the borrower’s liability is limited under the guarantee; or b) making other arrangements we agree to in return for releasing you from your guarantee. Enforcing our rights under the guarantee How we will enforce our rights under the guarantee 124. We will not enforce any mortgage or other Security you have given us in connection with the guarantee, such as a mortgage over your principal place of residence, unless we have first enforced any mortgage or other Security that the borrower has provided for the guaranteed liability. Before we enforce a mortgage over your principal place of residence in connection with the guarantee, we will encourage you to tell us about your circumstances so that we can discuss other reasonable alternatives for you to repay the guaranteed liability. If you are experiencing Financial Difficulty, you can also contact us under paragraph 127. This paragraph does not apply where the guaranteed liability arises under a standard margin loan. 125. We will not enforce any judgement against you under the guarantee unless: a) we have first enforced any mortgage or other Security that the borrower has provided for the guaranteed liability; and b) if one (or more) of the following has occurred: i) we have obtained Court judgement in our favour against the borrower for payment of the guaranteed liability, and the judgement debt remains unpaid for at least 30 Days after our written demand for its payment; ii) we have made reasonable attempts to locate the borrower but without success; or iii) the borrower is insolvent. 126. However, the restrictions under paragraphs 124 and 125 do not: a) apply if, after the Default notice is issued and after we have informed you of the limitations of our enforcement rights under this Part, you have specifically agreed in writing that they do not apply; or b) require us to first enforce any mortgage or other Security that the borrower has provided if we reasonably expect that the net proceeds of that enforcement will not be sufficient to repay a substantial portion of the guaranteed liability, or as a result of the borrower not providing us with information, documents, or access to premises or assets as required, we are unable to reasonably assess whether the net proceeds of that enforcement will not be sufficient to repay a substantial portion of the guaranteed liability. Guarantors experiencing Financial Difficulty 127. If you are a Guarantor and we have made a demand for you to pay under a guarantee and you are experiencing Financial Difficulty, then contact us as soon as possible and we will discuss your options. B7 Farmers Charging Default Interest during drought and natural disasters 128. Subject to paragraph 129, where you are a Farmer and we have provided you with a Loan for the purposes of a Farming Operation, we will not charge Default Interest (or any fee in lieu of Default Interest) on that Loan during any period that the land you use for that operation is in drought or subject to natural disaster. For the purposes of this paragraph, land is “in drought or subject to natural disaster” where an Australian State or Territory Government makes a declaration to that effect, or, if no such declaration is made, where we are satisfied on other grounds that the land is in drought or subject to natural disaster. 129. For paragraph 128 to apply, you may need to tell us about the circumstances, and we will refund any Default Interest or fees charged in lieu of Default Interest which were charged during your Default and the drought or natural disaster. Farm debt mediation 130. Before we enter into a farm debt mediation with you, we will inform you that you may have a right to make a Complaint to AFCA. 26 | ausbanking.org.au
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