Community Loans

Trustees have from December 2009 approved the terms and conditions for Community Loans:

1. Loans will be approved to community based not-for-profit organisations for capital expenditure.
2. Loans will be for new projects and not be used to retire current debt.
3. Loans will wherever possible be secured by a registered instrument.
4. Loan applications should be submitted on the current donation application form, supported by current financial statements, budgets, financial cash flow statements, sale and purchase contract or current quotations, valuations, insurance policies, confirmation of other funding.
5. Applicants will be required to make a formal presentation to a representative committee of Trustees, at which time the applicant will clearly outline the benefit to the applicant and the community as a whole that will accrue from the project proceeding.
6. Loans will be for a maximum term of ten (10) years, repayments of principal (10% each year) and interest will be made by monthly installments.
7. Interest will be charged at 3% pa.
8. The maximum approval for any one new loan is $500,000.
9. The fees in respect of loan documentation and securities registration will be at the applicant's cost.
10. Applications can be submitted at any time during the year, Trustees will consider recommendations during their monthly Board meetings.
11. The ability to service a loan will determine the amount advanced, there are no debt/equity ratios to be applied.
12. The community loan portfolio is limited to the equivalent of 1.5% of the Investment Portfolio.