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A GUIDE FOR

INVESTORS

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CONTENTS

03/

Points of contact within

Southern Cross Partners

04/

How to access the

Investment Portal on the

website

05/

Website listings explained

06/

Loan Management and

Communication

07/

Statements & Tax

Certificates

08/

Repayments, Extensions &

Secondary Market

09/

How do I get my money

back?

10/

Frequently Asked Questions

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WELCOME

Thank you for choosing Southern

Cross Partners, we are delighted

to have you on board partnering

with us.

This document is a handy guide

to get you started, from tips and

hints on the website to how we

communicate the management of

the loan to you.

Here at Southern Cross Partners

we pride ourselves on having real

people at the end of the telephone

to answer any query you may

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POINTS OF

CONTACT

Relationship Managers are here to answer any queries you may have about Southern Cross Partners and your current portfolio:

Senior Relationship Manager

Heather Kentsley can be contacted on 09 535 2239 or 021 91330

and email heatherk@scpartners.co.nz

Bay of Plenty Relationship Manager

Carlen McEwen can be contacted on 021 1933 471 or 07 281 1519

and email carlene@scpartners.co.nz

Our Administration Team is on hand to help with accessing the website, receiving statements, the receipt of new funds and with any specific queries about your individual investments in such as repayment dates or interest payments. Investment Administration team can be contacted on 09 535 2239

and email investments@scpartners.co.nz

New Enquiries

Many of our existing clients refer others to us and all new enquiries are looked after by our Relationship Management Team so please feel free to make contact should you have someone who would like to talk to us.

Relationship Manager Auckland & Nationwide

Hend Salam is based in Auckland and can be contacted on 0800 00 58 43 and email hend@scpartners.co.nz.

Relationship Manager

Ross Latham is based in Auckland and can be contacted on 021 521 257

and email ross.latham@scpartners.co.nz.

Bay of Plenty & Waikato Relationship Manager

Carlene McEwen is based in the Bay of Plenty and can be contacted on 021 1933 471

and email carlene@scpartners.co.nz. Carlene is the person to speak to for all new enquiries in the BOP & Waikato area.

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HOW TO

ACCESS THE

INVESTMENT

PORTAL ON

THE WEBSITE

Our website is where you gain access to the Investment portal. You will need to log in with your unique username that you were emailed.

Click here to be taken directly to the log in page and as in the previous

information, we are here to help should you require any assistance – just call.

Our website contains a

series of videos to assist

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WEBSITE

LISTINGS

GUIDE

Here are some key features about the Mortgages we have on offer.

The majority of applications for borrowing come to us via the mortgage advisor network.

Our credit team assess all aspects of the application to ensure it meets our criteria including but not limited to;

All mortgages are first provided to the borrower by Southern Cross Partners Limited.

All mortgages must then be placed on our website portal for all registered investors to view within 3 working days – This means that ALL mortgages are offered.

Our nominee company Loan Investment Trustees Limited holds the first

mortgage which is registered on the title of the property and is held in trust for all investors.

We hold a register lisitng all investors in each loan

Type of Property Location Affordability Purpose of the loan

Loan size Loan to

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LOAN

MANAGEMENT

AND

COMMUNICATION

It is our job as Loan Managers to

manage the loan on behalf of the lender of the funds, which is you, as the

investor.

Throughout the term of the loan we will be contacting the borrowers for assorted reasons and each time we do we will be communicating with you, usually by email.

Most of these communications are purely to keep you informed and no action

is required but please read each one carefully and do not hesitate to contact us should you require any clarification.

Our administration team would be your point of contact for questions regarding these communications.

WE WILL CONTACT YOU

AT THESE JUNCTURES;

6 weeks prior to loan maturity date

An update 2 week prior to loan maturity date

When a loan has been renewed

When a loan has requested to repay

If a borrower has missed any payments – in Arrears If we have issued a Property Law Act notice (PLA) and any updates Details regarding a mortgagee sale 1 2 3 4 5 6 7

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STATEMENTS

& TAX

CERTIFICATES

A full Transactional Statement of your account is sent via post every 6 months for;

An Opening Statement and Welcome letter are sent via email for all new transactions.

If you would like a statement of your investments in between these times please contact the Administration Team A Resident Withholding Tax certificate is sent in the first week of April showing all tax that has been paid to the IRD on your behalf.

The period 1 April – 31 August

The period

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REPAYMENTS,

EXTENSIONS

& SECONDARY

MARKET

Your money is invested into a specific loan, with the terms of that loan fully disclosed to you, before you invest. Investors get their money back when a loan they have invested in repays (see below for what happens if a borrower is in default and the loan is not repaid in full).

Early Loan Repayment

All borrowers have the right (through law) to repay their lending at any time. This means that it is possible that the loan that you have invested in, may repay early. If this occurs, you will receive interest up to the day of repayment. You will then have the opportunity to reinvest your funds into another available investment.

As managers of your loan investment Southern Cross Partners may, in some cases, decide that an extension to the loan may provide the most efficient strategy to obtain loan repayment, and in these cases, you will be advised of the revised loan terms, including the new maturity date and your investment continues unchanged.

If you do not wish to continue with your investment with this new maturity date,

after the maturity date has passed. When the loan does repay, the funds are collected on your behalf by our Solicitors, (who normally deal through the borrowers’ solicitors). These funds are lodged to the Nominees Trust bank account, Loan Investment Trustees

Limited, and are then disbursed in terms of your instructions, which will either be: Pay by Direct Credit to your Bank Account

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HOW DO I GET MY

MONEY BACK?

What happens if there is a shortfall?

It is possible, due to the borrower’s changed circumstances or a significant decrease in the value of the borrower’s property, that it may be prudent for us to accept a lower repayment amount which could leave a shortfall for investors. Alternatively, we may decide that a mortgagee sale will yield a better result for investors rather than accepting a lesser amount from a borrower. This could also result in a shortfall of funds (which the borrower and any guarantor is still obliged to meet). To learn more about what happens if there is a shortfall when a loan is repaid, click here

Exiting an Investment early

Should you wish to exit all or part of your investment prior to maturity, we do offer a Secondary Market service, which is where existing investments can be offered for resale (on our website) to other investors. In some situations, use of this service may incur an administrative charge of $175.00 and you should

familiarise yourself with our Secondary Market rules so that there are no

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FREQUENTLY

ASKED QUESTIONS

Can you help me choose an investment?

Unfortunately, we are unable to help you chose an investment, this decision is yours to make. We can help explain any procedural matters that are unclear to you, but we cannot provide you with any advice or guidance in respect to individual loans or to your wider investment strategy. If this is required, we would urge you to speak to a suitably qualified Authorised Financial Advisor.

Can I get involved with managing the loan?

No. Southern Cross Partners is authorised to manage the loan and make all decisions

Secondary Market service where, in some circumstances, you can re-offer your loan for sale to other investors. Click here for the rules for this service.

What happens if the borrower does not pay their interest?

Firstly, Southern Cross Partners will deal directly with the borrower to sort out the problem. We have a lot of experience with this, and a range of strategies that we employ.

In respect to your interest payments, these are paid from the installments that the borrower pays to us. If they do not pay,

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FREQUENTLY

ASKED QUESTIONS

When can I expect my interest payments?

Most interest payment are paid out monthly unless you have chosen a compounding interest investment (see next question) The borrower pays their interest into our trust account and this is then processed and paid out to all

investors on the monthly date that the loan was provided. EG the loan was taken out on the 10th of April therefore the investors interest is calculated to the 10th of the month and paid into their bank account on the next business day.

What happens if Southern Cross fails?

In the unlikely event of a failure of our business, we have a contractual arrangement with another finance provider to take over the management of the business. There may be some minor interruption to services while the transition occurs, but things would quickly be back on track, with no adverse effect to our investors.

Of course, the mortgage which supports your investment, as well as your interest payments, are all held in Trust by Loan Investment Trustees Limited. They do not form part of our business, and those funds / mortgage securities are not immersed in our business in any way. They are held completely separately, so any failure of Southern Cross Partners does not involve your Investment or your Interest Payments

How does Compounding Interest work?

When an investment is chosen that is listed as COMPOUNDING INTEREST the interest on your principle investment sum will be calculated daily and compounded (added to your principle investment sum) monthly. No interest payment will be

made throughout the term of the loan. The total principle investment sum, including all interest earnt will be paid at loan repayment. A statement can be supplied at any time upon request.

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DEFINITIONS

LVR – Loan to Value Ratio, the loan

amount as a percentage of the value of the property.

PLA – Property Law Act notice, a legal notice that can be issued by the mortgagee if the borrowers are in default Arrears – Missed loan payments

Drawdown date – The date the mortgage was provided to the borrowers

Panel Valuer – Valuer that is on the list as acceptable to Southern Cross Partners. We prefer larger firms that have the required checks and measure in place over sole operators.

GST Exclusive - The amount quoted has had the GST portion deducted from the value. Used for loans that have a business aspect to them. i.e. LVR calculated on the GST exclusive valuation.

References

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