Document ID: chunk:federal_register_of_legislation:F2018L00363:body:0:p10
Version: federal_register_of_legislation:F2018L00363
Segment Type: other
Provision Reference: 
Character Range: 25223–28037

used or drawn down by the ADI at the reporting date.

    1.1         Standby facilities

These facilities are approved and committed to the ADI. Generally, an ADI is required to provide written notice to trigger draw down (access to the funds) on these facilities.

    1.1.1   Facilities with same day draw down

Include those standby facilities that can be drawn down (funds accessed) on the same day that notice is given by the ADI of its intention to draw down on the standby facility.

    1.1.2   Facilities with 2-5 day draw down

Include those standby facilities that can be drawn down (funds accessed) within two to five days after notice is given by the ADI of its intention to draw down on the standby facility (i.e. a two to five day waiting period).

    1.1.3   Facilities with greater than 5 days draw down

Include those standby facilities that can be drawn down (funds accessed) five days after notice is given by the ADI of its intention to draw down on the standby facility (i.e. a five day waiting period).

    1.2         Bill acceptance/discount facilities

These are another form of liquidity/funding. The funding is provided to the ADI by a facility that discounts bills (e.g. bank accepted bills). Principal and interest (discount) owing on the bill is repaid or 'rolled over' by the ADI on maturity of the bill.

    1.3         Letter of credit facilities

This is an irrevocable and unconditional undertaking by an ADI to repay principal and interest of a loan in the event of default.

    1.4         Overdrafts

These are accounts that may be overdrawn up to limits agreed to with an ADI.

    1.5         Other liquidity support facilities

Include all other off-balance sheet liquidity support facilities contracted for the ADI's use that are not included in the categories above.

    1.6.1   Facilities with related entities

Include liquidity support facilities that are provided to the ADI by its related entities.

    2.             Value of charge/security that has been granted over assets of the ADI

    2.1         Fixed charge

A fixed charge is a form of security provided to the lender relating to a specific asset or assets. A fixed charge will generally limit the ability of the ADI to deal with those assets (i.e. investment securities).

    2.2         Floating charge

This is a charge where the creditor's charge or claim is not lodged over a particular asset, but is fixed on a specific asset (or assets) only if the default occurs. This process is called crystallisation of the charge. A floating charge leaves the debtor free to buy, sell and vary the assets until such time as the charge is crystallised.

    [1]  The definitions of 'credit union' and 'other ADI' in paragraph 17 of this Reporting Standard provide that Cairns