ATTN: Mr Zac and Mrs Miranda Lambert
Zachary Brown No 1 Pty Ltd
32 Bond Street
Burleigh Heads QLD 4220


Dear Mr and Mrs Lambert,


Re: Mortgage of 99 College Drive Varsity Lakes QLD 4227

I refer to our recent attendance upon you on June 24, 2013 in which we discussed obtaining an investment loan in order to facilitate your purchasing of an investment property.

We confirm your instructions to act on and provide advice on the following matters:

Our advice to you is based on these instructions.


Structure of the Mortgage:

Your loan of $300,000.00 to purchase an investment property has been drafted up in the name of your company, Zachary Brown No 1 Pty Ltd (“the Company”) as requested. The loan has been structured as a mortgage of the business premises of ‘Uncaged Café’, which is owned by the Company. These premises located at 99 College Drive, Varsity Lakes QLD 4227, will become encumbered by a mortgage from 

Big Bankers (ACN 123 321 213) (“the bank”), who in return will provide the loan of $300,000.00 to the company for the purpose of purchasing an investment property.

Further to this Big Bankers have also requested that you in a personal capacity act as guarantors for the loan to the Company, providing personal guarantees and indemnities to the value of $300,000.00.

The loan is for a five year period, structured as an interest only loan, meaning that standard payments made during this term are being taken off the interest amount only, and not reducing the principal amount of the loan, which will be due in full at the end of the five year period. If any additional payments are made, or payments are made above the standard payment amount then this additional amount will reduce the principal amount of the loan.

Interest is being charged at a rate of 7.5% per annum that is calculated monthly. The first repayment is due one month after the loan amount of $300,000.00 is paid to you by Big Bankers, with subsequent repayments being due on a monthly basis on the same day as the first payment.


Guarantee and Indemnity for Big Bankers:

The Big Bankers Guarantee and Indemnity form that is attached to this letter outlines the obligations of Zachary Brown No 1 Pty Ltd as the borrower, and in the event of its default your obligations as guarantors to its loan.

Under this agreement the company agrees to pay to Big Bankers the required amount owed each month on the day specified, and agrees to indemnify them against an liability, loss or costs they incur as a result of not paying the required amount on time. The company also agrees to pay the bank all reasonable costs incurred in arranging and administering the title documents, or any discharges, as well as all taxes, fees and charges connected to the loan. 

Under Big Bankers Guarantee and Indemnity form if the loan is defaulted upon the maximum amount that can be recovered from you by the bank is the principal amount of $300,000.00 plus a further amount of 20% of this figure to cover excesses. Excesses

are defined in the document as “any unarranged drawing by the customer or an authorized representative of the customer where the resultant debt exceeds the formally agreed limit.”

As well as this the bank can also recover the interest on this amount calculated at the highest rate charged, plus all amounts payable under clauses 4, 5 or 7 of the form, and all amounts payable for a breach of any obligation owed under this form.

Please take the time to read the conditions set out on this form.


Liabilities of the Company and the Mortgage’s Guarantors:

Under the mortgage document the company is bound by the terms outlined on the attached ‘Form 20’. There are certain liabilities that you agree to upon the signing of this document.

In the event that the company defaults on the loan the bank may require the full amount that remains owing to be immediately due and owing. The bank can also take possession or control of the property and deal with the property in a way as set out in clause 4. Under clause 7 the bank also has the power to appoint a receiver and under clause 8 carry out building works to the property, and appoint receivers under clause 8.

If the company defaults then you as guarantors will become liable for the agreed amount of $300,000.00.

Please take the time to read the attached draft mortgage and Guarantees and Indemnities form and familiarize yourself with your obligations. Fee free to call our office if you have any questions. The next step if you would like to proceed with taking out the mortgage is to arrange an appointment with us to sign the mortgage documents, which will then be registered.

If you have any questions then please get in contact with us.


Yours faithfully,

Jesse Inns