Borrowing explained: loans, mortgages and guarantees

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Borrowing explained: loans, mortgages and guarantees

Borrowing money

When you get a loan, the bank will usually require a mortgage and guarantee.

The loan relates to the amount of money you are borrowing from the bank and contains the bank’s lending terms that you have agreed to, such as the interest rate, repayment plan and the security required by the bank.

A mortgage is a charge that will be registered against the land belonging to the borrower or a related party.  This is the bank’s way of ...

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Business, Finance, Land

I have agreed to guarantee a loan, so why has the Bank sent me to a lawyer?

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In short, the Bank has sent you to a lawyer to cover its own butt.

In certain circumstances the Bank is put on notice and taken to have presumed that the guarantor has been unduly influenced by the borrower to give a guarantee. As a result, the Bank will be unable to enforce the guarantee. That is, unless before taking the guarantee it had taken steps to ensure the guarantee had not been given as a result of undue influence. Those ...

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Finance

How to enforce your loan and who is responsible for unpaid rates on the mortgaged land?

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If you have loaned someone money and registered mortgage over their property as security you are a “mortgagee”.  If the borrower has stopped making interest and principal repayments there is a process you need to follow to enforce your rights under the mortgage.

What can you do?

If the borrower is in default because they have breached the terms of the mortgage, either because they have failed to make the required payments or they have failed to do something else under the ...

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Finance, Land

Retailers providing credit must register as financial service providers by 30 November 2010

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New laws applying to the finance industry from 1 December this year will have a substantial impact on financial advisers and financial service providers. This legal blog deals with the new obligations on financial services providers.

Retailers providing goods on credit terms are financial service providers and therefore need to register as financial service providers under the new laws applying to the finance industry by 30 November 2010.

Generally, any ...

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Business, Finance

Angel Investors give businesses a helping hand

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I attended the Whangarei Business Owners Forum last week. The Business Owners Forum was held at the office of Elevate CA in Whangarei and the topic was A Rough Guide to Valuing Your Business. The panel of experts included Whangarei chartered accountant Fraser Hurrell from Elevate CA, Whangarei lawyer Stuart Spicer from Webb Ross, and Whangarei commercial business banker Geoff Grigg from the Bank of New Zealand.

All three experts discussed the aspects of a business that come under the spotlight ...

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Business, Finance

Government assists elderly in need of care

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In the current economic climate any extra financial assistance can help make ends meet. If you or someone you know is part of the baby boomer bubble that we so often hear about and is about to enter a rest home, that person may be able to get financial help from the government. In this blog I discuss the government funding available for elderly in need of care.

Residential Care Subsidy: what is it and who can get it?

The residential care ...

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Elder Care, Finance