conference, this will be done by having you confirm that the borrower is not present, and ensuring that the borrower is not visible on screen. This paragraph does not apply if you are a Commercial Asset Financing Guarantor, Sole Director Guarantor, Trustee Guarantor or Partnership Guarantor. During the guarantee 115. We will send to you the following information, about a borrower’s deteriorating financial position as it relates to the Loan you guarantee, within 14 Days of the relevant event: a) a copy of any formal demand or Default notice we send to the borrower after we send it; b) a written notice if the borrower has advised us that they are experiencing Financial Difficulty which has resulted in a change to their Loan; and c) a written notice if the borrower is in continuing Default for more than two months after the issuance of the Default notice referred to above. This paragraph does not apply if you are a Commercial Asset Financing Guarantor, Sole Director Guarantor, Trustee Guarantor or Partnership Guarantor. 116. You may write to us to limit, or further limit the liabilities you have guaranteed under your guarantee. However, we do not have to accept your request if: a) the amount, or nature, of the limit you request does not cover the borrower’s existing liability (plus any interest owed, or any fees, or charges that we may incur in respect of that liability) under the relevant Loan contract at the time; b) we are obliged to make further advances to the borrower; or c) we would be unable to preserve the current value of an asset which is Security for the Loan without making further advances. 117. If you ask us to, within 30 Days we will give you additional copies of any information we have given you about your guarantee. However, we do not need to give you those copies if we have given you the information you requested within 3 months before your request. This paragraph does not apply if you are a Commercial Asset Financing Guarantor, Sole Director Guarantor, Trustee Guarantor or Partnership Guarantor. 118. Nothing in this Code requires us to provide you with any information other than the specific factual information referred to in paragraphs 104, 105, 106 and 115. Extending your guarantee 119. If a borrower obtains a new Loan or has changes made to an existing Loan, then these may be covered by your guarantee to the extent they fall within the limit contained in your guarantee. 120. If we agree to increase the limit in your guarantee, we will: a) give you what is required under paragraph 105; and b) obtain your written acceptance of the extension of the guarantee. 121. In these circumstances, we will provide you with any unsatisfied notice of demand made by us on the borrower in respect of the Loan. Withdrawing or ending your guarantee Withdrawing your guarantee 122. You may, by written notice to us, withdraw from the guarantee: a) at any time before we provide credit under the relevant Loan; or b) after credit is first provided, if the signed version of the relevant Loan differs in a material respect from the proposed Loan, we gave you before you signed the guarantee. This does not apply for any change to the Loan described in paragraph 119. However, if your guarantee applies to more than one Loan, you may only withdraw in relation to a Loan referred to in (a) or (b). Ending your guarantee 123. You may end your liability under a guarantee you have given to us by: a) paying us the lower of: i) the borrower’s outstanding liability, including any future or contingent liability; or ii) the amount to which your guarantee of Banking Code of Practice | 25
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