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Margin Loans Margin loans - security and guarantors

Discussion in 'Finance & Banking' started by dkmc, 6th Aug, 2007.

  1. dkmc

    dkmc Well-Known Member

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    Im thinking about getting a margin loan in a new family trust

    Trustee- is a company
    The shares itself will be security

    Do I need to give a personal guarantee - in my own name
    and a Directors guarantee - director of the company

    If my mum was the director of the family trust
    I dont want her as guarantor
    Will margin loans insist on the directors guarantee?

    dkmc
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Some will, some won't - depends on the lender. Download the application forms for the lenders you are considering and look at what they require.
     
  3. dkmc

    dkmc Well-Known Member

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    Thanks sim

    Its rather tedious searching
    Can anyone name one that doesnt, or has experienced this, and have not needed a directors guarantee
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

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    Neither BT nor commsec do in my experience.

    cheers
    N
     
  5. dkmc

    dkmc Well-Known Member

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  6. Nigel Ward

    Nigel Ward Team InvestEd

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    Must have changed since my company trustee went through the process because I did not give one...

    Directors guarantees are bad for your wealth! :eek:
     
  7. dkmc

    dkmc Well-Known Member

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    So far BT, ANZ, leveraged equities, and comsec require a directors guarantee
    Havent found one that doesnt yet
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I just had a quick look at my St.George Margin Lending application and I don't think there was a directors guarantee signed for that.
     
  9. dkmc

    dkmc Well-Known Member

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    Wow thanks sim

    I just checked St Georges application form and terms and conditions

    This is a big plus for St George vs the rest
    that not many people think about

    In fact I see no mention of any guarantee - personal or director

    Ive gone thru the process of trying to release equity -without director guarantee - run into brick walls every where

    This is a big piece of the asset protection puzzle for me
    Ive emailed them just to double check

    thanks again
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    :eek: don't do that !!!

    Now there's sure to be a guarantee required for St.George :D
     
  11. dkmc

    dkmc Well-Known Member

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    Im trying to figure out whether they have just worded guarantor in a different way in their T+C
    what happens if you default??
    who do they go after - if there is no director guarantor
    or personal guarantor