QBM Lawyers has a strong practice in lending and lending litigation. Our Gold Coast lending lawyers have acted over the years for a number of lenders in documenting loans and in taking action for enforcement if the terms of those loans are contravened.
Our business lawyers will recommend the obtaining of adequate security to allow the best remedy if a loan is not repaid and can advise in respect of the enforceability of security and whether terms in loans are potentially unenforceable as penalties.
While the best security for a loan is usually a first mortgage over real property with significant equity, our gold coast lending lawyers understand that on occasion this cannot be achieved and that a party wishes to proceed with the making of a loan notwithstanding that only lesser security is offered. We can offer advice in relation to all forms of security including subsequent mortgages, general security agreements, mortgages over leases, and guarantees and advise as to the risks associated with those securities so that the parties fully appreciate the loan transaction.
Lenders should act like lenders and as such look at whether the borrower has the ability to service the loan and what assets might be available if it is not repaid. The terms of the loan are also critically important to determine rights of recovery. As an example, the limitation period for loans that do not specify a repayment date can be six years after the date of the loan, and in some cases the right to recover can be lost if proceedings are not taken in that period or the debt is not acknowledged in that period.