DefinitionsDefinitions

Definitions

A separate form for commercial finance in all eight states should be completed. Where the entity has no activity in any state, check the “nil form” box. The form requests details of new commitments to provide commercial finance to private and public enterprises. Only the Australian activities of the business should be included on the form. If exact figures are not available please provide careful estimates. Please note that the items listed under ‘Include’ and ‘Exclude’ are examples and should not be taken as a complete list of items to be included or excluded.

What is a “commitment”?

A commitment is a firm offer to provide finance which has been accepted by the client. A commitment generally exists once the loan application has been approved, and a loan contract or letter of offer has been issued to the borrower.

Include:

• commitments to related corporations except to those related corporations within the same Financial Sector (Collection of Data) Act 2001 category or Australian and New Zealand Standard Industrial Classification (ANZSIC) class;

• commitments for hire purchase agreements for commercial finance;

• commitments for debt participation in leveraged lease agreements;

• commitments that involve or make provision for the issue of bills of exchange to be accepted, discounted or drawn by you;

• new commitments which have also been cancelled during the month;

• commitments for standby agreements; and

• commitments for revolving credit loans to individuals secured by mortgage (mortgage backed overdrafts) on residential properties where the stated purpose at application is as a commercial line of credit.

Exclude:

• commitments to non-residents;

• commitments for lease agreements (other than hire purchase agreements and debt participation in leveraged lease agreements), these should be reported on RRF 393.0 Lease Finance;

• deposits with financial institutions;

• the purchase of securities unless it involves a direct commitment to a client;

• bills of exchange and promissory notes purchased and held;

• commitments contingent on some specified eventuality (e.g. bill endorsement, guarantees, letter of credit) unless and until that eventuality occurs;

• commitments for discounts which exists as options under acceptance commitments; and

• commitments for personal investment loans – these should be reported on RRF 394.0 Personal Finance.

What is a “dwelling”?

A dwelling is a place of residence which is:

• contained in a building which is an immobile structure;