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Unrealisable Assets - Security for Borrowing

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Last amended: 24 March 2006

Person expected to borrow

Before accessing the financial hardship rules, a person is expected to borrow against an asset if:

A person who owns substantial business assets and who is experiencing temporary hardship is expected to attempt to obtain a loan by offering their business assets as security.

Evidence to be provided of inability to borrow

Where a person undergoing temporary hardship is unable to borrow against their assets, written confirmation is to be provided to verify their claim. Confirmation can include letters from a person's:

  • accountant,
  • solicitor, or
  • financial institution manager.
Acceptable institutions

A person is only expected to borrow from:

  • banks, finance companies and similar institutions with whom they normally invest, or
  • any government body set up to assist those specific persons, such as the Rural Assistance Board.

A person is not expected to enter into a loan agreement with interest rates more than the prevailing rate charged by banks and similar institutions.