LAWS4710 DRAFTING ASSESSMENT SEMESTER 2, 2023
You have been instructed by Kneecappers Pty Ltd ACN 092 761 044 (KPL), a private
commercial lender, to draE the loan and security documents required to give effect to a loan
being provided by KPL to Hulkling Engineering Pty Ltd ACN 055 921 888 (HEPL). Mario and
Giovanni Scorsese are the directors of KPL and its registered office is at 1 BasUon Place, West
Perth WA 6005.
HEPL is a new company and does not own its own premises with its principal place of
business being a commercial property it rents at 27 Drovers Street, Osborne Park WA 6017.
Bruce Banner is the sole shareholder in HEPL and is also the sole director and company
secretary.
It is agreed that as security for the loan of $500,000 KPL will take the following:
a) a charge over all the current and future personal property of the borrower and
guarantor/s; and
b) a first mortgage over 13 Green Street, East Perth WA 6004 (see the aaached
CerUficate of Title).
Bruce and his wife, Beay, live at 13 Green Street. Beay has nothing to do with HEPL.
The key details of the loan are as follows:
Principal Loan Amount: $500,000
Interest Rate: 9.00% per annum
Penalty Interest Rate: 14.50% per annum (to be charged if the borrower is in
arrears)
First Instalment Date: The 1st of the month following the Loan Sealement
Date
Subsequent Instalment Dates: The 1st of each month following the First Instalment
Date
Security: As set out at a) and b) above
Ques:on 1
You are required to draD the following for the Deed of Loan:
a) the Recitals/Background; (1 mark)
b) the Interest Rate clause; (2 marks)
c) the Securi:es clause; and (2 marks)
d) the Execu:on clauses. (1 mark)
[TOTAL: 6 marks]
DO NOT draD the whole Deed or provide any clauses or headings other than the 4
required in this ques:on
P.T.O for Ques:on 2
Ques:on 2
Along with the Deed of Loan, what two other Deeds must be draDed to give effect to the
above transac:on?
[1 mark]
Ques:on 3
List the par:es to each of the three deeds (i.e. the Deed of Loan and the two Deeds
iden:fied in Ques:on 2 above).
[1 mark]
(Hint: your answer should be formaaed as follows:
Deed of Loan [the name of one party to the deed]
[the name of another party to the deed] etc.
and the same for the other 2 deeds idenUfied in quesUon 2 above)
Note: marks for this ques:on will be awarded as follows:
0 marks for geang the above correct for 1 Deed;
0.5 marks for geang the above correct for 2 Deeds; and
1 mark for geang the above correct for all 3 Deeds.
Ques:on 4
Name the two documents that KPL must obtain as lender and mortgagee to protect itself
from future challenges to its loan and/or mortgage.
[1 mark]
Ques:on 5
What registra:ons must take place to perfect the securi:es (be specific in your
descrip:ons)?
[1 mark]
P.T.O. for Submission Instruc:ons
FORMAT AND SUBMISSION:
You must submit your assessment as a single word document via Turnitin in Blackboard by
the due time and date of 4 pm (local time) on Friday 13 October 2023.
Please name your word doc as follows:
LAWS4710 DA [your name] e.g. LAWS4710 DA George Pavloven
Do not use the University cover sheet as Turnitin similarity checking will interpret the
cover sheet text as plagiarism. Instead, check the box in the Turnitin submission portal
confirming that the work is your own.
This assessment counts 10% towards your overall course mark
Good luck and enjoy.