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					                            ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                    PRIORITY COMMERCIAL APPLICATION OVERVIEW


                                                      Stage1
                                               Discussing a Scenario
                                              Contacts
                                              Target Market
                                              Credit Criteria
                                              Product Features
                                              Frequently Asked Questions (FAQ’s)



            Stage3                                                                                 Stage2
          Submission                                                                      Packaging the Application
   Service Levels
                                                                                                     PCM Summary Checklist
   Pre Assessment Review
                                                                                                     Supporting Documents
   Application Prioritisation
                                                                                                     Legal Requirements
   Application Process Flowchart
                                                                                                     Fees




           Stage4
                                                                                                              Stage5
Initial Credit Assessment
                                                                                                          Credit Decision
   Process
   Contact                                                                                           Indicative Approval
   Credit Authority                                                                                  Declined (Appeal Process)
                                                                                                      Pending Further Information
                                                                                                      Typical Conditions




           Stage7
                                                                                                                    Stage6
       Formal Decision
                                                                                                                   Valuation
   Process
                                                                                                        Valuation Process
   Typical Conditions
                                                                                                        Panel Valuers
                                                                                                        Valuation Fee Structure
                                                                                                        Valuers Check List
                                                                                                        FAQ’s




            Stage8
                                                                                                                 Stage9
    Solicitors Instructions
                                                                                                                Settlement
   Process
   Solicitors Contacts                                                                                 Process
   Hickson Procedures
   Gadens Procedures




          Stage 11
                                                                                                               Stage 10
      Non Credit Issues
                                                                                                            Post Settlement
   Bank Statements
   Direct Debits                                                                                       Loan Variations
   3rd Party Loan Access                                                                               Product Switches
   Customer Support                                          Page 1                                    Increases
   Internet Access                                                                                     Rollovers
                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                        STAGE 1
                                 DISCUSSING A SCENARIO

   PCM Business Development Manager Contacts
Name                      State           Mobile              Email Address
Clem Marcocci             National        0401 145 180        clem.marcocci@ingdirect.com.au
Andrew Lim                NSW             0424 135 875        andrew.lim@ingdirect.com.au
Amanda Branch             NSW             0434 510 545        amanda.branch@ingdirect.com.au
John Maldonado            NSW             0413 007 608        john.maldonado@ingdirect.com.au
Greg Russell              NSW             0404 816 537        greg.russell@ingdirect.com.au
Peta Flynn                ACT             0406 993 126        peta.flynn@ingdirect.com.au
Dave Smith                QLD             0402 891 938        dave.smith@ingdirect.com.au
Colin Mason               QLD             0421 050 270        colin.mason@ingdirect.com.au
Michael Ruhle             Sunshine        0411 172 976        michael.ruhle@ingdirect.com.au
                          Coast
Damian Halton             Gold            0406 993 127        damien.halton@ingdirect.com.au
                          Coast
Robyn White               VIC             0406 994 975        robyn.white@ingdirect.com.au
Shellie Hall              VIC             0406 664 105        shellie.hall@ingdirect.com.au
Noelle James              VIC             0424 150 842        noelle.james@ingdirect.com.au
John Leveque              VIC             0420 973 916        john.leveque@ingdirect.com.au
Ashley Amaro              SA              0413 055 007        ashley.amaro@ingdirect.com.au
Richie Allen              SA              0413 013 106        richie.allen@ingdirect.com.au
Tony Prollifrone          SA              0406 530 458        tony.prollifrone@ingdirect.com.au
Stephen Plummer           WA              0420 981 776        stephen.plummer@ingdirect.com.au
Stephen Geel              WA              0421 143 682        stephen.geel@ingdirect.com.au




                                                  Page 2
                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

   Target Market
-   Commercial Mortgages $250,000 to $2,000,000
-   Property investors and experienced owner occupiers
-   Secured by non-specialised: -
       Commercial
       Industrial
       Retail
-   Located in Major metro locations (regional locations considered on case by case
    basis),
-   Market is defined by the security property offered, not the purpose of the transaction
    (ie: residential security offered for a commercial purpose would be funded using
    normal residential loan products),
-   Not for property development


   Credit Criteria
-   Maximum Lending Value Ratio: -
       75% for Principal and Interest Loans
       70% for Interest Only Loans


   Competitive Advantages
-   Generally a set and forget type facility (ING DIRECT reserves the right to review
    loans at its discretion)
-   No ongoing fees or charges
-   Low commitment fee (0.25%)
-   Repayment flexibility
-   Competitive and flexible pricing

   Full Serviceability assessment
-   Serviceability ratio of 1.40x with positive surplus to be evident, note: -
       Commercial assessment rate is the higher of +2.0% on the Commercial variable
        rate or the „floor‟ assessment rate of 8%,
       Commercial loans assessed on Interest Only basis
       Commercial rental income to be supported by current lease agreement
       Use the current version of the Serviceability calculator Version located on the
        Introducer Website.



                                                   Page 3
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW

   Stand-alone assessment
-   Serviceability ratio of 1.30x with a positive surplus to be evident, note: -
       Serviceability is assessed solely based on this loan request being serviced by net
        rental income from a lease over the commercial security property,
       Commercial assessment rate is the higher of +2.0% on Commercial variable rate
        or the „floor‟ assessment rate of 8%
       Commercial loan is assessed on an Interest Only basis,
       Arms length registered lease to be available with a minimum remaining term of
        3yrs (NB: shorter lease terms will be considered for long standing tenants,
        however not month to month lease agreements or leased to related entities),


   Product Features


 Maximum term is 15 years principal & interest (Interest Only up to 5 years),


 Variable Interest Rate or Fixed terms of 1, 2, 3, 4 or 5yrs
    (1yr Interest in advance option is also available)


 0.25% commitment fee (refundable up until issuance of formal Letter of Offer)


 Carded Indicative Variable Rate
    (Example:- ING DIRECT Commercial Cash Rate + margin)


 Carded Indicative Fixed Rate - Relevant swap rate % + margin.
    (Rates are indicative up until day of settlement, ie: can not be locked in)


 Interest rates are flexible for quality business
    (Please discuss with your Relationship Manager)


 Unrestricted additional repayments are available on variable rate loans with redraw
    option (minimum redraw of $10,000 at a cost of $150).


 Up to $20,000 in additional repayments are available on fixed rate loans per calendar
    year, without penalty




                                                 Page 4
                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

 Early repayment fee - 1 month's additional interest on the original loan amount if
    discharged within the first 5 years


 Legal costs
    Loans <=$600,000 - approx $600 + disbursements
    Loans > $600,000 - approx 0.1% of loan amount + disbursements
    We use Hicksons Lawyers in NSW and Gadens National Mortgage Service
    interstate

   Frequently Asked Questions (FAQ’s)


    1. Client is wishing to purchase commercial property and then complete major
       extension can ING DIRECT assist? Currently ING DIRECT Priority Commercial
       Mortgages does not provide funding for development / construction works.


    2. Is vacant commercial land acceptable as security? Unfortunately No –
       however on a case by case basis we may considered limited exposure against
       vacant land taken as secondary commercial security.


    3. Client wants to purchase a commercial office and use a mixture of
       commercial & residential security – who assesses this request? Mixed
       commercial / residential loans are assessed within our Commercial team. Fax
       both requests to 1800 352 922 (do not split one to the residential team and one to
       the commercial team).


    4. Business customers currently have a business loan with another lender,
       which it is secured by a residential property - where do I lodge this and what
       is the rate? Customers can refinance a business loan
       secured by a residential house through our normal Residential channel at
       residential rates (conditions and terms apply).


    5. Purchase is in the name of a Family Trust is this ok? Yes – please provide a
       copy of the trust with the application.




                                                   Page 5
           ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                PRIORITY COMMERCIAL APPLICATION OVERVIEW

6. There are several companies involved, is this a problem? No – however
   please ensure two (2) years tax returns are provided for all entities as well as how
   the companies interact with each other.


7. Is ING DIRECT Priority Commercial Mortgages able to negotiate on rate?
   Yes for quality business we are able to consider reducing the margin.


8. Can a client make reductions on their Fixed Rate Commercial Loan? Yes up
   to $20K per calendar year with out penalty (redraw not available).


9. Are there any hidden ongoing fees?
   No – ING DIRECT has no ongoing fees or charges.


10. My client wishes to borrow in their Superannuation Fund is this possible?
   Due to legal reasons we cannot lend to a Superannuation fund or against a
   property owned by a superannuation fund.


11. Will my client need to provide financials for the loan facility to be reviewed?
   No, if the client wanted a variation / increase their facility these would be
   requested. Generally a set and forget facility, however, ING DIRECT reserves the
   right to review loans at its discretion.


12. The rent covers the interest expense, would ING DIRECT consider?
   Under PCM Credit Policy we will look at a Stand Alone Facility for investment
   property where the net rental income covers the interest expense by 1.30x (at the
   higher of our assessment or „floor‟ rate). Tax returns are still required to be
   provided.


13. Is there stamp duty re-finance concession for commercial mortgage?
   From 1 August 2005, mortgage refinance is capped at $1 million. The concession
   applies to this amount of the lower of (a) the earlier loan; or (b) $1m. Duty
   currently (0.4%) will be payable on the amount of any excess.




                                             Page 6
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW

                                                TAG
                                 STAGE 2
                         PACKAGING THE APPLICATION
                                                 E1
   PCM Summary Checklist
This Document is to be fully completed and sent in with the loan application form.


   Supporting Information Checklist
All Applicants
          Fully completed Loan Application Form
          Applicants/Guarantors Identification form (include copies of photographic
           identification)
          Company & Trust Appendix
          0.25% Commitment Fee + Valuation Fee
          Have you advised your client the 0.25% Commitment Fee becomes non-
           refundable upon issuance of the formal Letter of Offer?
          Serviceability calculation print out (mandatory)
          Letter/statement from Real Estate Agent confirming proposed/existing rental
           income or lease agreement.
          Description of property eg: warehouse, office, factory
          Statutory Declaration stating that funds being gifted are not repayable (if
           applicable)
          Rates Notice for all properties owned
          Copy of recent statement for all loans held


PAYG Applications / Guarantors
          Last 2 year full Personal Taxation Returns (mandatory)
          Latest ATO Assessment Notice (if available)


Self Employed Application
          Last 2 years full Business/Company Taxation Returns and Financials (Notes
           inclusive) PLUS
          Last 2 years full Personal Taxation Returns
          Latest ATO Assessment Notice
          BAS Statements (if applicable)

                                                 Page 7
                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW

            Memorandum & Articles of Association (by settlement)
Trusts
            Trust Deed PLUS
            Last 2 years full Trustee Taxation Returns (mandatory)


Refinance Applications
            Last 6 months statements of loans being refinanced
            Last 6 months statements of trading account, (if interest from Loan account is
             offset to trading account)
            Land Tax Certificate (also applicable for increases to existing commercial
             loans – by settlement)
            Zoning Certification (by settlement)


   Typical Servicing Considerations


Interest:
If the interest relates to a loan we are either refinancing or are including in our
assessment of serviceability then we can add the P&L interest cost back for servicing
purposes. ie: If a company has two commercial loans with the ANZ and are refinancing
one of them to us, our serviceability calculator would calculate loan payments on the new
ING DIRECT term loan (e.g. Interest only at 9.60%) as well as the remaining ANZ Term
Loan (e.g. Interest only at 9.60%). In this instance we would addback 100% of Interest
costs as we are recalculating the assessed interest expense.
It is important to be careful not to addback interest costs on Hire Purchase or leases etc
as we don't recalculate these expenses in our serviceability assessment and as such
should leave the original expense in the P&L statement.


Depreciation:
ING DIRECT does not allow depreciation to be added back that relates to motor vehicles
(given these need to be regularly updated and theoretically the depreciation expense
should be used to fund the replacement). In addition to this, ING DIRECT does not
addback depreciation that is on core equipment for a business, ie: if the company is a
granite and marble manufacturer then Depreciation on plant & equipment would not be
added back as the P&E is core to the businesses operation. Otherwise, depreciation on
P&E would be an acceptable addback.


                                                  Page 8
                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW



It is recommended that you consider (1) the amount of depreciation being expensed and
(2) at the depreciation schedule, if the amount is around the $10k mark and not motor
vehicles then it is probably OK. If, however it is a sizeable figure ($20k, $30k $90k etc)
then in most cases we would not be able to addback 100% of depreciation, depending on
what the depreciation schedule shows us we may addback a reduced percentage
(typically <20%).


Rent:
If the clients pay rent to a 3rd party and that will cease on purchase of the new property
then rent is considered a non-recurring expense and can be added back - put it under
'Other' in the company income part of the serviceability calculator.


Super:
If the customers contribute more than 9% of their salary to their personal superannuation,
this surplus payment is discretionary and can be stopped at any time, as such it can be
added back to assist with serviceability.
NB: don't addback 100% of superannuation payments only that in excess of 9% of the
salary expense.


One-offs:
Expenses that are genuinely 'one-off' expenses can arguably be added back, ie: total refit
of the office etc. This would exclude loss from sale of an asset given the client may need
to sell off other surplus assets and incur losses in the future (conversely we would
exclude any profits from the sale of assets, given they are non-recurring income).
Nb: addbacks of this nature would be up to the discretion of the assessor and would be
based on the business the customer is in and supporting comments about the 'one-off'
expense. If this is a major item talk to us first.




   Legal Requirements




                                                  Page 9
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW

Pre-settlement Legal Requirements:

     1)   If the loan is a refinance transaction you should have your clients execute the
          relevant discharge authority and forward the original to this office (GPO Box
          4094 Sydney NSW 2001 Attention: Priority Commercial Mortgages) prior to
          execution of the formal Letter of Offer.

     2)   Please note that typical settlement conditions include the provision of Zoning
          and Land Tax Certificates.


For more specific details on our typical pre-settlement requirements please refer to
attached documents:


     FEES
The following fees will apply to all Priority Commercial Mortgage applications submitted.
     Commitment fee –
A commitment fee of 0.25% of the total loan amount is to be payed to ING DIRECT prior
to the Formal Approval Letter being issued.
NB: Commitment fee is fully refundable up until issuance of Letter of Offer.


     Commercial Property Valuation Fees –
    EMV or Purchase Price                                                  Estimated Valuation Fee
                                                                          (subject to confirmation)
    $0 - $500,000                                                                       $600
    $501,000 - $750,000                                                                 $800
    $751,000 - $1,000,000                                                               $950
    $1.01 - $1.5m                                                                      $1,250
    $1.51m - $2.0m                                                                     $1,750
    $2.1m - $2.5m                                                                      $2,000
    $2.51m - $3m                                                                       $2,500
    $3.1m - $4m                                                                        $3,000
GST is not applicable on the fee


Where residential security is to be provided as additional security, valuation costs in this
regard remain the same as with a standard ING DIRECT Home or Investment Loan
application. This can be summarised as:


                                                   Page 10
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW



The first residential property valuation (up to an estimated market value of $1m) is free;
The valuation cost of a residential property with an estimated market value between $2m
and $3m is $350 + GST (of which ING DIRECT pays $200);
Second and Subsequent Sydney metro residential valuations will cost $200 each
(inclusive of GST)


   Legal Fees –
This is a guide to the costs that may be charged directly to the borrower by the solicitors
representing ING DIRECT. Please note that this does not include all costs that may be
payable by the borrower in the relation to obtaining finance for the purchase of property.


   Loan Variation Fee –
A fee of $290.00 applies to make changes to the Letter of Offer between the disclosure
(date of original issue) and settlement.




                                             STAGE 3
                                           SUBMISSION


   Service Levels



                                                Page 11
                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

The following time frames are indicative, we aim to provide quicker turn-around at
each stage, however from time to time these service levels may be stretched due
to volumes.
    Service Levels
     Courtesy Call / SMS                            30min; made to broker to confirm receipt
                                                    of application
        Pre-assessment review                       24hrs: Review application and have any
                                                    request for additional information faxed to
                                                    the broker
        Indicative approval                         2 to 3 business days, once all
                                                    information is to hand
        Valuation                                   5 business days from date of
                                                    inspection, assuming no delays in
                                                    access
        Formal Approval                             9 business days, from date application is
                                                    received
        Solicitors – Document                       48 hrs, once relevant information is to
        Preparation                                 hand (ie: copy of transfer etc)


   Contact
    -     If you wish to follow up the status of your Commercial Loan application, the
          following options are available: -
         Tracking of the deal via ING DIRECTS‟ Introducer website
          (introducer.ingdirect.com.au)
         Phoning our Introducer Solutions team – Ph: 1300 656 226
         Contacting our Team Administrators: -
          Mats Lindfors:           (02) 9028 4523              mats.lindfors@ingdirect.com.au




          Each administrator is allocated their own deal where they will introduce
          themselves upon receipt of application and will be your dedicated contact
          right throughout the pre-settlement process.

                                                  Page 12
              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW

Communication Milestones
    At each stage of the application process, our team administrator or credit
    assessor will be contact with you to inform you on the progress of the
    application.

        Action Item                           Contact                        Responsibility
        Application Received                  Phone/Text                     Team Administrator
        Initial Credit Review                 Fax or E-mail                  Credit Assessor
        Initial Credit Decision               E-mail or Fax/Text             Team Administrator
        Fee Follow-up                         E-mail or Phone                Team Administrator
        /Indicative/Other
        PFI Follow-up                         E-mail or Phone                Team Administrator
        Valuation                             E-mail/Fax to valuer           Team Administrator
                                              Text to Broker
        Letter of Offer                       E-mail/Text                    Team Administrator
        Settlement                            Phone                          Team Administrator




                                    STAGE 4
                          INITIAL CREDIT ASSESSMENT

   Process
-   On initial receipt of the Commercial application, a Credit Assessor will briefly
    review all information provided and reply by fax if any information / supporting
    documents were not received


                                               Page 13
                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW

      If full sufficient information is not available to assess the loan a request for
      „Additional Information‟ will be faxed to the broker within 24hrs. Typically,
      information requested include: -


         Fully Completed Priority Commercial Mortgage Application Summary &
          Checklist, including full description of the security being offered,
         Fully completed Loan application form,
         Two years full tax returns for all personal and company entities,
         Copy of lease agreement for all investment properties,
         Completed Serviceability Assessment worksheet,
         Copies of rates notices for all properties owned and recent bank statement
          for all loans held,
         Copy of six (6) months bank statements for all loans being refinanced,
         Copy of Contract for sale.


      Our service standard commences once sufficient information to assess a loan
      is received.


                  -     Where sufficient information is available to commence
                        assessment of the loan, a request for additional information is
                        sent and the loan is assessed as per our normal process.



     Contact
If you wish to discuss further the “Additional Information” required for your
Commercial Loan application, please contact one of our credit assessors:

    Peter Webster           Credit Assessor            02 9028 4326       peter.webster@ingdirect.com.au
    Denis Starr             Credit Assessor            02 9028 4186       denis.starr@ingdirect.com.au
                            (Existing Business)
    Ross Bradbury           Credit Assessor            02 9028 4943       ross.bradbury@ingdirect.com.au



     Credit Authority
-     We are able to approval deals up to $1,000,000 within our own team.

                                                       Page 14
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

    For deals above this amount we obtain quick turn-around from our „Credit Risk
    Managers‟ located in our offices.




                                             STAGE 5
                                          CREDIT DECISION

   Indicative Approval


-   On receipt of the application a Credit Assessor will review the proposal in full
    within 2 to 3 business days and advice the outcome by fax.


Being: -
       Approval: -
        An „Indicative Approval Advise‟ is faxed off which will provide a summary of
        the loan approved and any specific conditions of approval, in addition an
        SMS is sent to the broker advising the approval,


       Declined: -
        A letter is faxed off to the broker outlining reason for our decision. If the
        decision is serviceability related a copy of our workings is included.


       Deferred (PFI – Pending Further Information): -
        If after full assessment of the application, sufficient information is not
        available to make a decision a request for specific additional information is
        faxed to the broker and the matter is placed on hold pending a response.


   Declined (appeals process)


-   We are aware that in some instances the information on which we make a
    decision may not fully reflect the strength of the applicant.




                                                Page 15
              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

-   If you believe the strengths of a deal sufficiently mitigate and shortcomings we
    are happy to review our decision.


-   In these instances, please contact with your Business Development Manager
    and provide sufficient information to mitigate any adverse features and we will
    review our decision within 24hrs.


   Pending Further Information (PFI)


-   Deal‟s, which have been placed on hold pending further information, are
    followed up by our Team Administrators on a weekly basis, as well as by the
    Business Development Manager.


   Typical Approval Conditions


-   Approval conditions commonly included in our „Indicative Approvals‟ include: -


 Subject to satisfactory Commercial valuation report on (subject property) with
    maximum loan amount not to exceed 75% of the sworn valuation, or contract
    price, or $ (market value) (exclusive of GST), whichever is the lesser.


 Subject to satisfactory Residential valuation report on (subject property), with
    maximum loan amount not to exceed 80% of the sworn valuation, or contract
    price, or $ (market value) whichever is the lesser.


 Attornment Notice to be taken over rental cashflow of (subject property) and
    implemented in the event of default.


 Valuation(s) to be acceptable to ING DIRECT‟s Credit Risk unit.


 ING DIRECT‟s solicitors are to control funds in respect to the settlement of the
    proposed commercial property purchase @ (subject property) as per the
    relevant purchase contract supplied.

                                               Page 16
             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                  PRIORITY COMMERCIAL APPLICATION OVERVIEW



 The DIRECT‟s solicitors will investigate the nature of this borrowing (including
   commercial benefit) of the (subject trust) & prepare the ING DIRECT‟s security
   documentation, to suit ING DIRECT‟s requirements for Trusts. Any
   concerns/questions raised by ING DIRECT‟s solicitors must be
   answered/resolved to ING DIRECT‟s satisfaction before the borrowing can
   proceed. These costs are for the Borrower‟s care.


 ING DIRECT‟s Solicitors are to be presented with a copies of executed lease
   agreements in registrable form relating to commercial security property at
   (subject property) containing the following terms & conditions:-

    Total combined rental income of $ xxx Gross pa to be evident,

    Minimum 3 year term to apply

   (# Included where we have a material reliance on rental income for
   serviceability purposes).


 Top up option to apply at 75% (refer Top-up Covenant below)




 Commitment Fee $ (0.25% of Commercial Loan) to be provided prior to Letter
   of Offer being issued.

   NB: Commitment fee is fully refundable up until issuance of Letter of
   Offer.


 Commercial Valuation Fee of $ (refer fee schedule) to be provided prior to
   valuation being ordered,


 Copies of fully completed & signed Identification Forms on behalf of all
   applicants to be provided.




                                              Page 17
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW

COVENANT (TOP-UP CLAUSE)
COMMERCIAL
The maximum Loan to Lending Value Ratio (LVR) at any one time not to exceed
75%. ING DIRECT has the right to revalue the security property at its discretion.
The valuations will be undertaken by a valuer of ING DIRECT‟s choice and under
instruction of ING DIRECT. The cost of the valuations is to be borne by the
borrower. If any valuation obtained confirms that there has been a reduction in the
value of the security and the LVR exceeds 75%, then the borrower, within 14
days of ING DIRECT‟s request, will be required to reduce the loan amount or
provide suitable additional securities in order to reduce the LVR to a maximum of
75%.




                                             STAGE 6
                                            VALUATION

   Valuation Process


To further simplify and standardise our service we have adopted a standard scale
of fees for all valuations in major metro areas (see table below).


GST is not applicable on this fee, as the valuer is contracted by ING DIRECT and
not the client.


The valuation is ordered after indicative approval and the valuation fee has been
received.


                                                   Page 18
              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW



Our payment options are:


   A cheque payment by mail: addressed to:
    ING DIRECT
    Priority Commercial Mortgages
    GPO Box 4094
    Sydney NSW 2001
    Note: We may not act on a faxed copy of the cheque, this is at the discretion
    of the credit assessor.


   A credit card debit authority (Page 13 of application form) faxed to:
    1800 352 922
    Note: ING DIRECT does not accept Amex or Bankcard.


   A direct debit form authority faxed to:
    1800 352 922


Our Panel Valuers have committed to a 5-day turn around time, providing access
can be arranged within the first 24 hours.


   Panel Valuers


Valuer                                State      Phone/Fax              E-mail
Kohler Bird                           NSW        P: 02 9890 7977        admin@kohlerbird.com.au
                                                 F: 02 9890 7955
Opteon Valuers                        NSW        P: 1300 733 693        instructions@opteonvaluers.com.a
                                                 F: 1300 730 288        u


Herron Todd White                     VIC        P: 03 9642 2000
                                                 F: 03 9642 4422
Opteon Valuers                        VIC        P: 1300 733 693        instructions@opteonvaluers.com.a
                                                 F: 1300 730 288        u



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                    PRIORITY COMMERCIAL APPLICATION OVERVIEW

Opteon Valuers                        QLD        P: 1300 733 693        instructions@opteonvaluers.com.a
                                                 F: 1300 730 288        u
Chesterton Corporate                  QLD        P: 07 3222 3000
                                                 F: 07 3221 9386


Opteon Valuers                        SA         P: 1300 733 693        instructions@opteonvaluers.com.a
                                                 F: 1300 730 288        u



Opteon Valuers                        WA         P: 1300 733 693        instructions@opteonvaluers.com.a
                                                 F: 1300 730 288        u



Opteon Valuers                        TAS        P: 1300 733 693        instructions@opteonvaluers.com.a
                                                 F: 1300 730 288        u




   Valuation Fee Structure
    EMV or Purchase Price                                    Estimated Valuation Fee
                                                             (subject to confirmation)
    $0 - $500,000                                                           $600
    $501,000 - $750,000                                                     $800
    $751,000 - $1,000,000                                                   $950
    $1.01 - $1.5m                                                           $1,250
    $1.51m - $2.0m                                                          $1,750
    $2.1m - $2.5m                                                           $2,000
    $2.51m - $3m                                                            $2,500
    $3.1m - $4m                                                             $3,000


Where metro residential security is to be provided as additional security, costs in
this regard remain the same as with a standard ING DIRECT Home or
Investment Loan application. This can be summarised as:


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                    PRIORITY COMMERCIAL APPLICATION OVERVIEW



 The first residential property valuation (up to an estimated market value of
    $1m) is free;
 The valuation cost of a residential properties with an estimated market value
    of between $2m and $3m is $350 + GST (of which ING DIRECT pays $200);
 Second and subsequent metro residential valuations will cost $200 each
    (inclusive of GST)


   Valuers Check List
To assist the valuer and speed up the appraisal process the following information
should be provided wherever possible.


 Correct Address is provided,
 If Unit no, does it conform with its Lot No. in the strata Plan. Is there a copy of
    a the Strata Plan which can be supplied to the valuer
 Is the given client the registered proprietor
 Is it a current or recent purchase (not settled) or a re-finance. If a purchase,
    what is the contract price, is it GST inclusive or exclusive, are there any
    special clauses or conditions
 What is the estimate of value (any relevant information which could assist the
    valuer ie recently purchased, nearby sales known of which may not be
    registered as yet etc.)
 Access details must be accurate and give names, alternate contact numbers,
    background if not the actual client (ie managing agent, tenant, broker, solicitor
    etc)
 Those providing access should be forewarned that a valuer will be ringing or
    otherwise contacting them for access to a specific property over the next few
    days. We would like access at a reasonable time at short notice, hopefully
    within business hours
 Lease details where applicable are vital to have as early as possible. A copy
    of a current lease should be provided, however if this is not available, the
    minimum details in summary form are as follows:
 Lessor


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                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

 Lessee
 Commencement & Termination Date
 Term of Lease and any option periods
 Initial Rental
 Current Rental
 GST Inclusive or Exclusive
 Escalation Clauses – CPI / minimum increases p.a / can the rent be reduced
    at all
 Outgoings – are they recoverable, if so does that apply to all property
    outgoings or statutory rates and taxes, insurance etc. (Does this include
    maintenance, sinking fund, management fees?)
 All Special Lease Clauses
 Is the tenant a related entity to the registered proprietor
 If no lease, is there an informal tenancy agreement
 Can building plans or floor area surveys be provided or referenced as
    opposed to the valuer having to establish lettable areas through their own
    measurements
 Has the property been valued recently or at all
 Is there a copy of a s149 Certificate available
 Is there D.A approval for its current usage, if so when was this granted?


   Frequently Asked Questions (FAQ’s)


Can a tax invoice be issued for payment of valuation fees?
No, as valuation fees charged to the customer is input-taxed which means we do
not charge the customer the GST, then there is no GST for them to claim

What if the 5-business day turnaround time is not met? Why is there a
delay?
Please keep in mind that this a 5-day turnaround time is an agreement between
ING DIRECT and our panel valuers, which is well above industry standard
(usually 10 business days). Therefore, our team administrators remain in constant




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                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

contact with our valuers to ensure that the 5-day turnaround is not met. Some
delays are caused by:
   Not being able to gain access into the property within 24 hours of instruction.
   Valuer is waiting on documents such as leases, outgoings etc from the broker
    before the report can be completed.
When our valuers are instructed, we provide the broker contact details to ensure
that access can arranged as soon as possible if the contact for access cannot be
contacted. Our team administrators will provide you with any updated concerning
the valuation.


Can we refund the valuation fee if the valuation has come in low or the deal
is no longer proceeding?
Once the valuer has been instructed and inspected the property, the valuation fee
can no longer be refunded as we are required to pay the valuation fee.


What if the customers EMV or MV came in lower than the valuers market
value, are we able to get a refund in the difference of fees?
No.
Are we able to order the valuation directly through to the valuer?
No, as we will require the valuation report to be prepared for ING DIRECT and the
valuation fee structure is agreed between ING DIRECT and our panel valuers
only.


Can I get a copy of the valuation report sent to me?
Generally no, however in some exception cases we can send it to the client upon
their written request, specifying the reason for the request. The valuation will be
stamped, indicating that it is only to be used and/or relied upon for mortgage
purposes by ING DIRECT, prior to it being sent to the client.




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                    PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                     STAGE 7
                                FORMAL DECISION
                                (FINAL APPROVAL)


   Process


-   Valuation is received and signed off as acceptable by ING DIRECT,
-   Confirm that conditions of approval that need to be satisfied prior to settlement
    (as per indicative approval advise) have been finalised,
-   Letter of Offer (LOO) is prepared for all commercial and residential loans and
    checked,
-   Copy of Letter of Offer is emailed to the Broker for their information (copy only
    not for execution),
-   Banks‟ Solicitors (Hicksons Lawyers or Gadens National Mortgage Service)
    are instructed and original Letter of Offer forwarded to them to prepared
    mortgage documentation


   Typical Conditions


-   Attornment Notice to be taken over rental cashflow of (subject property) and
    implemented in the event of default.


-   Title ownership of the subject security property at (subject property) is to be
    confirmed on settlement by ING DIRECT‟s solicitor to be held in the sole name
    of (property owner)


-   The ING DIRECT‟s solicitors will investigate the nature of this borrowing
    (including commercial benefit) of the (related trust) & prepare the ING
    DIRECT‟s security documentation, to suit the ING DIRECT‟s requirements for
    Trusts. Any concerns/questions raised by the ING DIRECT‟s solicitors must be
    answered/resolved to the ING DIRECT‟s satisfaction before the borrowing can
    proceed. These costs are for the Borrower‟s care.

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               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW



-   Independent legal & financial advice has been waived in this instance, given
    the personal guarantor(s) wholly own the borrowing company.


-   ING DIRECT‟s Solicitors are to be presented with a copies of executed lease
    agreements in registrable form relating to commercial security property at
    (subject property) containing the following terms & conditions:-
       Total combined rental income of $(xxx) net pa to be evident,
       Minimum 3 year term


-   ING DIRECT‟s solicitors are to control funds to pay out and close (existing
    bank loan) in the names of (related borrower) of approx $(xxx)


-   Borrower to acknowledge that a default under this loan or any other loan with
    ING DIRECT shall constitute default by the borrowers under each loan.




                                               STAGE 8
                              SOLICITORS INSTRUCTIONS

Process


-   Instructions to prepare mortgage documentation and attend settlement on our
    behalf are issued to our Solicitors together with: -


           Original Letters of Offer,
           Copy of full Contract for Sale,
           Copy of full Lease agreement,
           Copy of stamped and marked Trust Deed,
           Copy of Constitution of the Company
           Discharge Form

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                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

            A copy of the valuation report
            Guarantor Pack


      NB: Where full copies of related documents (contract for sale, lease
      agreements etc) are not provided, our Solicitors will request these from the
      Clients (or their solicitor) – this may add a day or so to the documentation
      process.


Settlement Tracking
Our solicitors provide excellent websites for tracking the status of commercial
applications (as well as regular commentary on their discussions with clients).
The links to the sites are below:
Hicksons: www.secure.hicksons.com.au
Gadens:      www.gadensnms.com.au




     PCM Solicitors
Solicitor           State                                    Contact
Hicksons            Level 32/2 Park Street                   Terri Waesch
NSW
                    Sydney NSW 2000                          P: 02 9293 5350
                                                             F: 02 9293 5333
                                                             E: terri.waesch@hicksons.com.au
                                                             W: www.hicksons.com.au
Gadens NMS          Level 24, Bourke Place                   Melissa Campisi
VIC                 600 Bourke Street                        P: 03 9620 7311
                    Melbourne VIC 2000                       F: 03 9620 7511
                                                             E:
                                                             ingdirect@vic.gadens.com.aubank@vic.
                                                             gadens.com.au
                                                             W: www.gadens.com.au
Gadens NMS          Level 10, 410 Queen Street               Benita Hoad
QLD                 Brisbane QLD 4001                        P: 07 3226 9000 or 07 3226 9020
                                                             E: ingcommercial@nms.gadens.com.au
                                                             W: www.gadens.com.au
Gadens NMS          Level 23, 44 St Georges Terrace          Joe Claudio



                                                  Page 26
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                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

CBA Legal           Perth WA 6000                            P: 08 9223 9223
WA                                                           F: 08 9223 9224
                                                             E: incommercial@nmsperth@com.au
                                                             W: www.gadens.com.au
Gadens NMS          Level 15, FGIC Building                  Michael Smith
WA & NT             211 Victoria Square                      P: 08 8233 0678
                    Adelaide SA 5001                         F: 08 8205 0805
                                                             E: ingcommercial@fisherjeffries.com.au
                                                             W: www.gadens.com.au
Gadens              93 York Street                           Robert Greatbatch
TAS                 Launceston TAS 7250                      P: 03 6338 5552
                                                             F: 03 6337 5554
                                                             E: ingcommercial@raepartners.com.au
                                                             W: www.gadens.com.au




    Solicitors Fees and Charges


This is a guide to the costs that may be charged directly to the borrower by the
solicitors representing the ING DIRECT. Please note that this does not include all
costs that may be payable by the borrower in relation to obtaining finance for the
purchase of property


     Maximum Fees and Disbursements
     Documentation and settlement costs payable by the borrower
     Service                                                                 ALL STATES
     Documentation & settlement fee
     loans $0.00 to $600,000.00 (exclusive of GST)                                $600
     loans over $600,000.00 (exclusive of GST)                             0.1% of principal
     Disbursements – search fees, administration
     out-of-pocket fees, settlement fees – maximum                              $150.00
     charge (exclusive of GST)
     Registration fee (der dealing)                                              $75.00



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                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

    Company search (per search)                                                  $30.00
    Stamp duty                                                                   At cost
    Matter not proceeding (maximum fee)                                         $100.00
    Additional interstate security (exclusive of                                $200.00
    GST)
    Variation (exclusive of GST)                                                $150.00
    Company charge (exclusive of GST)                                           $100.00
    Substitution (exclusive of GST)                                             $600.00
    Old system title and other special titles (eg.                              $200.00
    Company title, community title) (exclusive of
    GST)
    Old system search fee (exclusive of GST)                                     At cost
    Lease – consent costs (exclusive of GST)                                    $150.00




   Solicitors Procedures
    Documents        Commercial Term Loan Facility Letter of Offer (+ copy)

    provided by             Mortgage
                            Memorandum 8303572
    solicitor
                            Directions to pay
                            Undertaking
                            Direct Debit Request Form
                            Loan Account Instructions Form
                            Warranty
                            ING DIRECT Solicitors Fee (payable by client)
                            List of APRA approved Insurers


    Documents               Letter of Offer duly signed or initialled
    required for            The Mortgage duly executed and stamped to secure a total loan of $xxx.
    completion              Please ensure that the mortgage is stamped prior to return
                            Direction to Pay duly executed
                            Undertaking duly executed
                            Direct Debit Request Form completed and signed
                            Loan Account Instructions Form completed and signed
                            Warranty duly executed


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          ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
               PRIORITY COMMERCIAL APPLICATION OVERVIEW

                     Bank cheque in payment of our account
                     A certificate of currency issued by the insurer and not a broker or an
                     original building insurance policy for $xxx on a replacement basis noting
                     ING Bank (Australia) Limited of 140 Sussex Street, Sydney NSW 2000 as
                     Mortgagee. The insurance must be effected with one of the approved
                     insurers
                     Survey Certificate by exception only. ING DIRECT will advise specifically
                     where a survey certificate is required, in all other instances provision of
                     Survey Certificate is not required. Where a Survey Certificate is required it
                     must: -
                     (i) Identify the land by reference to its present title particulars,
                     (ii) Identify any building erected on the land by street number or name and
                     (iii) Certify that there are no encroachments by or upon the property and
                     that the Local Government Regulations and/or Environmental Planning
                     and Assessment Act Regulations have been complied with as to the
                     distance of walls, eaves and gutters from boundaries.
                     Zoning Certificate, not more than 2 years old and to confirm current zoning
                     as listed in the valuation report.
                     Land Tax Certificate (for refinance and increase requests only).
Special              Cheque in favour of the Land & Property Information NSW in the sum of
Conditions /         $xxx in payment of registration fees
Requirements         Existing ABC Bank loan number 12344556 is to be repaid in full and
                     closed at settlement. YOU WILL NEED TO ARRANGE FOR THIS.
                     Discharge of Mortgage no 123445 from ABC Bank will be required at
                     settlement. YOU WILL NEED TO ARRANGE FOR THIS.
                     Copy of lease number 12344556.
                     Copy of variation of lease number 12344556.

                     Copy of any other lease/s in place for the properties.




                                 STAGE 9

                            SETTLEMENT



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                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW


   Process


Commercial deals for NSW are completed through Hicksons. They fax their
certification to our settlements department usually the day before settlement.
Settlements then draw the settlement cheques in accordance with their
certification. Hicksons collect the cheques from ING DIRECT at midday on
settlement day.


Settlements in other states are handled by firms in the Gadens National Mortgage
Service (NMS) group. They certify to settlements department 2 days prior to
settlement. Settlements then send the settlement funds electronically to Gadens
in accordance with the certification on settlement day.

   PCM Solicitors (see above)




PCM Contacts List
PCM Address
140 Sussex Street
Sydney NSW 2000

PCM Mailing Address
GPO Box 4094
Sydney NSW 2001

PCM Fax
1800 352 922

PCM Team

      Name                   Position                Phone                           E-mail
                                                   Contacts
 Clem Marcocci         Senior Manager            02 9028 4112        clem.marcocci@ingdirect.com.au
                                                 0401 145 180
 Peter Webster         Credit Assessor           02 9028 4326        peter.webster@ingdirect.com.au
 Denis Starr           Credit Assessor           02 9028 4186        denis.starr@ingdirect.com.au
                       (Existing Business)
 Ross Bradbury         Credit Assessor           02 9028 4943        ross.bradbury@ingdirect.com.au
 Mats Lindfors         Team Administrator        02 9028 4523        mats.lindfors@ingdirect.com.au



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                       PRIORITY COMMERCIAL APPLICATION OVERVIEW



PCM Related Contacts
Who                             Relation                          Contact
Introducer Solutions            Broker Enquiries                  www.introducer.ingdirect.com.au
                                                                  Hotline: 1300 656 226
                                                                  Mon – Fri: 8:30am – 5:30pm

ING DIRECT Call Centre          Post Settlement Enquires          133 464
                                for Clients




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                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW


Parameter:                                 Commercial Loan Products – Commercial Property Security


1. Acceptable loan purpose                    Debt refinance ( commercial; industrial & retail securities)
                                              Property purchase
                                              Business & Investment Capital needs
                                              Equity reimbursement
                                              Note cash-out is limited to 20% of the property value


2. Acceptable security property               Income producing fully tenanted non specialised investment
Registered First Mortgage over:                property.
                                              Owner occupied property used for commercial purposes and
                                               company can demonstrate debt service /interest cover at 1.4
                                               times.
                                              Retail shops, with subject site to consist of a minimum of 10
                                               adjoining shops (vacancy levels not to exceed 25%) located in an
                                               established lending area with no other adverse features
                                              Panel beating and mechanical operations of a „clean‟ nature (the
                                               latter subject to Risk Management approval,
                                              Childcare centres (minimum of 3yrs profitable operation or lease
                                               in place with an established childcare business). A charge over
                                               the business may be required where the childcare centre is
                                               owner occupied.
                                              Commercial properties greater than 50 sq m‟s


3. Collateral security                        Owner occupied residential or investment property, including the
(i.e. Make Weight)                             principal place of residence of an applicant or guarantor,
                                               providing the loan is clearly for business purposes


4. Acceptable security property               Major target markets are major metropolitan areas and
location                                       established regional areas where ING DIRECT Australia (INGD
                                               AUS) has a Business Development Manager presence (see
                                               Acceptable Lend Area List).
                                              ING DIRECT may seek amortisation or a lower LVR in some
                                               instances, depending on the nature and location of security.


5. Interest Rate                              INGD Commercial Cash Rate.

Benchmark – Variable rate                     INGD AUS Rate for relevant fixed period [eg 1-5 Yr )

Benchmark – Fixed rate                        Plus the applicable commercial margin.


6. Credit inquiries                           CRAA Reports are conducted on all participants in the borrowing
                                               structure and must be found to be satisfactory
                                              For refinance applications, evidence is required that the existing
                                               facility has been well conducted via 6 months bank statements.
                                               ING DIRECT reserves the right to request trading account
                                               statements on a case by case basis.




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                           PRIORITY COMMERCIAL APPLICATION OVERVIEW


7. Early prepayment                           One month‟s additional interest on the original loan amount if the
                                               loan is repaid in full within five years from the settlement date.
(All Loans)                                   Economic Break Cost Policy calculation for fixed rate loans, plus
                                               one month interest.


8. Non-recourse lending                       Not permitted


9. Personal                                   A practical, commercial approach is taken to the level of
                                               Guarantees required.
                                              Joint & Several Guarantees are generally required from:
                                                The Shareholder Directors of the Borrowing Entity and any
                                                   Corporate Shareholder of the Borrowing Entity
                                              Joint & Several Guarantees may be required from:
                                                Other Corporate Entities controlled by the Borrower or any
                                               Guarantor
                                                The adult Beneficiaries/Unit Holders of any Trust controlled
                                               by the Borrowing Entity or any Guarantor
                                              In the case of the Borrower being a limited liability partnership or
                                               syndicate, several guarantees of the individual Borrowers or Unit
                                               Holders will be required




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                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

10. Interest cover – Investment &
Owner Occupied                              1.3 times minimum interest cover for stand alone commercial
                                             “investment” transactions. Interest coverage is calculated from
                                             net rental over interest costs at the higher of the actual interest
                                             rate or the floor assessment rate of 8%.
                                            1.4 times minimum interest cover is required for “owner occupied”
                                             & investment commercial transactions. Including mixed
                                             residential / commercial loans.
                                            Lower interest cover may be acceptable with good cash surplus
                                             or lower LVR‟s.
                                            Interest Cover being the total of personal taxable income / net
                                             operating revenue / rent after all operating expenses but before
                                             interest, tax, depreciation (where allowed) and amortisation
                                             (Personal taxable income, net rental or EBITDA) divided by other
                                             external loan repayments plus the projected annual interest
                                             expense, being:
                                              Variable or fixed < 3 years
                                                  - COF + margin + interest rate buffer ( # ) to arrive at “Plug
                                                       Rate”
                                                  - # Buffer 2.0% for commercial loans, 1.5% for residential
                                                     loans.
                                                  - The assessment rate to be used for servicing will be the
                                                     higher of the ING DIRECT “Plug Rate” (as above) or the
                                                     „floor‟ assessment rate of 8%.
                                                Fixed > 3 years
                                                  - COF + margin.
                                               NOTE:
                                                Other commercial debt is assessed at the higher of the ING
                                                   DIRECT „Plug Rate‟ (as above) or the „floor‟ assessment rate
                                                  of
                                                   8%.
                                                Other residential debt is assessed at the higher of the current
                                                  Mortgage Simplifier rate plus a „plug rate‟ of 1.5% or the
                                                  „floor‟ assessment rate of 8%.
                                            All term loans are to be tested on the following basis:
                                                Interest cover including a plug rate – the cover is to exceed
                                                  the hurdle as set out in this policy.
                                                P & I so as to reduce the LVR to 60% after 5 years. at plug
                                                  rate, unless fixed rate applies.
                                                P & I fully amortising over 15 years at plug rate, unless fixed
                                                  rate applies.

                                         The hurdle for all three tests is as set out in the first two bullet points
                                         of this section.

                                            These three tests must be included in Term Loan Expose‟s which
                                             allow review of how the asset / cash flow performs under the
                                             various scenarios.


11. Loan amount – maximum                   Individual loans up to $2 million.
                                            Maximum one obligor exposure up to $3 million.
                                            Any proposals above $2 million may be referred to INGD AUS
                                             Commercial Property Finance Division (CPF) by the Priority
                                             Commercial Team




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                          PRIORITY COMMERCIAL APPLICATION OVERVIEW


12. Loan amount – minimum                    $250,000 for commercial property secured transactions although
                                              we will consider lower loans if taken with other residentially
                                              secured loans.


13. Loan terms                               Maximum loan term of 15 years
                                             P&I            :    up to 15 years, with full amortisation.
                                             Interest only :     1-5 years (with a maximum period of 5
                                              years).
                                              Note: updated financial statements, and lease agreements will be
                                              required upon rollover/renewal of any Interest Only facility.

14. Loan type                                Fixed or Variable Rate - Interest only and P&I


15. LVR                                      Maximum 75% (for P&I loans) for acceptable security located in
                                              major metro area. Interest only loans are limited to 70%.
                                             Maximum LVR of 65% for childcare centres (valued on a vacant
                                              possession basis).
                                             Maximum LVR of 60% for Stand-alone commercial investment
                                              transactions where full financial disclosure (i.e. related personal &
                                              company tax returns) is not provided – defined as „Lease Doc‟
                                              loan.
                                             A lower LVR may apply on a case by case basis depending on
                                              security type/location .


16. Amortisation                             ING DIRECT has the right at its discretion to seek
                                              amortisation/debt reduction depending on the nature/structure of
                                              the transaction.


17. Margins (Net Minimums)                   Fixed loans: Margin over INGD AUS fixed Rate. 1-5 years.
                                             Variable loans: Margin over INGD AUS Commercial Cash Rate.
Margins quoted are gross to ING              Larger loans of over $1M to be priced on risk.
DIRECT – inclusive of originator             < $1m, see fortnightly pricing schedule.
trail commission
Borrowers will be quoted effective
interest rates whenever possible
as opposed to quoting straight
margins.

18. Commitment Fee                           0.25%.
                                             Any reduced Fees to be signed off by Senior Manager
                                              Commercial Mortgages or delegates.
                                             Commitment fee represents 0.25% of the application amount
                                              however is refundable if the application is declined or withdrawn
                                              prior to issuance of the formal Letter of Offer.


19 Option to fix /                           Available once only upon request at the discretion of INGD AUS
                                              for Variable rate – higher rate (INGD AUS discretion) to apply
Variation Fee                                 with conditions.
                                             Variation fee of $290 per item including security substitutions and
                                              lease consents.



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20. Valuation                                   By INGD AUS Panel Valuer with valuer to be instructed by the
                                                 INGD AUS PCM Team.
                                                Brokers/clients cannot instruct commercial valuers on the INGD
                                                 AUS behalf.
                                                Valuation to be no more than 90 days old on the date of
                                                 settlement without Risk sign off.
                                                Valuation Fee to be paid prior to INGD AUS instructing valuer.
                                                 The PCM Team will advise quoted valuation cost at time of
                                                 assessment of loan application.
                                                Valuations are to be net of GST


21. In-one-line value                           Adopted in the case of multi unit developments – generally
                                                 represents a discount of around 15% to gross realisation value


22. Lending against ‘added value’               Not Generally Permitted. The lesser of current valuation or
                                                 purchase price will be applied with the appropriate LVR
                                                 calculation.


23. Owner occupied property                     Where commercial security property is substantially owner
Valuations                                       occupied, the Valuer is instructed to provide an assessment of
                                                 the differential in value of the property in a „vacant possession‟
                                                 condition as compared to „tenanted at market rental‟ condition.

                                                 The loan to valuation ratio is based on the lower of these two
                                                 values.

                                                 Amortisation will normally be required for owner occupied
                                                 properties and depending on loan size/LVR a fixed and floating
                                                 charge over the operating company may also be sought.


24. Specialised security property               Property containing an element of specialisation may be
                                                 considered if there are mitigating factors (e.g. low LVR).
                                                Generally not acceptable are hotels (“pub” applications should be
                                                 referred to INGD AUS Commercial Property Finance Division –
                                                 (CPF), motels, caravan parks, serviced apartments or serviced
                                                 offices, nursing homes, hospitals, service stations [unless leased
                                                 to a major operator who is responsible for environmental
                                                 damage], abattoirs, boarding houses, strip shops (i.e. less than
                                                 10 shops), and commercial retail properties less than 50 sq m or
                                                 any other property requiring specialist management


25. Substitution of security                    Will be considered but at the absolute discretion of INGD AUS


26. Vacant land / broad acres                   Lending against vacant land not considered acceptable security
                                                 unless it forms part of top up, collateral security.


27. Direct Debit authority                      Required in all cases – interest is paid direct from the Borrower‟s
                                                 account into the Lender‟s account – no pipeline risk.



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                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
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28. Privacy Act declaration                       Required up front from each participant in the borrowing structure
CRAA                                               including guarantors to enable credit inquiries to be made

29. Acceptable Lend Areas                  Acceptable 75% lend areas are
                                              Sydney
                                              Melbourne
                                              Brisbane
                                              Adelaide
                                              Perth
                                              Great Hobart
                                              Canberra
                                              Newcastle
                                              Gold Coast – Tweed
                                              Canberra – Queanbeyan
                                              Wollongong
                                              Sunshine Coast

                                           Acceptable 70% Lend areas are:
                                              Geelong
                                              Townsville\
                                              Cairns
                                              Toowoomba
                                              Launceston
                                              Burnie – Devonport
                                              Rockhampton
                                              Mackay
                                              Mandurah
                                              Bundaberg
                                              Bunbury
                                              Coffs Harbour
                                              Hervey Bay
                                              Gladestone
                                              Port Macquarie
                                              Nowra-Bomaderry




Feature                                 Description
General Description                     Variable and fixed rate loans under $2 million secured by commercial
                                        property

Target Market                                  -
                                               Professional investors
                                               -
                                               Owner occupiers with excellent track record (long profitable
                                               trading history)
Loan Purpose                                - The purchase or refinance of commercial property
                                            - Loans not for working capital purposes or residential
                                               development
Eligible Borrowers                      Personal borrowers, companies and trusts
Commitment Fee                           Commitment fee represents 0.25% of total application amount and:


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                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW

                                             -    Is payable upon application
                                             -    Is refundable if the application is declined or withdrawn prior to
                                                  issuance of the Letter of Offer
Loan Term                               Variable loans:
                                        P&I – 5, 10 and 15 year terms
                                        IO – 5 year term
                                        Fixed loans:
                                        1, 2, 3, 4 and 5 year terms
Interest Rate                           Variable loans:
                                        $250,000 to $2m – ING DIRECT commercial cash rate + margin%
                                        Fixed loans:
                                        $250,000 to $2m – daily transfer price + margin%
                                        NB: Rates are subject to change and the final rate charged will be the
                                        rate at day of settlement. The base rate normally includes ING DIRECT
                                        Treasury Costs
Repayment Type                          Principal & Interest:
                                        Repayments may be fully amortising over the loan term
                                        Interest only:
                                             - 5 year term: Interest only repayments for up to 5 years, with
                                                  lump sum payment at the end of the 5 years (or re-negotiable
                                                  for a further term of 5 years if loan conducted satisfactorily)
                                             - 10 year term: Interest only repayments for up to 5 years
                                                  converting to P&I for the remaining 5 years
                                             - 15 year term: Interest only repayments for up to 5 years
                                                  converting to P&I for the remaining 10 years
Early Repayment Fee                     Variable rate loans – 1 month‟s additional interest on the original loan
                                        amount if the loan is repaid in full within five years from the settlement
                                        date.
                                        Fixed rate loans – 1 month‟s interest on the amount repaid plus break
                                        costs (if break costs applicable)
Repayment Method                        Direct Debit
LVR                                     75% maximum for Principal and Interest Loans
                                        75% maximum for Interest Only Loans
Security                                     - Non specialised Commercial (Retail, industrial, office,
                                                  residential) in major metro areas
                                             - Lending outside Capital Cities is considered on a case-by-case
                                                  basis (i.e. reduced LVR)
Minimum Loan                            $250,000 (unless existing ING DIRECT client or offering additional
                                        residential loan)
Maximum Loan                                 - $2 million for total facility; up to $3 million available for group
                                                  exposure
                                             - Higher amounts may be available subject to confirmation from
                                                  Commercial Property Finance that it does not fall into its target
                                                  market
Deferred Establishment Fee              N/A

Valuations                              - Mandatory
                                        - ING DIRECT to instruct accredited panel valuers
                                        - Client must pay for the valuation
                                        - Indicative cost is $1 per $1000 of Estimated Market Value (see ING
                                          DIRECT Introducer site for exact fee structure). This cost is requested
                                          to be paid prior to issuance of the Letter of Offer
Lump sum payments                       Unlimited on variable rate loans. $20,000 per calendar year on fixed rate
                                        loans



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                        ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                             PRIORITY COMMERCIAL APPLICATION OVERVIEW

Additional regular repayments             Unlimited on variable rate loans. Additional repayments of up to $20,000
                                          per calendar year on fixed rate loans without incurring break costs.

Redraw                                    - Available on both P&I and IO variable rate loans
                                          - Minimum redraw of $10,000 applies
Redraw Fee                                $150 per redraw
Statements                                     - P&I repayments: quarterly statements
                                               - IO repayments: monthly statements
Repayment Holiday                         Not permitted
Repayment Order                           All outstanding fees and arrears interest owed are capitalised to the loan
                                          amount
Interest calculations                          -   Interest is charged only on the principal advanced
                                               -   Monthly interest owed equals the daily interest rate multiplied by
                                                   unpaid balance at 5pm Sydney time each day of the month
                                               - Daily interest rate is the interest rate (annual percentage rate)
                                                   divided by 365 at 5pm Sydney time each day
                                               - Interest charged in arrears
Interest Rate Setting                          - Variable rates are based on the official cash rate and will
                                                   change from time to time
                                               - Fixed rates are guaranteed for the fixed term set
Broken Period Interest                    If the drawdown date is not an interest due date (i.e. first of each month),
                                          broken period interest is calculated. No principal is repaid on the initial
                                          broken period repayment (interest only)

Default Interest                               -   3% additional interest payable on any amount not paid by the
                                                   due date
                                               -   Debited to account monthly in arrears on the 1st of each month


Interest Rate Change Notification              -   Minimum of 20 days notice provided to customers of upcoming
                                                   increases to the minimum repayment amount
                                               -   Variable rate changes are advertised in the national press on or
                                                   before the effective date
Discharge                                 On termination of the loan, the entire balance outstanding must be
                                          repaid. Discharge amount includes:
                                              - Current balance
                                              - Unpaid interest estimated to payout date
                                              - Unpaid fees
                                              - 1 month‟s interest
                                              - If fixed rate loan: Fixed rate break costs (if applicable)




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                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW

Feature                                 Description
General Description                     Equity line of credit loan, secured by commercial property


Target Market                                -   Professional investors
                                             -   Owner occupiers with excellent track record (long profitable
                                                 trading history)
Loan Purpose                                - The purchase or refinance of commercial property
                                            - Loans not for working capital purposes or residential
                                                 development
Eligible Borrowers                      Personal borrowers, companies and trusts
Commitment Fee                           Commitment fee represents 0.25% of total application amount and:
                                            - Is payable upon application
                                            - Is refundable if the application is declined or withdrawn prior to
                                                 issuance of the Letter of Offer
Loan Term                                   - Within 5 years, must be repaid in full or re-negotiated for
                                                 additional 5 year term
                                            - Loan amount and interest rate reviewed annually; can be
                                                 changed at any time with 30 days‟ written notice to borrower
Interest Rate                           ING DIRECT Commercial Cash rate + margin
                                        NB: Rates are subject to change and the final rate charged will be the
                                        rate at day of settlement
Repayment Type                          Interest only
Repayment Frequency                     Monthly

Repayment Method                        Direct Debit
LVR                                     Up to 70% maximum
Security                                     -  Non specialised Commercial (Retail, industrial, office,
                                                residential) in major metro areas.
                                            - Lending outside Capital Cities is considered on a case-by-case
                                                basis (i.e. reduced LVR)
Minimum Loan                            $250,000 (unless existing ING DIRECT client or offering additional
                                        residential loan)
Maximum Loan                                - $2 million for total facility; up to $3 million available for group
                                                exposure
                                            - Higher amounts may be available subject to confirmation from
                                                Commercial Property Finance that it does not fall into its target
                                                market
Early Repayment Fee                     No

Valuations                                   -Mandatory
                                             -ING DIRECT to instruct accredited panel valuers
                                             -Client must pay for the valuation
                                             -Indicative cost is $1 per $1000 of Estimated Market Value (see
                                              ING DIRECT Introducer site for exact fee structure). This cost is
                                              requested to be paid prior to issuance of the Letter of Offer
Lump Sum Payments                       Any amount acceptable
Additional Regular Repayments           Not permitted


Redraw                                       -   Only in multiples of $10,000
                                             -   Request made in writing (letter or fax) or by telephone
                                             -   Requires one business day‟s notice


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                        ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
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Redraw Fee                                Nil
Statements                                Issued monthly
Repayment Holiday                         Not permitted
Repayment Order                           All outstanding fees and arrears interest owed are capitalised to the loan
                                          amount.
Interest calculations                          -   Monthly interest owed equals the daily interest rate multiplied by
                                                   unpaid balance at 5pm Sydney time each day of the month
                                              - Daily interest rate is the interest rate (annual percentage rate)
                                                   divided by 365 at 5pm Sydney time each day
                                              - Interest is charged only on the principal advanced
Interest Rate Setting                     Variable rates are based on the official cash rate and will change from
                                          time to time

Broken Period Interest                    If the drawdown date is not an interest due date (i.e. first of each month),
                                          broken period interest is calculated. No principal is repaid on the initial
                                          broken period repayment (interest only).

Default Interest                               -   3% additional interest payable on any amount not paid by the
                                                   due date
                                               -   Debited to account monthly in arrears on the 1st of each month

Interest Rate Change Notification              -   Minimum of 20 days notice provided to customers of upcoming
                                                   increases to the minimum repayment amount
                                               -   Variable rate changes are advertised in the national press on or
                                                   before the effective date
Discharge                                 On termination of the loan, the entire balance outstanding must be
                                          repaid. Discharge amount includes:
                                              - Current balance
                                              - Unpaid interest estimated to payout date
                                              - Unpaid fees
                                              - 1 month‟s interest




                                                         Page 41
                          ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                               PRIORITY COMMERCIAL APPLICATION OVERVIEW

Priority Commercial Mortgages Overview
Target Market
     Commercial Mortgages from $250k to approximately $2m (i.e. maximum property value normally up
      to $4m). The dollar limit is applied to individual loan size, therefore the group exposure may be larger
     We define the market by security (i.e. commercial property) not purpose
     Property investors and experienced owner operators (with proven business track record)
     Non specialised commercial security (traditional industrial, office with alternative use and prime retail
      properties)
     Major metro (regional on a case by case basis and/or reduced LVR)
     No property development
Product Features
     Maximum term is 15 years P&I or 5 years IO
     0.25% commitment fee (refundable until issuance of formal Letter of Offer)
     Carded Indicative Variable Rate (ING DIRECT Commercial Cash Rate = RBA Cash Rate + margin)
     Carded Indicative Fixed Rate (up to 5 years) = (Relevant swap rate % + margin). Rates are
      determined at settlement
     Rates are flexible for quality business
     Full additional repayment flexibility on variable rate loans and up to $20k pa on fixed rate loans
     Redraw ability of variable rate loans (minimum redraw $10k at a cost of $150)
     Early repayment fee = 1 month's additional interest on the original loan amount if discharged within
      the first 5 years
     Legal costs for loans under $600k is approx. $600. Legal costs for loans above $600k is approx.
      0.1% of commercial loan amount plus disbursements. We use Hicksons in NSW and Gadens
      interstate
     Valuation cost = see valuation matrix attached or via the introducer site at
      https://introducer.ingdirect.com.au
         Benefits
      Generally a set and forget type facility (ING DIRECT reserves the right to review loans at its
      discretion)
      No ongoing fees or charges
      Low commitment fee (0.25%)
      Repayment flexibility
      Competitive and flexible pricing


Service Standard
     Indicative decision within 2 - 3 working days
     Valuation 5 working days



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                            ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
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       Formal Approval approximately 8 working days


        Benefits
        Accessibility to Credit Assessors to discuss applications
        Same Credit Assessor for related residential and commercial applications
        Preferred valuation turn around times and cost structure



Remuneration
       Upfront commission on commercial loans now equivalent to that paid on residential loans introduced
        to ING DIRECT. The exception being upfront on commercial loans is capped at a loan size of $2.5m,
        as apposed to $2.0m on residential loans
       0.25% trail commission


Risk Profile
       Maximum LVR 75% on Principal and Interest Loans, 70% on Interest Only loans
       Interest coverage of 1.40 times (the higher of actual rate plus 2.0% assessment margin or ING
        DIRECT Floor Rate of 8%)
       Average of last 2 years tax returns
       Stand alone: Interest coverage of 1.3 times (the higher of actual rate plus 2.0% assessment margin
        or ING DIRECT Floor Rate of 8%) from net rental


PCM Primary Contacts
Clem Marcocci:              Senior Manager – 0401 145 180 or 02 9028 4112
Peter Webster:              Credit Assessor, New Business – (02) 9028 4326
Denis Starr:                Credit Assessor, Existing Business - (02) 9028 4186
Ross Bradbury:              Credit Assessor – (02) 9028 4943
Mats Lindfors:              PCM Team Administrator - (02) 9028 4523 (for general loan status enquiries)


Application, PCM Checklist and other information visit the ING DIRECT Introducer Site at
https://introducer.ingdirect.com.au


PCM Application Fax Number: 1800 352 922




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                                                         ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                                                PRIORITY COMMERCIAL APPLICATION OVERVIEW

Priority Commercial Mortgages:

Product Information and Fees

  Product       Owner     Repayment Type            Maximum           Maximum        Maximum         Additional              Redraw             Access to Funds                 Early
   Type        Occupie                               Term               Loan           LVR          Repayments                                                                Repayment
                 r or                                                  Amount        (No LMI)                                                                                    Fee
               Investor
  Variable       Both           P&I or IO            15 years                                                                   Yes           In writing (letter of fax) or
   Rate                   (IO is available for a    (minimum 5         $2 million       75%              Yes             Minimum $10,000             by telephone                Yes
                          maximum period of 5         years)                          (70% I/O)                          ($150 per redraw)
                                  years)
 Fixed Rate      Both           P&I or IO          15 years (min                                         Yes
                          (IO is available for a   5yr term, max       $2 million       75%          Max. $20,000               No                        No                     Yes
                          maximum period of 5      5yr fixed rate)                    (70% I/O)      per calendar
                                  years)                                                                 year
 Equity Loan     Both                                Evergreen                                                                                In writing (letter of fax) or
                                   IO               (Reviewable        $2 million       70%              Yes                    Yes                  by telephone                No
                                                   every 5 years)
 Residential     Both           P&I or IO             30 years                                                                  Yes           In writing (letter of fax) or
 any product              (IO is available for a    (minimum 5         $2 million    70% - 80%           Yes              Minimum $2,000             by telephone                Yes
                          maximum period of 5          years)                                                            (N/A for IO loans)
                                  years)




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                             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

Commercial Loans Product Chart

 Commitment Fee
 A commitment fee of 0.25% of the total commercial loan amount is payable upon application.
 This fee is refundable up until the point of issuance of the formal letter of offer.


 Early Repayment Fee
 If the Borrower repays the loan in full within five years from the settlement date, the Borrower
 must pay interest to the date of repayment plus one month‟s additional interest on the original
 loan amount.


 Combination Loans
 If more than one loan is involved in a combined loan, the upfront commission will be based on
 the total loan amount. Applications can request a combination of loans, namely variable rate,
 fixed rate or commercial equity facility. A minimum of $50,000 per loan in a combined loan
 applies.


 Commercial Purpose with Residential Security
 Applicants may request any residential loan where the purpose is commercial however the
 security is residential property.

 Please refer to the Retail Loan Product Chart for appropriate fees and charges.


 Change to Letter of Offer
 A fee of $290 applies to make changes to the Letter of Offer between the disclosure (date of
 original issue) and settlement.


 Pre-approval
 ING DIRECT does provide access to pre-approval for commercial loans. A non-refundable
 $500 pre-approval fee is payable, however this amount can be form part of the 0.25%
 commitment fee when the borrower has located a property and makes a formal application
 with ING DIRECT.


 Bank Guarantee
 Bank Guarantees are available to customers secured by commercial property. A non-
 refundable Commitment Fee equal to the greater of $500 or 0.25% of the guarantee amount
 is payable upon application. A Guarantee Fee of the greater of $500 or 0.25% of the
 guarantee amount is payable Annually in Advance.




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                                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                     PRIORITY COMMERCIAL APPLICATION OVERVIEW



Commercial Loans Legal Fees and Charges

ING DIRECT Solicitor Fees and Charges

This is a guide to the costs that may be charged directly to the borrower by the solicitors representing
ING DIRECT. Please note that this does not include all costs that may be payable by the borrower in
relation to obtaining finance for the purchase of property.


Maximum Fees and Disbursements
Documentation and settlement costs payable by the borrower
Service                                                                       ALL STATES
Documentation & settlement fee
loans $0.00 to $600,000.00 (exclusive of GST)                                     $600
loans over $600,000.00 (exclusive of GST)                                    0.1% of principal
Disbursements – search fees, administration out-of-
pocket fees, settlement fees – maximum charge                                     $150.00
(exclusive of GST)
Registration fee (der dealing)                                                    $75.00
Company search (per search)                                                       $30.00
Stamp duty                                                                        At cost
Matter not proceeding (maximum fee)                                               $100.00
Additional interstate security (exclusive of GST)                                 $200.00
Variation (exclusive of GST)                                                      $150.00
Company charge (exclusive of GST)                                                 $100.00
Substitution (exclusive of GST)                                                   $600.00
Old system title and other special titles (eg. Company                            $200.00
title, community title) (exclusive of GST)
Old system search fee (exclusive of GST)                                          At cost
Lease – consent costs (exclusive of GST)                                          $150.00




                                                                 Page 47
                             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

Commercial Loans Valuation Fee

Commercial Valuation Fee Structure
Fee applicable for valuing standard commercial properties located in Sydney, Melbourne &
Brisbane.
EMV or Purchase Price                                       Estimated Valuation Fee
                                                            (subject to confirmation)
$0 - $500,000                                               $600
$501,000 - $750,000                                         $800
$750,001 - $1,000,000                                       $950
$1.01m - $1.5m                                              $1,250
$1.51m - $2.0m                                              $1,750
$2.1m - $2.5m                                               $2,000
$2.51m - $3m                                                $2,500
$3.1m - $4m                                                 $3,000
GST is not applicable on the fee.

For commercial properties outside Sydney, Melbourne, & Brisbane CBD, please contact the
Business Development Manager to obtain a commercial valuation quote

Where residential security is to be provided as additional security, valuation costs in this
regard remain the same as with a standard ING DIRECT Home or Investment Loan
application. This can be summarised as:

The first residential property valuation (up to an estimated market value of $1m) is free;
The valuation cost of a residential properties with an estimated market value of between $2m
and $3m is $350 + GST (of which ING DIRECT pays $200);
Second and subsequent Sydney metro residential valuations will cost $200 each (inclusive of
GST)

Panel Valuers
Sydney: Kohler Bird Appraisals (02) 9890 7977
Melbourne: Herron Todd White (03) 9642 2000 or Opteon Valuers 1300 733 693
Brisbane: Chesterton International (07) 3222 3026 or Opteon Valuers 1300 733 693
Canberra: Opteon Valuers 1300 733 693
South Australia: Opteon Valuers 1300 733 693
Western Australia: Opteon Valuers 1300 733 693
Tasmania: Opteon Valuers 1300 733 693




                                      Stamp Duty Refinance Exemptions



                                                              Page 48
                             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                  PRIORITY COMMERCIAL APPLICATION OVERVIEW

A borrower may be eligible for a full or partial stamp duty exemption on re-finance providing it meets all of the following
criteria:


   Same borrower
   Same property
   Same or different lender

        st
From 1 August 2005 the mortgage re-finance exemption will be capped at $1million.
The new concession will apply to the amount of the lower of:
a) the earlier loan; or
b) $1million
Stamp Duty (currently at 0.4%) will be payable on the amount of any excess.


This is significant for re-finances in excess of $1 million and it may make it less attractive for borrowers to switch lenders
as the borrower will need to bear the additional stamp duty over $1million.


A borrower would not be eligible to apply for an exemption where for example:


   The borrower under the new loan was Mr and Mrs X but the borrower under the existing loan being re-financed was
    Mr X only.


   Similarly, exemption would not be able to apply if the security offered for the new loan was 2 High Street, but the
    security for the loan being re-financed was 2 New Street even if the borrower in both loans was Mr X.


The exemption applies up to the value of the loan being re-financed. If the new loan is greater than the one being
financed stamp duty is payable on the difference only.


Documents Required for Re-finance Exemption


Assuming the re-finance is eligible the following are required to lodge an application for exemption:


   A copy of the prime stamped, mortgage being discharged
   The original discharge for the loan being refinanced
   A copy of the previous loan offer showing the borrower
   A statutory declaration, generally this can be made by us or the borrower.


If all of the above documents are not available, it is not possible to lodge a re-finance exemption application.


When can I apply for a Re-finance Exemption?




                                                              Page 49
                             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

It is not possible to apply for a re-finance exemption before the existing loan being discharged is re-financed as the stamp
office requires the original discharge of the existing loan and this will only be available at settlement when the existing
loan is paid out.


For this reason it is recommended that even if it likely a borrower will qualify for refinance exemption, full stamp duty on
the mortgage is collected at settlement of the refinance. If the application for the refinance is successful the stamp duty
can be refunded to the borrower.


What If stamp duty is not collected at settlement?


If stamp duty is not collected at settlement and it is later found the re-finance is ineligible, full duty would need to be
collected. After settlement a borrower may be reluctant or delay payment. Until the mortgage is stamped either for full
duty or exempt, it is not possible to register the mortgage. For this reason, it is strongly recommended that stamp duty is
collected for re-finances and subsequently refunded to the borrower, if the stamp approves the exemption application.


Additional Advances of not more than $10,000


From 1 August, stamp duty is not payable on advances secured by a mortgage if the total additional advance does not
exceed $10,000 in any 12 month period, not being the period of 12 months following the initial advance. While this
concession is minor it may assist in some further advances.




     Priority Commercial Mortgage
       Application Summary & Checklist
                                                              Page 50
                                           ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

      Please fax together with completed application to 1800 352 922
      Postal Address: GPO Box 4094 Sydney 2001 – Attention: Priority Commercial Mortgages

NAME OF BORROWER:                                                                      DATE:

BROKER NAME/COMPANY:                                                                   INTRODUCER No:

E-MAIL ADDRESS:                                              BUSINESS DEVELOPMENT MANAGER:

CHECKLIST

                                                                                                All Applications (Continued)
                                                                                                           Letter/statement from Real Estate Agent confirming
All Applicants                                                                                             proposed/existing rental income or lease agreement
              Fully completed Loan Application Form                                                        Description of property eg: warehouse, office, factory
              Applicants/ Guarantors Identification Form         (Include copies of                        Statutory Declaration stating that funds being gifted
identification)                                                                                            are not repayable (if applicable)
              0.25% Commitment Fee + Valuation Fee                                                         Rates Notice for all properties owned
              Have you advised your client the 0.25% Commitment Fee becomes non-                           Copy of recent statement for all loans held
              refundable upon issuance of the formal Letter of Offer?
              Serviceability calculation print out (mandatory)
          Company & Trust Appendix

PAYG Applications / Guarantors                                                                  Trusts
            Last 2 years full Personal Taxation Returns (mandatory)                                        Trust Deed PLUS
            Latest ATO Assessment Notice (if available)                                                    Last 2 years full Trustee Taxation Returns (mandatory)
                                                                                                        Company & Trust Appendix

Self Employed Application                                                                       Refinance Applications
             Last 2 years full Business/Company Taxation Returns           and Financials                  Last 6 months statements of loans being refinanced
(Notes inclusive) PLUS                                                                                     Last 6 months statements of trading account, (if interest from loan account is
             Last 2 years full Personal Taxation Returns                                                   offset to trading account)
             Latest ATO Assessment Notice                                                                  Signed Discharge Authority (fax & post original to ING DIRECT’s solicitor
             BAS Statements (if applicable)                                                                following formal approval)
             Memorandum & Articles of Association (by settlement)                                          Land Tax Certificate (also applicable for increases to existing commercial loans
                                                                                                           – by settlement)
                                                                                                           Zoning Certification (by settlement)

Introducer’s acknowledgment that required supporting documentation is attached to the completed application

_________________________________________________                                      Date_________________________




                                                                                            Page 51
                                     ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                          PRIORITY COMMERCIAL APPLICATION OVERVIEW



Security Property Details (To be completed in full)
(Please refer to PCM Credit Policy Section 24 “Specialised Security Property”)

Description:
Property (1) Address & Description


Property (2) Address & Description




Site Area, Lettable Area :
Property (1)

Property (2)

Lease Agreements / Tenancy Schedules:
Tenant:
Term:
Start Date:
Expiry Date:
Option Period:
Reviews:
Outgoings:
Initial Annual Rent:
Current Annual Rent:
Current/Permitted Use:


Please ensure you include the following points in your notes covering the Borrower:- Industry (including risks, trends, payment terms), experience and if an
existing ING DIRECT Customer




                                                                          Page 52
ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
     PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                 Page 53
                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW

Priority Commercial Mortgages
Pre-settlement Legal Requirements
Documents provided        Commercial Term Loan Facility Letter of Offer (+ copy)
by solicitor              Mortgage
                          Memorandum 8303572
                          Directions to pay
                          Undertaking
                          Direct Debit Request Form
                          Loan Account Instructions Form
                          Warranty
                          Bank Solicitors Fee (payable by client)
                          List of APRA approved Insurers

Documents required        Letter of Offer duly signed or initialled
for completion            The Mortgage duly executed and stamped to secure a total loan of
                          $xxxxxxx. Please ensure that the mortgage is stamped prior to
All of the above          return
documents and             Direction to Pay duly executed
requirements need to      Undertaking duly executed
be met at least 3         Direct Debit Request Form completed and signed
business days prior to    Loan Account Instructions Form completed and signed
settlement. Cheque        Warranty duly executed
direction is to be        Bank cheque in payment of our account
received by the           A certificate of currency issued by the insurer and not a broker or
solicitor no later than   an original building insurance policy for $xxxxxx on a replacement
10am on the morning       basis noting ING Bank (Australia) Limited of 140 Sussex Street,
before settlement.        Sydney NSW 2000 as Mortgagee. The insurance must be effected
                          with one of the approved insurers
                          Survey Certificate by exception only. ING DIRECT will advise
                          specifically where a survey certificate is required, in all other
                          instances provision of Survey Certificate is not required. Where a
                          Survey Certificate is required it must: -
                          (i) Identify the land by reference to its present title particulars,
                          (ii) Identify any building erected on the land by street number or
                          name and
                          (iii) Certify that there are no encroachments by or upon the
                          property and that the Local Government Regulations and/or
                          Environmental Planning and Assessment Act Regulations have
                          been complied with as to the distance of walls, eaves and gutters
                          from boundaries.
                          Zoning Certificate, not more than 2 years old and to confirm current
                          zoning as listed in the valuation report.
                          Land Tax Certificate (for refinance and increase requests only).
Special Conditions /      Cheque in favour of the Land & Property Information NSW in the
Requirements              sum of $xxx in payment of registration fees
                          Existing ABC Bank loan number 12344556 is to be repaid in full
                          and closed at settlement. YOU WILL NEED TO ARRANGE FOR
                          THIS.
                          Discharge of Mortgage no 123445 from ABC Bank will be required
                          at settlement. YOU WILL NEED TO ARRANGE FOR THIS.
                          Copy of lease number 12344556.
                          Copy of variation of lease number 12344556.
                          Copy of any other lease/s in place for the properties.


                                                 Page 54
                                              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                                     PRIORITY COMMERCIAL APPLICATION OVERVIEW


                     PCM Application Process

                                                                                                  FAX                                                          PAPER
                                                                                       Application is received via:                                  Application is received via:
                                                                                      1800 352 922 (Level 12)                                      Postal Address
                                                                                                                                                    Courier
                                                                                                                                                    Walk in at Level 6 (Sussex St)



                   If application is for an                                   PCM Application is loaded on to the                            Courtesy call/SMS made to
                   existing client,                                                    team register:                                        the broker to confirm
                   existing file must be                                       Groups/Retail/S&D/Commercial/                                 receipt of app
                   requested via e-mail                                        MIS/Commercial Register “Year”
                   to:
                   AU-ID File Request



                                                     Application is reviewed by credit assessor to determine if sufficient information
                                                    has been provided to allow application to be assessed and if application meets
                                                                                 our underwriting criteria



                                                                                     Application is loaded into LPI and
                         Credit Assessor will fax                                     designated an account number.
                     “Additional information” request                                  SLA = 2 – 3 hrs from receipt
                          to broker. This is then
                     highlighted (yellow) in the team
                       register and loaded into LPI
                                                                                                                                        Outside                Application is declined and
                                                                                                                                        Policy                  notification is sent to the
                                                                                  Update team register with account                                             broker. UPDATE QUICK
                    PFI is followed up weekly by TA                                number and data entry details                                                 DECLINE REGISTER



                    Once additional information is                             Compile Application Folder and ensure
                    received it is then resubmitted                                         folder has:
                    to Credit Assessor to be                                      Application Details summary
                    assessed                                                      Labelled correctly
                                                                                  CRAA searches




                                                                        Additional                                    Sufficient
                                                                        Info                                          Info




                                                                                                                             Application is then
                                                                                                                          submitted to Credit for full
                                                                                                                                Assessment
                                                                                                                          (SLA 2-3 business days)
                      Refer to credit assessment
                   procedures and credit decision to
                               be made


                          Request                Indicative Approval                       Indicative is followed
   Declined               further                Indicative Approval                       up weekly by TA                                          Once additional information is
Declined in LPI,          Additional              is sent/SMS to the                                                                                received it is then
broker notified           Information               broker, outlining                                                                               resubmitted to Credit
 and file stored          Requested                conditions of the                                                                                Assessor to be assessed.
 for 6 months             from the              loan and request for
                          broker                          fees




                                                                                      Valuation & Commitment Fee
           Process Fees in the receipt book:
                                                                                        received and processed
            Yellow Copy – to be kept in file
         Blue Copy – to be left in receipt book
      White Copy – to be attached to payment and
                given to L4 to process
                   Update Register
                                                                               Order valuation in LPI. Refer to
                                                                               Panel Valuer for each state.
                                                                               However generally in:
                                                                                   NSW (Kohler Bird)                                         Track valuation reports and
                                                                                   VIC (PRP)                                              updates from valuers in the AU-ID
                                                                                   Opteon Valuers (National)                              RMG Commercial inbox folder to
                                                                               Agreed SLA w/ valuer = 5 days                                      ensure SLA is met.
                                                                               Update register
                                                                                              Page 55
                                        ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                              PRIORITY COMMERCIAL APPLICATION OVERVIEW

                 Continuation…

                                                                    Order valuation in LPI. Refer to
                                                                     Panel Valuer for each state.             Track valuation reports from
                                                                        However generally in:                valuers in the register to ensure
                                                                    NSW (Kohler Bird)                                  SLA is met.
                                                                    VIC (PRP)
                                                                    Opteon Valuers (National)
                                                                    Agreed SLA w/ valuer = 5 days
                                                                        UPDATE REGISTER

                                                                                                               Valuation is followed up on
                                                                                                                    th
                   Refer to credit risk assessment                Once valuation report is received,           the 4 business day by TA
                    procedures when assessing                      forward to Credit Assessor with
                           valuation report                           Expose to assess report.
                                                                         Credit Assessor to
                                                                        UPDATE REGISTER




                                                                 LOO is generated and then
                                                                 submitted to Credit Assessor for
         Unacceptable            Acceptable                      approval. LOO templates is located
             Security            Security                        under:
        Broker to advise                                           Groups/Retail/S&D/Commercial/
        how client wants         If valuation report
                                                                     Commercial Templates/LOO
           to proceed            meets our
                                                                    Templates (1) “Type of Loan”.
                                 requirements,
                                                                    However, residential LOO are
                                 Credit Assessor
                                                                          system generated
                                 updates and
                                 approves
                                 application and
                                 loan is QA in LPI.                                                                   PDF copy of LOO and
                                                                 Once LOO has been signed off,
                                                                                                                      courtesy email sent to
                                                                 package documents:
                                                                                                                        broker for review.
                                                                 Print out LOO
                                                                      Valuation Report
                                                                      Guarantor Pack (1 x copy per
                                                                       guarantor)
                                                                      Solicitors Instructions



                                                                   Instruct Solicitors in LPI. Refer to
   If ING DIRECT hold existing                                      solicitor for each state. However
security, a security packet will need             Existing                       generally:
            to be ordered                         Security          NSW – Hicksons
                                                                    Other states – Gadens
                                                                           UPDATE REGISTER




                                                                    Documents are then packaged
                                                                   and sent to level 6 to be sent to
                                                                   solicitors. LPI is then updated to
                                                                   reflect that solicitors have been
                                                                                instructed.




                                                                           Page 56
            ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

              Gadens Commercial Settlement Procedures.

PURCHASE DEAL - Please provide the following:


     Enquiry Certificates
     The following certificates should be not be more than three months old before
     settlement.
          Land Information Certificate
          Planning Certificate
          Land Tax Certificate
          Vic Roads Certificate
          Relevant Water Rates Certificates
          Relevant Water Encumbrance Certificate
     The enquiry certificates are required for Commercial deals only not Residential


     Insurance
          A certificate of currency must be supplied and issued by the insurance company/broker (as
           long as it is underwritten by an approved insurer – see list below).
          The policy must be current for at least 3 months
          The policy must be in the name MORTGAGOR as owner.
          "ING Bank (Australia) Limited" must be noted as mortgagee.
          The property must be insured for no less than the recommended insurance amount noted
           on the lender‟s valuation for Commercial Deals only. No need for a replacement amount
           for Residential Deals


          The insurance company must be one of the approved insurers on the list
           ACE Insurance Limited
           Allianz Australia Insurance Limited
           American Home Assurance Company
           Ansvar Insurance Limited
           Australian Alliance Insurance Company Limited(Also known as Australian Pensioners
           Insurance Agency)
           Australian Associated Motor Insurers Limited (AAMI)
           Auto and General Insurance Company Limited (Budget Direct)




                                             Page 57
      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
            PRIORITY COMMERCIAL APPLICATION OVERVIEW

     Calliden Insurance Limited
     Catholic Church Insurances Limited
     CGU Insurance Limited
     CGU-VACC Insurance Limited
     Chubb Insurance Company of Australia Limited
     CIC Allianz Insurance Limited
     Commonwealth Insurance Limited
     Cumis Insurance Society, Inc
     Defence Service Homes Insurance
     Elders Insurance Limited
     GIO General Limited
     Guild Insurance Limited
     Hallmark General Insurance Company Ltd
     Hollard Insurance Company
     HBF Insurance Pty Ltd
     ING General Insurance Pty Limited
     Insurance Australia Limited this includes all the insurers in the Insurance Australia
     Group viz:- NRMA Insurance, SGIO, SGIC, CGU, NZI & RACV (See alpha listings)
     Liberty Mutual Insurance Company
     Lloyds of London
     Mutual Community General Insurance Pty Ltd
     NRMA Insurance
     NZI Insurance Australia Limited
     QBE Insurance (Australia) Limited
     RAA Insurance Limited
     RAC Insurance Proprietary Limited
     RACQ Insurance Limited
     RACT Insurance Pty Ltd
     RACV Insurance Proprietary Limited
     Real Insurance (The Hollard Insurance Company)
     SGIC
     SGIO
     Suncorp Metway Insurance Limited
     TIO (Territory Insurance Office)
     Vero Insurance Limited
     Wesfarmers Federation Insurance Limited
     Westpac General Insurance Limited
     Zurich Australian Insurance Limited


Purchase Contract



                                       Page 58
        ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
              PRIORITY COMMERCIAL APPLICATION OVERVIEW

If this is a purchase then we require a full copy of the signed Contract of Sale (including
special conditions)


Transfers of Land
If this is a purchase then we require a copy of the proposed transfer of land.


PLEASE NOTE if the parties are purchasing as tenants in common, that is not in equal
shares, we will need to receive further instructions from our client. This is because
loans are often approved on the basis that joint owners will hold the property in equal
shares. If this is not the case further approval may be required to be obtained.


There may also be stamp duty implications under the State Revenue Office's fractional
interest policy.


If the consideration in the transfer is by way of natural love and affection, gift or other
similar consideration then we will require it to be stamped prior to settlement.


Powers of Attorney
If any party is signing under a power of attorney including the Vendor, then we will need
 a copy. At settlement you will need to ensure we receive a certified copy.


New Instruments (Enduring Power of Attorney) Act 2003 effective 1 April 2004


Please be aware that enduring powers of attorney signed from 1 April 2004 must
comply with the new legislation. Please note in particular section 125B(b) states that
the attorney must sign and date a Statement of Acceptance including a statement “to
avoid acting where there is any conflict of interest between the interests of the donor
and the attorney‟s interest”..


We take this to mean that where an attorney is a co-mortgagor or co-transferor that in
addition we will require the following:


1.   Letter from the Donor or their solicitor addressed to the Land Titles Office
     confirming that he/she is aware of and consents to the transaction; OR


2.   Evidence we can submit to the Land Titles Office establishing that the transaction
     is in the interests of the Donor.


Guarantors are not permitted to sign by way of power of attorney.




                                          Page 59
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW

      First Home Owners Grant (FHOG)
      Please confirm whether this will be applicable. In most cases the application would
      have been made direct with our client and the funds should be available at settlement.


      If the application for the FHOG is being applied for independently of our client it will not
      be available at settlement. You will be able to apply for the grant after settlement on the
      production of a copy of the stamped transfer of land to the State Revenue Office. We
      are able to provide you with a dealing number of the transfer after settlement if
      requested or alternatively order and provide a copy for a fee of $55 (inc GST).


      Tenancies
      If the property is tenanted a copy of the executed lease.


      Trusts
      Where any party is a Trustee we require a certified copy of each trust deed




SETTLEMENT GUIDELINES


Please note carefully to ensure a smooth transition to settlement.


At least three (3) clear working days prior to settlement we will require ( eg for a Friday
settlement no later than Tuesday prior):


      Return of the signed loan documentation and ancillary documents by 2.00 pm 3
      days before settlement.


      A breakdown of the cheques to be disbursed. Cheque requests must be in writing.
      We must have cheque details by no later than 12.00 pm 1 days before settlement. We
      cannot guarantee settlement if received outside these guidelines and will need to obtain
      instructions from our client. If faxing details close to the deadline please call our office to
      ensure the fax is received.


      The date, time and place for settlement. PLEASE NOTE settlement must not be
      arranged before 12.30 pm. If settlement is to take place outside the central business
      district we may require to appoint an agent. If so there will be additional agency costs to
      your client.




                                                Page 60
             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

      Remember if there are 2 or more properties involved you must ensure all settlements
      take place simultaneously.


      A certificate of currency of insurance noting the particulars in the checklist above.


      Confirmation that any of the above special conditions in Part 2 have been satisfied or
      that cheques to be disbursed will ensure they are satisfied at settlement


      Any other outstanding requirements noted in our checklist.


      Please note if settlement is outside the Melbourne CBD and we are required to use
      agents then an agency fee may be applicable. The agent's fee will be advised at time of
      booking settlement.


      If the Transfer of Land has a consideration of over 1 million dollars and any party
      is a company, we require a certified copy of a company search not over 14 days old for
      the Land Titles Office


      Copy of the Vendors Chattels statutory declaration and if applicable a copy of the
      Land Building statutory declaration or Refurbishment statutory declaration. We
      want to ensure the correct duty has been allowed.


      Copy of the Nomination statutory declaration and supporting evidence if applicable.


      Settlement Re-booking Fee


      If settlement is cancelled and has to be re-booked for another day, a settlement re-
      booking fee of $33.00 may be charged.


REFINANCE DEAL - Please provide the following:


The notices are required for Commercial deals only not Residential


      Evidence of payment of rates and land tax
      We need to be satisfied that there are no arrears. Please provide a copy of your last
      council rate notice evidencing payment. If your property is subject to land tax we also
      require evidence of payment.




                                              Page 61
      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
            PRIORITY COMMERCIAL APPLICATION OVERVIEW

Insurance
    A certificate of currency must be supplied and issued by the insurance company/broker (as
     long as it is underwritten by an approved insurer – see list below).
    The policy must be current for at least 3 months
    The policy must be in the name MORTGAGOR as owner.
    "ING Bank (Australia) Limited" must be noted as mortgagee.
    The property must be insured for no less than the recommended insurance amount noted
     on the lender‟s valuation for Commercial Deals only. No need for a replacement amount
     for Residential Deals


    The insurance company must be one of the approved insurers on the list
     ACE Insurance Limited
     Allianz Australia Insurance Limited
     American Home Assurance Company
     Ansvar Insurance Limited
     Australian Alliance Insurance Company Limited(Also known as Australian Pensioners
     Insurance Agency)
     Australian Associated Motor Insurers Limited (AAMI)
     Auto and General Insurance Company Limited (Budget Direct)
     Calliden Insurance Limited
     Catholic Church Insurances Limited
     CGU Insurance Limited
     CGU-VACC Insurance Limited
     Chubb Insurance Company of Australia Limited
     CIC Allianz Insurance Limited
     Commonwealth Insurance Limited
     Cumis Insurance Society, Inc
     Defence Service Homes Insurance
     Elders Insurance Limited
     GIO General Limited
     Guild Insurance Limited
     Hallmark General Insurance Company Ltd
     Hollard Insurance Company
     HBF Insurance Pty Ltd
     ING General Insurance Pty Limited
     Insurance Australia Limited this includes all the insurers in the Insurance Australia
     Group viz:- NRMA Insurance, SGIO, SGIC, CGU, NZI & RACV (See alpha listings)
     Liberty Mutual Insurance Company
     Lloyds of London




                                       Page 62
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW

             Mutual Community General Insurance Pty Ltd
             NRMA Insurance
             NZI Insurance Australia Limited
             QBE Insurance (Australia) Limited
             RAA Insurance Limited
             RAC Insurance Proprietary Limited
             RACQ Insurance Limited
             RACT Insurance Pty Ltd
             RACV Insurance Proprietary Limited
             Real Insurance (The Hollard Insurance Company)
             SGIC
             SGIO
             Suncorp Metway Insurance Limited
             TIO (Territory Insurance Office)
             Vero Insurance Limited
             Wesfarmers Federation Insurance Limited
             Westpac General Insurance Limited
             Zurich Australian Insurance Limited


      Transfer of Land (if applicable)
We require a copy of the proposed transfer of land.


If the consideration in the transfer is by way of natural love and affection, gift or other similar
consideration then we will require it to be stamped prior to settlement.


      Powers of Attorney
      If any party is signing under a power of attorney including the Vendor, then we will need
        a copy. At settlement you will need to ensure we receive a certified copy.


      New Instruments (Enduring Power of Attorney) Act 2003 effective 1 April 2004


      Please be aware that enduring powers of attorney signed from 1 April 2004 must
      comply with the new legislation. Please note in particular section 125B(b) states that
      the attorney must sign and date a Statement of Acceptance including a statement “to
      avoid acting where there is any conflict of interest between the interests of the donor
      and the attorney‟s interest”..


      We take this to mean that where an attorney is a co-mortgagor or co-transferor that in
      addition we will require the following:




                                                Page 63
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW

      1.   Letter from the Donor or their solicitor addressed to the Land Titles Office
           confirming that he/she is aware of and consents to the transaction; OR


      2.   Evidence we can submit to the Land Titles Office establishing that the transaction
           is in the interests of the Donor.


      Guarantors are not permitted to sign by way of power of attorney.


      Tenancies
      If the property is tenanted a copy of the executed lease.


      Trusts
      Where any party is a Trustee we require a certified copy of each trust deed




SETTLEMENT GUIDELINES


Please note carefully to ensure a smooth transition to settlement.


At least three (3) clear working days prior to settlement we will require ( eg for a Friday
settlement no later than Tuesday prior):


      Return of the signed loan documentation and ancillary documents by 2.00 pm 3
      days before settlement.


      A breakdown of the cheques to be disbursed. Cheque requests must be in writing.
      We must have cheque details by no later than 12.00 pm 1 days before settlement. We
      cannot guarantee settlement if received outside these guidelines and will need to obtain
      instructions from our client. If faxing details close to the deadline please call our office to
      ensure the fax is received.


      The date, time and place for settlement. PLEASE NOTE settlement must not be
      arranged before 12.30 pm. If settlement is to take place outside the central business
      district we may require to appoint an agent. If so there will be additional agency costs to
      your client.


      Remember if there are 2 or more properties involved you must ensure all settlements
      take place simultaneously.




                                                Page 64
              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

      A certificate of currency of insurance noting the particulars in the checklist above.


      Confirmation that any of the above special conditions in Part 2 have been satisfied or
      that cheques to be disbursed will ensure they are satisfied at settlement


      Any other outstanding requirements noted in our checklist.


      Please note if settlement is outside the Melbourne CBD and we are required to use
      agents then an agency fee may be applicable. The agent's fee will be advised at time of
      booking settlement.


      Settlement Re-booking Fee


      If settlement is cancelled and has to be re-booked for another day, a settlement re-
      booking fee of $33.00 may be charged.


                                       FEES - ING DIRECT
Fees for Residential Deals:

                                                             nd, 3rd.
Legal Fees for Refinance/Purchase/Clear Title and 2                     Mortgages - $247.50 (GST
inclusive) - ING DIRECT is billed monthly


Refinance/Clear Title Files - Borrowers to pay
Documentation and Settlement Fees $137.50 (GST inclusive)


Purchase Files - Borrowers to pay
Documentation and Settlement Fees $137.50 (GST inclusive)


Extra Costs - Borrowers to pay
- Review Trust Deed $82.50 (GST inclusive) each Trust
- Review Company's M & A's (only if they are provided - not compulsory) $82.50 (GST
 inclusive) each company
- additional collateral security property $82.50 (GST inclusive) each ppty
- Individual Guarantee $82.50 (GST inclusive) regardless the number
- Company Guarantee $82.50 (GST inclusive) regardless the number
- Company Searches $33.00 (GST inclusive) each company search


Variation and Upstamp Files - Borrowers to pay
Legal Fees $165.00 (GST inclusive).




                                               Page 65
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW



Fees for Commercial Deals - Borrowers to pay:


Legal Fees are worked out .01% flat of the principal sum with a minimum of $600.00 (plus
GST) eg. if principal sum is $623,000.00 x .01% = Legal Fees $623.00 (plus $62.30 GST).
Please note Legal Fees are paid by the borrower (deducted from loan amount).


Account for Documentation and Settlement Fees - For a purchase and Clear Title deal
$110.00 (GST inclusive) and for a Refinance deal $165.00 (GST included).


For Company searches we charge $30.00 per company search.


Fees for Substitution files - Borrowers to pay


Legal Fees $242.00 (GST inclusive) for preparing the Discharge of Mortgage (Securities
Team Fee)
Legal Fees $247.50 (GST inclusive) for preparing the new mortgage.
(Need to allow for any government fees and Registration fees )
Disbursements $137.50 (GST inclusive)




         Hicksons Lawyers Commercial Settlement Procedures
                     ING DIRECT PROCEDURES AND REQUIREMENTS

TIMEFRAMES
 Receipt of instructions from bank at 12:00pm each day
   Open file (within 24 hours of receipt of instruction)
   Letter sent to borrowers solicitors requesting title particulars (i.e. Contract, title search)
    (within 24 hours of receipt of instructions)
   Where there is no solicitor or acting for self, title search ordered by is (within 24 hours of
    receipt of instruction)
   Upon receipt of title search prepare and issue mortgage documents as well as make
    contact with outgoing mortgagee for refinance matters (within 48 hours of receipt of title
    documents)
   Following receipt of all signed loan documents and requirements we can proceed to
    settlement with maximum 3 days notice.




                                                Page 66
                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                     PRIORITY COMMERCIAL APPLICATION OVERVIEW

   Upon booking of settlement we are required to certify to bank by 10:00am the day prior
    to settlement (Cheque details from borrower or borrowers solicitors are required by this
    time)
REQUIREMENTS
Refinance
   Council Zoning Certificate
   Land Tax
   Insurance
   Section 109 Certificate (for Strata Title property)


Purchase
   Council Zoning Certificate
   Insurance
   Section 109 Certificate (for Strata Title property)
   Settlement Statement
   Vendor‟s cheque directions
   Occupation Certificate (or newly built property)

Standard Loan Requirements

   Certified copy of Memorandum and Articles of Association (Required where company
    borrower or guarantor is involved)
   Certified copy of stamped Trust Deed (Required where trust borrower or guarantor
    involved)
   Copy of all leases in respect of security property
   Conditions Precedent as per loan offer




                                                 Page 67

				
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