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Calling upon a bank guarantee – not as simple as you think

The decision in Universal Publishers Pty Ltd v Australia Executor Trustees Limited [2013] NSWSC2021 suggests that the ability of a landlord to call upon a bank guarantee for the purpose of reinstating and remediating the premises depends upon the terms of the lease.

If the lease provides that the landlord can call upon the bank guarantee for an actual breach of the lease or an actual default by the tenant, however the landlord cannot call upon the bank guarantee where there is only claimed or alleged breach or default by the tenant. [...]  READ MORE →

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Guidelines for banks when lending to SMSFs

The SMSF Professional Association of Australia (SPAA) has released guidelines of disclosures that should be made to trustees of a SMSF by lenders.
Your bank should explain to you the advantages and disadvantages of Limited Recourse Borrowing Arrangements. They also need to explain to you what happens in the event of a default on the loan.

If you have any questions or concerns about your SMSF borrowing arrangement, contact our Business Lawyer Parramatta who can provide comprehensive advice and assistance. [...]  READ MORE →