Other relevant information…

ANTI-MONEY LAUNDERING AND COUNTER-FINANCING OF TERRORISM ACT 2009

The Anti-Money Laundering and Counter Financing of Terrorism Act is designed to help detect and deter money laundering and terrorism financing. Under this law all financial institutions in New Zealand are required to do more to verify a customer’s identity and, in some cases, account activity. Businesses, trusts, or other organisations will need to provide information on the organisation and anyone who acts on its behalf.

The AML law requires all financial service providers to:

  • Identify their customers before providing financial services

  • Identify the source of client funds that form part of the lending transaction

  • Identify the client’s source of wealth

  • Monitor customer transactions on an ongoing basis

  • Report certain transactions and suspicious activities and/or behaviours

FINANCIAL SERVICE PROVIDER

Cressida Capital Limited is registered as a provider of credit under a credit contract service and subscribes to the Financial Dispute Resolution Scheme. Further information on this scheme can be found at www.fdr.org.nz or at their physical address at Level 9, 109 Featherston Street, Wellington 6011.

CREDIT CONTRACTS AND CONSUMER FINANCE ACT

Under the Credit Contracts and Consumer Finance Act (CCCFA) a “consumer loan” is one where the consumer uses or intends to use the credit, wholly or predominantly for personal, domestic or household purposes. For real estate transactions a second relevant test is whether or not the security property is held in the name of an individual and is their primary place of residence. Cressida does not accept loan applications for consumer loans.

SETTLEMENT AND ADVANCE OF FUNDS

Prior to settlement Cressida requires all Conditions Precedent to be satisfied, all legal documentation to be correctly executed, and a completed drawdown notice with a solicitor’s trust account deposit slip. Urgent settlements are handled on a priority basis.

ADVISER COMMISSIONS

Adviser commissions are paid the working day following the settlement date of the loan.

INDEPENDENT LEGAL ADVICE

All Borrower(s) and Guarantor(s) must have separate legal representation and all costs associated with, and incidental to, the preparation of the loan documentation are to the account of the Borrower. Cressida legal costs for residential loans start from $1,200 + GST while legal costs for commercial loans start from $1,800 + GST. A quote for Cressida’s legal costs is supplied with all loan offers.

SETUP COSTS

There are typically setup costs associated with completing the loan settlement which includes investigation, assessment, and inspection of the security property, and other parties to the loan. These generally range between $250 and $600. A quote for set up costs is supplied with all loan offers.

REGISTERED VALUATION

All registered valuations must be:

  • from a registered valuer acceptable to Cressida

  • no older than three months

  • readdressed to Cressida Capital One Limited

  • confirm the current ‘as is’ market value for the subject property

  • include photos, appropriate comparable sales evidence, and clearly state all assumptions

INTEREST RATES

Interest charges are calculated by multiplying the loan balance at the beginning of the day by a daily interest rate. The daily interest rate is calculated by dividing the annual interest rate by 365. Interest is charged to the account monthly and may be paid monthly in arrears, part-paid and part-capitalised to the loan account, or 100% capitalised to the loan account.

FINANCE FEES

An initial finance fee is nominated in the letter of offer and is payable on acceptance of the offer. Typically this is in two stages, part payment on acceptance of the letter of offer, with the balance paid either on settlement of the loan facility by deduction from the loan. The initial finance fee normally ranges between one and two percent of the loan amount.

Should a loan facility run past the repayment date and not be repaid, and with no arrangements to extend the loan being agreed, then an overdue facility fee of between one percent and two percent of the loan balance at that date may be charged to the loan account.

GST

A written confirmation is required of whether or not the Borrower is registered for GST and confirming whether or not GST has been claimed on the property. If there is any uncertainty the GST exclusive value is used to calculate the loan to valuation ratio.

INSURANCE

All improved property is required to have insurance cover with a credit rated insurer with Cressida’s interest noted on the insurance certificate. All construction projects need to have appropriate Contract Works insurance cover in place. Commercial properties may require loss of rents insurance. Residential properties subject to “Sum Insured” insurance policies will be reviewed to ensure that the insurance cover is sufficient.

FACILITY PREPAYMENTS

Prepayments of part or all of the loan can be made at any time provided you have given us at least five working days written notice of the intention to do so. As a prudent lender Cressida needs to manage both cashflows and liquidity and as a result any flexibility around repaying part or all of the loan facility during the term of the loan needs to be agreed when the loan is established. In the absence of any prior agreement an early repayment charge generally applies.

MISSED INTEREST PAYMENTS

In the event a scheduled interest payment is not made then, in the absence of any other arrangements, a $200 missed payment charge will apply.

MONTHLY ACCOUNT FEE

A monthly account fee of $25 per calendar month applies to all loan facilities.