Loan to Valuation Ratios

Turner Securities Ltd implements maximum individual loan exposure limits to reduce potential risk of loss should it be necessary to realize on mortgage security held.

At the time of approving a new loan, the amount to be borrowed, including any interest prepaid or capitalized, must not exceed the proportions of the value of all property over which Turner Securities is to take registered mortgages, as set out below.

The maximum LVR’s for various types of loans are specified in the table below.

Loans used for Commercial/retail/industrial 70%
Loans used for vacant land 60%
Loans used for rural use 50%
Loans for construction and development and where the Company isfunding that con-struction or development Up to 70% of the end value of the development

In determining the value of the relevant security property, Turner Securities relies on a valuation report from professional qualified valuers approved for appointment to Turner Securities valuation panel and their appointment to Turner Securities valuer panel is consented to by the Trustee.

Liquidity Reserve

Turner Securities Ltd will maintain at all times a minimum of 7% of Secured Note funds raised in a cash liquidity reserve in the form of a Company at-call bank account.

Turner Securities provides a consistent monthly income

for investors through fixed interest Secured Note Investments, backed by registered first mortgages over real property in Australia.