Important changes for BOQ Business Banking customers

1.1

We will only allow you to use the facility (or any part of it) if the certain conditions are met.  We have amended some of these conditions.  The conditions now include the following:

• nothing has happened since you applied for the facility which would constitute a change of credit;
• we are satisfied that the representations and warranties in clause 3 of Part A are correct and not misleading at the date the facility is provided, or where there is any misrepresentation this would not constitute a change of credit.

2.4(b)

We have clarified that you may only use the facility if all representations, warranties and declarations made in the facility agreement remain correct and are not misleading in circumstances where any misrepresentation would constitute a change of credit.

5.4

If you are in default or you have not specified how an amount is to be applied, if we are obliged by law or the facility agreement to pay the money in a particular way, then we will do so.

We have added that we do not have to tell you first, however, we will provide you with details of how we have applied any such payments upon request from you.

10.2

We have clarified that your indemnity to us does not include any liability, loss or costs to the extent caused by our mistake, fraud, negligence or wilful misconduct or the mistake, fraud, negligence or wilful misconduct of our employees, officers, contractors or agents, or any receivers we appoint in respect of any property.

13.1(f)

We have added that it is an event of default under the facility agreement if it becomes unlawful for us to provide or continue to provide any facility, including under any Australian sanctions laws or international sanctions law.

15.13

We have clarified that if we reviewed the margin in accordance with clause 15.12 and you subsequently remedy the default to our satisfaction, we may, at our discretion, again review and decrease the margin or decrease or remove any new margin.

32.3

We have clarified that we can make a change to the facility agreement because of the requirements of any law, or if the change is necessary to facilitate moving you from a discontinued product to a current product where the features of that product are comparable to the discontinued product and no less favourable to you.

33.1

We have added that you may choose to terminate the facility agreement if we claim compensation under clause 33.1, and that we will not charge you any fees to discharge any security (but if the interest rate has been fixed then you must still pay any break costs in accordance with clause 11).

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If you are in default under the facility agreement and there is a security interest given to another person which is ranking in priority before our security on any security property, we may pay out that security interest and add the cost of doing that to the total amount owing.  We have clarified that we will only do this where reasonably necessary to protect our legitimate business interests.

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We have defined the ‘commercial rate loan base rate’ as the internal rate or rates we set daily for each facility type for each of the interest periods.  It includes a market rate component which is calculated according to a money market or some other external reference rate, or a rate otherwise designated as a variable or floating rate (e.g. BBSW).  If the market rate is not available or if, in our reasonable opinion, the market rate becomes inappropriate, the market rate will be the rate reasonably determined by us acting in good faith having regard to comparable indices then available to us.

If the market rate is less than zero, the market rate shall be deemed to be zero.

You can find out what this rate is for a particular day by contacting your branch.

Customers should note that BOQ will not apply this change to the definition of commercial rate loan base rate to any customer which has an interest rate hedging financial instrument in place with BOQ and which has not previously agreed to a zero rate floor.

9.5

We may adjust the interest period at any time without your consent.  We have clarified that we may only do this where reasonably necessary to protect our legitimate business interests or where such adjustment is not unfavourable to you.

11.9

We have clarified that we can end your rights to redraw under the facility if a change of credit occurs or where it is otherwise reasonably necessary to protect our legitimate business interests.  We have added that do not have to tell you first, however, we will tell you as soon as reasonably possible afterwards.