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You're squirming again. Margin calls occur if the drop in value of a given share breaches the LVR. Market movements in other shares or indices don't result in a call. Equally, drops in median prices of a given suburb don't create a breach of the loan terms we have seen. However, a drop in...

You say a margin call in property can't occur, yet you continue to use an incorrect definiton of margin call in the equities space. You now use that incorrect understaning to redefine your assertion. I'm pointing out that a margin call, as occurs with loans against equities, only occurs when...

This getting genuinely amusing. You can't make a margin call on a margin loan simply because the market drops. You do so when the value of the specific security you hold against a given loan drops below a given LVR. So, margin call = value of borrower's actual security dropping, not...

There is no evidence that the ING/CBA clauses are illegal. In these very same clauses exist in every Line of Credit I have ever seen and LOCs are subject to the very same NCCP quote regularly but ignorantly on this thread. And given I have used that very clause in the last 12 months I can...

The Tand Cs are part of the contract. Seriously, if you don't think they are part of the contract, what exactly do you think they are? As expected your question is loaded. A fairly simple question would be: Does the NCCP preclude a contractual term requiring a borrower to reduce their...

Not willing to post the question you asked. Fair enough. Noted.

Indeed. But Shadow's argument is not that we wouldn't...it's that we can't because: (a) no such terms exist (b) or, if they exist, only in unregulated mortgages for some reason (c) or, if in mortgages other than unregulated mortgages, they are illegal. (d) or if not illegal, maybe...

Fault is irrelevant. Under the CBA and ING terms, if the value of your security drops to a point they are not comfortable, they have the right to have you tip in more cash or add more security. Inability to do this would lead to a default An unremedied default gives rise to a right of...

You're being willfully ignorant. The Ts and Cs are part of the contract as...you know.... the people who have to know this stuff for a living keep telling you. If you were keen to find something out as distinct from defend the obviously indefensible, it seems to we you would have sent...

Differnet lenders have different terms. What we have established is that CBA and ING have these terms in their contracts. As Aaron C alluded to earlier, the reason we build multi-part documents is for administraive efficiency. Rather than re-issuing contracts in their entirety when you...

This and the APF thread really are definitive of your issues Shad. You've gone from vehementy stating a fall in value would not constitute a default on the loan to now, it would appear, accepting it does exist but that it can't be enforced. So, before I move on, do you agree that lenders...

You are making it nigh on impossible for anyone to take you seriously anymore. You're wrong...you just to get over it and move on. The CBA Ts and Cs are part of the loan contract. It shouldn't be a surprise to anyone that if a bank lends on the basis of security being provided that is of a...

You clearly have no legal background nor an understanding of the difficulty involved in getting a court to set aside a bone fide contract on the grounds of unconscionability. A link has been provided. Tell you what. Let me provide you another one and then step you through it. Once done, feel...

You are making yourself look sillier than is necessary. Terms and Conditons form part of the contract. Our loan contracts for both resi and commercial are structured exactly that way. And it doesn't matter what you believe might be unenforceable under the NCCP. Your credibility and...

Fair comment SF. You would do it simply in order to prevent a larger loss and it really is about individual instances rather than a whole-of-portfolio risk management option We actually seen quite a few examples recently in circumstances where poorly advised borrowers in QLD who has disputed...

If there is a condition of the contract, and the borrower is in default of that condition, and the borrower is unable to correct the default, then the usual remedies are available to the lender. If we look at the CBA Terms and Conditions as an example, we have a very broad contractual term...

In terms of relying the contract, only on LOCs. Not called in but reduced credit limits (allowable under ours and most Ts and Cs) by a lot, including to $0. Have called in/required borrower to tip in funds on term loans as a result of becoming aware of LVR issues but did so leveraging other...

Crikey. You're overcomplicating this. A Bank can take possession/require full or partial repayment if loan is in default. Whether a loan is in default is determined by reference to the contract. Terms and Conditions (T's and Cs in the trade) form part of the contract. These...