Document ID: chunk:federal_register_of_legislation:F2018L00379:body:0:p8
Version: federal_register_of_legislation:F2018L00379
Segment Type: other
Provision Reference: 
Character Range: 19544–22375

of interest and other income not taken to profit, and net of any amounts written off.  For overdraft facilities and revolving lines of credit, the outstanding balance is to be reported as the total amount of the facility outstanding, and not the amount that the facility exceeds the previously approved limit.  For overdrawn savings accounts, the outstanding balance represents the debit balance of the account.

Specific instructions

A facility subject to a regular repayment schedule is regarded as "90 days past due" when: (a) at least 90 calendar days have elapsed since the due date of a contractual payment which has not been met in full; and (b) the total amount outside contractual arrangements is equivalent to at least 90 days worth of contractual payments.  An item shall cease to be classified as 90 days past due when arrears have been reduced so that the exposure no longer represents 90 days' worth of contractual payments outstanding post the date the facility becoming past due.

For other facilities (e.g. overdrafts, other items of a revolving nature and overdrawn savings accounts), the basis of determining the period of irregularity will be the number of consecutive days that the facility has been outside contracted arrangements.  For example, an overdrawn savings account is to be regarded as say 16 days irregular when it has been overdrawn for 16 calendar days.

Category one facilities

Category one facilities include:

    (a)          an exposure that is secured by a registered first mortgage against a residential property and is insured by an eligible lenders mortgage insurer for 100 per cent of the outstanding balance;

    (b)          an exposure that is secured by a registered first mortgage against a residential property, where the ratio of the outstanding balance, less the amount of mortgage insurance, to the valuation of the security is no more than 80 per cent (where the exposure is 6 months or more worth of payments past due, the valuation must be no older than 12 months); and

    (c)          an exposure that is secured by a qualifying registered second mortgage where:

       (i)            the ratio of the outstanding balances of the facilities secured by both first and second mortgages to the valuation of the residential property does not exceed 80 per cent, and the first mortgage cannot be extended without it being subordinated to the second mortgage; or

       (ii)         where the ratio of the outstanding balances of the facilities secured by both first and second mortgages to the valuation of the residential property exceeds 80 per cent, and the first mortgage cannot be extended without it being subordinated to the second mortgage, and the outstanding balance is 100 per cent mortgage insured by an eligible lenders mortgage insurer.

Category two