Monitoring and Controls
The experience of the Company’s Directors and management team is further supported by an appropriate system of monitoring and control reports that are produced and aligned with processes designed to ensure pro-active actions to minimise risk exposure.
The Company will ensure its portfolio is diversified across an appropriate spread of property sectors and geographical regions relevant to the portfolio size. The following specific features of our lending policy and processes are designed to minimise potential risk:
- The primary security taken must be a first registered mortgage over real property;
- In certain circumstance (and in addition to the security referred to above) other securities will be taken by the Company as additional security support including, but not limited to, additional first or subsequent collateral mortgages, guarantees, company charges, sinking funds or interest prepayments;
- The value of property offered as security is assessed by a professional valuer instructed by the Company. The valuer is experienced in the type of property and relevant geographic location and carries an appropriate level of professional indemnity insurance cover;
- The loan to valuation ratio is within the maximum lending policy ratios set out below;
- Turner Securities Ltd’s panel valuers are accredited by Turner Securities Ltd board and consented to by the trustee Australian Executor Trustees Limited; and
- Assessment of the borrower’s credit history, loan servicing capacity and the nature and location of the security so the Company is confident of recovering the loan monies.