Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p35
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 128982–132922

occupation status of the property used as security).

                                                    It includes: holiday/vacation homes and part-time residences that are not the borrower's or borrowers' principal place of residence.

                                                    It excludes:

                                                         * part-time residences that are the borrower's or borrowers' principal place of residence.  Report these under owner-occupied housing; and
                                                         * loans where the borrower is not a household.  Report these under the appropriate business category.

J

Jurisdiction  Means the country in which the business entity is resident.

L

Land                           Means the following categories:

                                    * non-residential land;
                                    * residential land; and
                                    * rural property.

Large (business size)          A business is classified as large if they have turnover greater than or equal to $75 million.

                               Include exposures classified by ADIs using the internal ratings-based approach to credit risk as 'Corporate' in this category.

Leases                         Has the meaning as in AASB 16 Leases (AASB 16).

                               In general, means an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time.

                               It includes:

                                    * finance leases; and
                                    * operating leases.

Legal expenses                 Refers to fees incurred when a business secures the services of a legal representative, or requires legal representation, or seeks professional advice on legal matters.

Lending fee/premium            Refers to a fee/premium that the borrower of a security pays to the lender when the securities loan is backed by non-cash collateral. The lending fee/premium is predetermined in a securities lending agreement between the borrower and lender and should be expressed as an annualised percentage of the market value of the securities borrowed.

Loan-to-valuation ratio (LVR)  Defined in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).

Loans                          Means a financial asset that is: (1) created when a creditor lends funds directly to a debtor; and (2) is evidenced by non-negotiable documents.

                               It includes:

                                    * advances;
                                    * secured and unsecured loans;
                                    * mortgages;
                                    * commercial loans; and
                                    * redeemable preference share finance not evidenced by a security.

                               It excludes:

                                    * reverse repos;
                                    * lease arrangements (report as leases); and
                                    * equity participation in leveraged leases (report as leases).

Long-term                      Original contractual term to maturity greater than 12 months.

M

Margin                  Means the weighted average internal margin on that product (the amount added to the cost of funds or subtracted from the value of funds to determine the interest rate).

                        For assets, the margin is equal to the weighted average interest rate charged to the borrower less the cost of funds.

                        For liabilities, the margin is equal to the value of funds less the weighted average interest rate paid to the depositor or holder.

                        If a derivative is margined it means the variation margin is