan contract the principal owing is not to be fully repaid at the end of its scheduled term by regular periodic repayments, we will give you notice of our decision not to extend your Loan, at least 3 months before you need to repay your Loan in full. 94. If we decide to extend or refinance your Loan, we are not required to do so on the same terms. When we appoint external property valuers, investigative accountants and insolvency practitioners When using external property valuers, we will be fair and transparent 95. Our processes in relation to external expert valuations will be fair and transparent. 96. Our communication will be clear, and we will explain the purpose of the valuation to you. When we will provide you with a copy of a valuation 97. Where we have received a valuation of a commercial or agricultural real property which you have paid for, we will provide you with a copy of that valuation and the related valuer instruction (except where 22 | ausbanking.org.au
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