Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p19
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 69110–72667

dealings with other sectors are for purposes other than business purposes or housing purposes.

Purpose class                              Means the initial classification of finance into housing, personal or business.

Purpose sub- class                         Refers to the secondary classification of finance by intended use.

Residential property / property (purpose)  Refers to the classification of residential property for which finance has been extended to a household by (intended) occupancy into owner occupied or investment.

Steps in the provision of finance

    17.         Key terms in the EFS collection relating to steps in the provision of finance are defined as follows, given in the approximate sequence in which the steps occur:

Application                                         A genuine application for finance made by a potential borrower.

                                                    It includes: internal refinancing. Report the total amount of finance applied for.

                                                    It excludes: applications for pre-approval of finance.

Received                                            An application for finance is received by the ADI or RFC when sufficient information and/or relevant documentation have been submitted to allow for the application to be initially assessed.

(application)                                       It includes: any applications subsequently withdrawn or cancelled in the same reporting period the application is received.

Borrower-accepted commitment                        Means a firm offer to provide finance that has been accepted by the borrower.

(commitment)                                        A borrower-accepted commitment exists for a loan or finance lease once an application has been approved, a loan/finance lease contract or letter of offer has been issued to the borrower, and the borrower has accepted the offer.

                                                    For bills, a borrower-accepted commitment occurs when the bill is accepted.

                                                    It includes: agreements to increase the credit limit of an existing loan contract (for example, as part of an internal refinance).

Funded                                              A loan or finance lease is considered funded once any portion of the funds is made available for the borrower to draw down according to the terms of the contract. This will occur after there is a borrower-accepted commitment to provide finance.

                                                    For fixed-term loans and finance leases, the entire value of the loan or finance lease is to be reported as funded in the period in which the credit is first made available to the borrower (whether or not it is drawn down within that period). If the loan is disbursed over a period of time (multiple drawdowns) then report only the portion made available to the borrower for the first time that period (whether or not it is drawn down within that period).

                                                    For revolving credit facilities, the entire value of the credit limit is reported as funded in the period in which the credit is first made available to the borrower (whether or not it is drawn down within that period).

                                                    For internal refinances, report the total value refinanced, not just the increase in the credit limit.

                                                    Report