Enforcement Proceedings have commenced). We may require you to acknowledge in writing that you accept our reasonable limitations on your use of the valuation before we provide it to you. 98. We will only appoint appropriately qualified and experienced valuers who are members of professional organisations which abide by a similar code of practice. Appointing investigating accountants and insolvency practitioners (including voluntary administrators) 99. We will act fairly when using investigative accountants and insolvency practitioners, and will ethically manage potential conflicts of interest when appointing receivers who have been investigating accountants for a Small Business, for example: a) We will only appoint qualified practitioners who are members of relevant professional organisations with appropriate codes of conduct. b) We will require additional internal oversight of the appointment of investigating accountants as receivers, to ensure that the decision is necessary and to review the circumstances leading to the appointment. c) If the relationship between you and the investigating accountant has deteriorated (for example has become unworkable), we will consider the appointment of an alternative qualified practitioner. B6 Guaranteeing a Loan When this part applies 100. If you are a Guarantor for a Loan that we give to another individual or Small Business, and this Code applies to the Loan, then this part of the Code applies to your guarantee and/or indemnity. 101. Under this part of the Code, we must give you information and follow certain processes designed to help you understand the financial risks of giving a guarantee and to decide whether you choose to accept those risks. However, you must make your own assessment of whether you choose to enter a guarantee. You should consider seeking independent legal and financial advice. Limiting liability under the guarantee 102. Your guarantee will be limited to: a) a specific amount and/or category of amounts such as all amounts owing under a specific Loan, plus other liabilities and amounts as described in the guarantee (for example, interest and recovery costs); or b) the value of a specified property or other assets under a specified mortgage or other Security at the time of recovery. What we will tell and give you Notice to you 103. The Terms and Conditions of the guarantee will contain a prominent notice that: a) you should seek independent legal and financial advice; b) you can refuse to sign the guarantee; c) there are financial risks involved; d) you can limit your liability in accordance with this Code or as allowed by law; e) you can request information about the transaction or Loan; and f) if applicable, that the guarantee may cover future credit facilities and variations of the existing Loan. We will also include a warning notice that appears directly above the place where you sign the guarantee (substantially in the form required by section 55 of the National Credit Code and detailed in Form 8 of the National Consumer Credit Protection Regulations 2010 (Cth) and consistent with this Code). 104. We will tell you: a) about any notice of demand we have made on the borrower for the guaranteed Loan, or any Loan the borrower has (or has had) with us, within the previous two years; and b) if any existing Loan we have given the borrower will be cancelled if the guarantee is not provided. This paragraph does not apply if you are a Commercial Asset Financing Guarantor, Sole Director Guarantor, Trustee Guarantor or Partnership Guarantor. Banking Code of Practice | 23
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