Document ID: chunk:federal_register_of_legislation:F2022L01576:body:0:p27
Version: federal_register_of_legislation:F2022L01576
Segment Type: other
Provision Reference: 
Character Range: 73015–75413

the following loan types:
    (a)   lending for land acquisition, development and construction; and
    (b)   lending for the purposes of investment.
  9.      APRA will notify ADIs of any decision to set a limit on particular types of lending at least one month before its implementation date.
  10.  APRA may require ADIs to publicly disclose the level of lending against any limits specified by APRA, for the period in which the limits apply.

[1]  Overdrafts are considered past-due once the borrower has breached an advised limit or been advised of a limit smaller than current outstandings. Non-authorised overdrafts are considered to have a zero limit for regulatory capital purposes. An ADI must, therefore, treat days past-due as commencing once any credit is granted to an unauthorised borrower and if such credit is not repaid within 90 days, the exposure must be considered to be in default.
[2]  This includes all fees and any charges that are due but unpaid as a result of missed payments.
[3]  The main characteristic of these concessions are that an ADI would not extend loans or grant commitments to borrowers, or purchase their debt securities, on such terms and conditions under normal market conditions.
[4]  Refer to paragraph 29(e) of this Prudential Standard.
[5]  The requirements to be met by the Board must, in the case of a foreign ADI, be read subject to Prudential Standard CPS 510 Governance (CPS 510), which requires a foreign ADI to nominate a senior officer (whether a director or senior executive) outside Australia with delegated authority.
[6]  An override occurs when an exposure is approved outside the ADI's credit assessment criteria. This may also include where decisions suggested by models, such as a scorecard, are overridden. Overrides may occasionally be needed to deal with exceptional or complex credit applications.
[7]  The National Credit Code as per Schedule 1 to the National Consumer Credit Protection Act 2009 (Cth).
[8]  This also includes an ADI's policies, processes and practices for collateral measured at fair value that do not meet the requirements of this Prudential Standard, including circumstances where an ADI's collateral valuations are considered deficient.
[9]  For example, highest and best use arising from redevelopment prospects, and any possible increase in value consequent upon special investment or finance transactions.