Banking & Finance

Banking and finance can be complicated and scary. When you’re dealing with life savings or making one of the biggest purchases in your life, for example, a new home, it makes sense to gain solid, legal advice. Banking and finance law focuses on the contractual relationship between the lender and the borrower. Before investing large sums of money, obtaining detailed advice from an experienced lawyer can alleviate any stressful financial pain and hardship later on. 

Mackinnon Jacobs Lawyers can represent either the borrower (usually an individual or company) or the lender (usually financial institutions or banks – but it can also be individuals or a private company).

We can help you with the following services:

• Loan Agreements
• Preparing mortgages
• Preparing guarantees
• Preparing documents in relation to provision of finance
• Providing security for repayment of that finance
• Consumer lending
• Non-consumer lending

Legally binding financial issues

With money exchanging hands, having an experienced lawyer in banking and finance issues ensures every step is scrutinised and beneficial to you. For example, if you loaned a person $100,000, how do you know they will pay it back on time and in good faith?

Making the repayment schedule legally binding gives you the security and peace of mind.

If property is involved, then any transaction will need to be lodged through the Property Exchange of Australia (PEXA). This process can only be completed by a subscriber to PEXA – which we are. PEXA is fast, efficient and its use for property transactions is compulsory in most Australian states. Our experienced lawyers deal with consumer lending and non-consumer lending.

What is Consumer Lending?

Consumer lending usually centres on borrowers who are an individual or couple (For example, mum and dad investors). Banks and financial institutions who lend to these type of people are governed by the National Credit Code.

Banks and institutions can’t just lend money to people. They need:

• A Credit Licence
• To document loans in a specific way
• To adopt certain Codes of Conduct, which must be followed

What is Non-Consumer Lending?

Non-consumer lending is when businesses and companies borrow money, for business or investment purposes, such as buying equipment or hiring staff.   

There are many non-bank lenders offering non-consumer lending to companies and business. 

Our team of professional lawyers can review and advise you in relation to any proposed loan to ensure you are not trapped by unscrupulous lenders and draconian contracts. We provide information of your legal rights and ensure a smooth transaction so you receive the best results.

If you are a lender, we can make sure your loan documentation facilitate repayment of loan funds in a timely manner, with proper security put in place.

Private Lending

When you’re lending money to a friend or family member, it is imperative to have this agreement legally verified as fully protecting your interests. Private lending isn’t covered under the National Credit Code and therefore, loan documentation can state just about anything. If not addressed legally, this can lead to various problems and issues, which only mediation and litigation can resolve, down the track. 

What if I’m the Guarantor?

If you have signed a guarantee on behalf of someone else who has borrowed money, if that person defaults or does not pay, then you, as the Guarantor could be sued.  In turn, you would have to go through the process of suing the person you guaranteed in order to receive your money back. This can be a long, complicated, process and it may not be possible to recover money from the original borrower. With our guidance and expertise, we help you navigate the system to obtain a faster resolution.

If would like our experienced lawyers to provide you with personal, tailored advice, contact us here.