An old client came to us last week seeking independent advice on loan contract, guarantees and mortgages being given as security for a loan.
The deal involved borrowing just over $175k for 6 months, but only receiving $150k after application fees, interest paid in advance and legal fees, on top of our fees for the independent advice.
A colleague of mine had some cash sitting in a bank and was interested in earning 15% p.a. for 6 months.
We prepared documents quickly and settlement occurred within 5 days of the parties being introduced to each other.
The lender obtained first mortgages over 2 properties worth in total more than 3 times the $150k loan. The wife of one director who put up one of the properties still had to be sent off for independent legal advice, but not the 4 company directors. All parties are happy.
For deeds of loan and guarantee, mortgages and associated documents, contact Michael Paterson & Associates.