Document ID: chunk:federal_register_of_legislation:F2020L00589:body:0:p2
Version: federal_register_of_legislation:F2020L00589
Segment Type: other
Provision Reference: 
Character Range: 3017–4550

Asset;

         (6)               the contract or deed of borrowing, referred to in paragraph (5), between the Holding Trustee and the lender may not limit the lenders right of recourse, under the contract or deed, to only the Asset in the event of default;

         (7)               the lender may require that personal guarantees are given as part of the Intermediary LRBA;

         (8)               the arrangement is established by a legally binding deed(s) under which the trustee of the fund and the Holding trustee agree, for:

             (i)                  the trustee of the fund to maintain all borrowing obligations entered into by the Holding Trustee in respect of the borrowing referred to in paragraph (5);

             (ii)                the trustee of the fund is absolutely entitled to any income derived from the Asset, less fees, costs, charges and expenses incidental to the acquisition, holding or management of the Asset;

             (iii)              the trustee of the fund has the right to acquire the legal title of the Asset on completion of the borrowing referred to in paragraph (5);

             (iv)              the rights of the Holding Trustee or any Guarantors against the trustee of the fund in connection with default on the borrowing referred to in paragraph (5) is limited to the Asset.

         (9)               the documentation referred to in paragraph (8) in connection to the borrowing referred to in paragraph (5), is disclosed to the lender at the time of the borrowing.