In late October, Rural Bank released simplified Facility Terms for all new lending contracts.
This update is the latest in several updates which Rural Bank has released since the introduction of unfair contract terms legislation to small business lending in November 2016.
Alexandra Gartmann, Executive, said the Bank had refined some specific contract clauses to make them fairer for the customer. “This version reflects continuing regulatory guidance in relation to the legislation and to align with the new Banking Code of Practice released on 1 July 2019,” she said.
“Further, for relevant agri business contracts entered into or renewed from 12 November 2016, Rural Bank will not enforce any term that is inconsistent with the updated terms. This is fairer for our customers.”
In changing its facility terms, there has been no impact to any customer’s loans with Rural Bank.
Rural Bank is committed to providing exceptional financial services, knowledge and leadership to help farm businesses grow. If customers have any questions regarding this change or would like to be issued a contract with the updated terms, please contact your Relationship Manager or the Rural Bank customer service team on 1300 660 115.