SMALL BUSINESS BANKING PLAN Terms and Conditions
1. INTRODUCTION 1.1 This document contains the terms and conditions of the agreement known as the Small Business Banking Plan ( Banking Plan or Plan ). 1.2 Unless the contrary intention appears, a term or phrase which is capitalised has the meaning given to it in clause 15 (Definitions). 1.3 Unless expressly stated, nothing in this agreement amends or modifies any loan contract You have with SERVICE ONE Members Banking (SOMB). 1.4 By signing the attached Application, You agree to be bound by these terms and conditions if the Application is accepted by SOMB. 2. ELIGIBILITY REQUIREMENTS 2.1 This agreement s commencement is conditional on You: (a) paying the Annual Plan Fee; (b) applying and having your application funded for a Business Loan or Business Overdraft of $10,000 or more; or (c) having a Business Loan or Business Overdraft of $10,000 or more; and (d) not being a party to another Banking Plan with SOMB. 3. ANNUAL PLAN FEE 3.1 You must pay the Annual Plan Fee. 3.2 The Annual Plan Fee will be debited to one of your Nominated Account(s) and is payable in advance on the Commencement Date and then on each Anniversary Date. 3.3 If there are insufficient available funds in your Nominated Account(s) to pay the Annual Plan Fee, or if your Nominated Account(s) is or are closed, SOMB can use any credit balance in any deposit account held in your name to pay the Annual Plan Fee. 4. CONCESSIONS 4.1 Subject to clause 4.2, and unless otherwise specified in this agreement, the Concessions available under clauses 5 to 11 (inclusive) will only apply during the Term. 4.2 The Concessions will not apply in conjunction with any other concessions or discounts or benefits given to You by SOMB. (For example, if You have a discounted interest rate loan or You have a negotiated Term Deposit interest rate You will not be entitled to a further interest rate concession in relation to that loan or Term Deposit under this agreement).
5. FEES 5.1 You will not be charged: (a) a Membership Service Fee; (b) fees for the first 20 Withdrawals made by You each month from your Nominated Account(s); or (c) Redraw Fees. 6. BUSINESS LOAN AND BUSINESS OVERDRAFT 6.1 You will be charged half the prevailing Business Loan or Business Overdraft application fee when, during the Term, you apply for and are funded a Business Loan or a Business Overdraft. 6.2 The interest rate that will be charged during the Term on a new or existing Business Loan or Business Overdraft will be the prevailing Business Loan Interest Rate or Business Overdraft Interest Rate from time to time less 0.25% per annum. 6.3 For existing Business Loans or Business Overdrafts, the discount specified in clause 6.2 above will apply from the next repayment date under the Business Loan or Business Overdraft after the Commencement Date, until the end of the Term. 7. PERSONAL LOAN 7.1 The interest rate charged during the Term on a new or existing Personal Loan for $10,000 or more will be the prevailing Personal Loan Interest Rate from time to time less 0.1% per annum. 7.2 For existing Personal Loans, the discount specified in clause 7.1 above will apply from the next repayment date under the Personal Loan after the Commencement Date, until the end of the Term. 8. STANDARD VARIABLE HOME LOAN 8.1 The interest rate that will be charged during the Term on a new or existing Standard Variable Home Loan, will be the prevailing Standard Variable Interest Rate from time to time, less: (a) 0.05% per annum if the Total Amount Owed is between $150,000 and $250,000 (inclusive); (b) 0.1% per annum if the Total Amount Owed is more than $250,000 but not more than $500,000; and (c) 0.15% per annum if the Total Amount Owed is more than $500,000.
8.2 The Total Amount Owed by You and the level of the interest rate concession under clause 8.1 will be calculated on: (a) where the loan is a new loan, the day that any part of the loan is funded to You and then on the 1st day of each subsequent calendar month; or (b) where the loan is an existing loan, at the Commencement Date and then on the 1st day of each subsequent calendar month. 8.3 To avoid doubt, the discounted interest rates referred to in clause 8.1 applies in relation to the Standard Variable Home Loan and not other borrowings, such as, for example, loans for investment purposes. 9. FIXED INTEREST RATE HOME LOAN 9.1 The interest rate charged during the Term on a new Fixed Interest Rate Home Loan will be SOMB s prevailing interest rate from time to time for Fixed Interest Rate Home Loan for the fixed interest period of your loan, less 0.1% per annum, and after the fixed interest period, the interest that will be charged will be in accordance with the discounts and Concessions in clause 8.1. 9.2 To avoid doubt, the discounted interest rates referred to in clause 9.1 applies in relation to the Fixed Interest Rate Home Loan and not to other borrowings, such as, for example, loans for investment purposes. 10. LOAN REPAYMENT HOLIDAY 10.1 Subject to clause 10.3, You can, by giving 1 month s prior Notice to SOMB, have a Loan Repayment Holiday once in the term of the following loans: (a) a Standard Variable Home Loan; (b) a Fixed Interest Rate Home Loan; or (c) a Personal Loan. 10.2 The suspension of repayment under clause 10.1 will not relieve You of any other obligation under the loan contract. 10.3 The Loan Repayment Holiday will only be available to You: (a) if it would not: (i) put the loan over the LVR Limit; (ii) extend the term of your home loan to more than 30 years; (iii) extend the term of your secured Personal Loan to more than 96 months; or (iv) extend the term of your unsecured Personal Loan to more than 60 months;
(b) where any guarantor of your obligations under the loan consents in writing; (c) where any mortgage insurer of your obligations under the loan consents in writing; and (d) if You have not defaulted in the performance of any obligation to SOMB under the loan contract or any loan contract You have with SOMB. 10.4 SOMB may have its valuers conduct a valuation of your property for the purposes of clause 10.3(a)(i), and You must pay the costs of the valuation. 11. OTHER BENEFITS 11.1 Any Term Deposits made by You with SOMB during the Term will, during the Term, receive SOMB s prevailing Term Deposit interest rate from time to time plus 0.1% per annum. 11.2 The premium payable by You for an Eligible CGU Insurance Product is the base premium as assessed by CGU Insurance Ltd less 10% of that base premium. 11.3 CGU Insurance Ltd will provide free of charge, one review of your small business insurance needs (to be arranged through SOMB). 11.4 The fee You pay for a Travelex Product is the fee as assessed by Travelex Ltd for that product less 10% of the commission. 11.5 Bridges Financial Services will provide free of charge: (a) one review of your financial planning requirements (to be arranged through SOMB); (b) one review of your life insurance needs (to be arranged through SOMB); and (c) one copy of each issue of the Quarterly Economic Update. 11.6 You will be entitled to one review of your entitlements under this agreement with your Relationship Manager each calendar year if the Total Amount Owed by You to SOMB is $100,000 or more. 11.7 The review specified in clause 11.6 is non-cumulative. 12. VARIATION 12.1 SOMB may unilaterally vary: (a) the Annual Plan Fee; (b) the eligibility requirements in clause 2; (c) the type of Concession available under the Plan (including, but not limited to removing a Concession or introducing a new Concession); (d) the amount or frequency of a Concession; and/or (e) the method of calculating a Concession.
12.2 If any of these variations increases or varies your obligations, We must give You Notice at least 20 days before the variation takes effect. 12.3 If a variation reduces your obligations, You will be notified in your next statement of account. 13. TERMINATION 13.1 This agreement and the Concessions will end immediately without notice if You: (a) fail to pay the Annual Plan Fee; (b) cease to be a member of SOMB; or (c) breach the terms of any loan contract You have with SOMB. 13.3 Either of us can end the agreement on an Anniversary Date by giving the other party prior Notice. 13.4 Where this agreement ends, You will receive 20 days prior Notice of the new or increased interest rate that will apply to your affected loans with SOMB or the new fees or charges that will apply. 14. MISCELLANEOUS 14.1 You should also read the following SOMB publications which contain information which is relevant to this agreement, but does not form part of this agreement: (a) Operation of Accounts General Descriptive Information, which contains useful information on a range of SOMB matters; (b) Schedule of Fees and Charges, which contains information on the prevailing standard fees and charges of SOMB; and (c) Schedule of Interest Rates containing information on SOMB s prevailing interest rates. 14.2 You may obtain copies of the publications in clause 14.1 by telephoning us on 1300 361 761 (between 8am and 5.30pm Canberra time Monday to Friday and between 9am and 12pm Canberra time on Saturday), by fax request on (02) 6215 7171, from any SOMB branch or from our website: www.somb.com.au. 14.3 If You need to change your Nominated Account(s), call into any branch of SOMB or call us on 1300 361 761 (between 8am and 5.30pm Canberra time Monday to Friday and 9am and 12pm Canberra time on Saturday) or send us a fax request on (02) 6215 7171. 14.4 This agreement will not alter or affect how SOMB assesses any loan application by You or what lending criteria it applies to such a loan application. 14.5 If any part of the Plan or a Concession available under it, varies an existing loan contract You have with SOMB, the variation will only take effect after You are given 20 days prior Notice of it.
14.6 SOMB is not responsible for, and does not endorse, warrant or guarantee, the quality, accuracy or reliability of any Eligible CGU Insurance Product or service, Travelex Product, Entertainment Book, Bridges Financial Services product or service or information published in the Quarterly Economic Update. 15. DEFINITIONS In this agreement: Application means the document titled Request to Take Up a Banking Plan completed and signed by You. Anniversary Date means each date which is the anniversary of the Commencement Date. Annual Plan Fee means $100 (inclusive of GST). Bridges Financial Services means Bridges Financial Services Pty Ltd (ABN 60 003 474 977; AFS Licence No 240837). Business Loan means a SOMB loan product identified by that name, and which is not for individual or other personal use. Business Loan Interest Rate means the prevailing interest rate charged by SOMB for loans similar to Business Loans. Business Overdraft means a SOMB line of credit identified by that name and which is not for individual or other personal use. Business Overdraft Interest Rate means the prevailing interest rate charged by SOMB for loans similar to Business Overdrafts. Commencement Date means the date of the letter from SOMB advising You that your Application is accepted. Concessions means a benefit or reduction under clauses 5 to 11 (inclusive) of this agreement. Eligible CGU Insurance Product means any small business package offered by CGU Insurance Ltd (ABN 27 004 478 371; AFS Licence No 238291) purchased by You during the Term through SOMB. Fixed Interest Rate Home Loan means a SOMB mortgage loan with an interest rate which is fixed for a period of an initial period of either 36 or 60 months. Loan Repayment Holiday means repayments under the loan contract are suspended for up to 4 months.
LVR Limit means the limit on the ratio between the amount of the loan and the value of the security property. The ratio is calculated by dividing the loan by the value of your security property at the time You apply for a Loan Repayment Holiday, and cannot be more than 0.8. Membership Service Fee means the fee charged in relation to each SOMB membership. The basis of its calculation is stated in SOMB s Schedule of Fees and Charges. Nominated Account means a SOMB transaction account and/or a Visa account(s) that You designate to be the Nominated Account or Nominated Accounts for the purposes of this agreement. Notice means a written notice. Personal Loan means a SOMB loan for individual or other personal use and not for a business purpose. Personal Loan Interest Rate means the prevailing interest rate charged by SOMB for loans similar to Personal Loans. Quarterly Economic Update is a publication by Bridges Financial Services. Redraw is a loan facility that enables a borrower to withdraw funds from eligible loan accounts if the borrower has accrued funds in that account by making repayments in excess of the minimum monthly repayment. Redraw Fees means the fees that SOMB charges for withdrawing funds from an eligible loan account. The prevailing fee is contained in the most recent version of the Schedule of Fees and Charges. Relationship Manager means SOMB staff member who will be available to You during normal business hours for consultation and about your Banking Plan or other banking requirements. Standard Variable Home Loan is a SOMB mortgage loan product with a variable interest rate taken in relation to residential property identified by that name. Standard Variable Interest Rate means the Standard Variable/Investment Home Loan rate of interest determined by SOMB from time to time or any other interest rate which SOMB notifies You as having replaced that interest rate. Term means the period from the Commencement Date until the agreement ends under clause 13.
15. DEFINITIONS continued Term Deposit means a SOMB investment product with a fixed interest rate for deposits of funds over a specified period of time. Total Amount Owed means the total amount of all your borrowings with SOMB excluding available redraw amounts, unused limits of continuing credit facilities, or overdrawn savings accounts. Travelex Products means travelers cheques, foreign cash, Visa Travel Money Card or telegraphic transfers provided by Travelex Ltd (ABN 36 004 179 953; AFS Licence No 222444) applied for by You through SOMB. Visa Card is a SOMB non-cash payment facility identified by that name. Visa Travel Money Card means a Visa debit card identified by that name. We or SERVICE ONE Members Banking means Service One Credit Union Ltd (ABN 42 095 848 598; AFS Licence No. 240836). Withdrawal means: (a) an over the counter withdrawal from a branch of SOMB; (b) personal cheque withdrawal; (c) direct debit; or (d) EFTPOS and Rediteller ATM withdrawal. You means the person or persons named in the Banking Plan application as the applicant.
ADMINISTRATION CENTRE Address: Mon Fri: 75 Denison Street Deakin ACT 2600 9.00am 5.00pm TELEPHONE RESPONSE CENTRE Phone: 1300 361 761 Mon Fri: 8.00am 5.30pm Sat: 9.00am 12.00pm Facsimile: (02) 6215 7171 Email: members@somb.com.au BRANCHES Australian National University Batemans Bay Belconnen Mall Bemboka Calvary Hospital Civic Cooma Deakin Narooma Queanbeyan The Canberra Hospital Tuggeranong Hyperdome Tumut University of Canberra Woden Plaza www.somb.com.au Any advice provided here is not personal financial product advice. You should first consider the Product Disclosure Statement (PDS) before acquiring the product. A copy of the PDS can be obtained from your local branch. Depending on the products or services we offer you, we will give you the following information; Schedule of Fees and Charges, and Operation of Accounts. All applications are subject to SERVICE ONE Members Banking s lending criteria. Subject to full Terms and Conditions. 2007 Service One Credit Union Limited operating as SERVICE ONE Members Banking. ABN 42 095 848 598 AFS Licence No 240836 BSB 801 009