11Loan and security documents

11 Loan and security documents

11 Loan and security documents

11.1 This rule applies where:

11.1.1 a solicitor is engaged to give advice to a proposed signatory that will be:

11.1.1.1 a borrower, a grantor of a security interest, or a security provider referred to as a borrower (a borrower) in loan or security documents, or

11.1.1.2 a third party mortgagor, guarantor, surety mortgagor or indemnifier (a guarantor) providing security for the borrower, and

11.1.2 the solicitor has been asked to provide evidence of the advice.

11.2 The solicitor providing the advice must verify the identity of the proposed signatory using the Verification of Identity Standard contained in Schedule 8 to the Model Participation Rules determined by the Australian Registrars’ National Electronic Conveyancing Council as adopted and made by each jurisdiction pursuant to section 23 of the Electronic Conveyancing National Law.

11.3 The evidence of advice provided by a solicitor to a borrower must be in the form of:

11.3.1 Law Society of NSW Declaration by Borrower/Grantor of a Security Interest Schedule 1, 1A or 1B, or

11.3.2 Law Institute of Victoria Australian Legal Practitioner’s Certificate 1 (Schedule 1).

11.4 The evidence of advice provided by a solicitor to a guarantor must be in the form of:

11.4.1 Law Society of NSW Declaration by Third Party Mortgagor, Guarantor, Surety Mortgagor or Indemnifier for the Borrower/Grantor of a Security Interest Schedule 2 or 2A, or

11.4.2 Law Institute of Victoria Australian Legal Practitioner’s Certificate 2 (Schedule 2).

11.5 Where an interpreter or translator is present while the advice is being provided:

11.5.1 the name of the interpreter or translator must be included on the relevant Law Society of NSW Declaration or Law Institute of Victoria Australian Legal Practitioner’s Certificate, and

11.5.2 the interpreter or translator must be asked to complete a certificate in the form of:

11.5.2.1 Law Society of NSW Interpreter’s Certificate Schedule 3, or