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Automotive Finance Lending Credit Policy

Automotive Finance Lending Credit Policy - Consumer and Business

List of policy requirements

OverviewStandards RequiredPurposeEligible Goods includeApplication EligibilityEligible Sales ChannelsProduct OverviewGeneral Underwriting StandardsGuarantorsNon ResidentsServiceability (Capacity)Business IncomeTax file numbersCredit Bureau checksCredit Reference checksAdverse BureauScore Card Cut offsApprovalsReferred ApplicationsDeclined Applications(3rd party) Broker introduced businessPrivacy PolicySecurity RequirementsSecurity InterestsRolloversReplacement FinanceSubstitution of SecurityAssignments and NovationsVariationsTermination or expiryExtensionsLease Post Maturity PaymentsThird Party Channels - Novated LeasingRegulatory Information

WBC.104.001.1550CONFIDENTIAL

Automotive Finance Lending Credit PolicyThird Party Channels - Novated Leasing

23/03/2012 Third Party Channels - Novated Leasing of 86

Overview of Collection StrategiesIdentity Verification (AML)HardshipAccreditation and EducationRoles and ResponsibilitiesThree Lines of DefenceHindsightingAccountabilityData RecordingAppendix aAppendix b & c

Document Control

Contact Robyn Thomas

Owner Unsecured RiskAustralian Banking RiskAustralian Financial ServicesWestpac Group

Date Last Reviewed 8 June 2012

Date Last Updated 8 June 2012

Change History Change Date Description of Changes

11 May 2012 First Issue Online.31 May 2012 Remove AML table and include reference to

Sovereign AML/CTF ID Requirements Matrix.

Hardship section: Add link to St.George Assist.

8 June 2012 Amend CAL’s in Score Card Cut off’s section Remove referral to specific CAL’s under

Novated Lease Matrix table.




Overview

This document deals only with the product specific credit rules applicable to St.George Auto Finance.For expert guidance refer to your Acceptance Finance Manager at Automotive Finance Operations.

End Policy — Overview




Standards Required

Purpose Eligible Goods Application Eligibility Eligible Sales Channels Product Overview General Underwriting Standards:

End Policy — Standards Required




Purpose

St.George Automotive Finance provides finance to both Consumer and Business customers for the purchase of eligible goods i.e. a new or used motor vehicle.The first requirement is to determine if the applicant will be:

Applying as an individual for private, domestic or household purposes or for Business or investment purposes or

The applicant is a Company or Trust

If the applicant is an individual or a strata corporation and the goods are wholly or predominantly for personal, domestic or household purposes (more than 50%) the finance will be regulated by NCCP.Irrespective of the applicant, if the goods are wholly or predominantly (more than 50%) for business or investment purposes (i.e. used in the production of assessable income) the application for finance is not regulated by NCCP.

Finance applications for business purposes must be supported by a completed Business Purpose Declaration signed by the customer and written evidence provided by the employer must confirm that the vehicle is predominantly for business use.

Note:Novated Leases are not covered by NCCP and a Business Purpose Declaration is not required.

End Policy — Purpose




Eligible Goods include

DescriptionMotor Car NewMotor Car UsedOther Motor Vehicle

End Policy — Eligible Goods include:




Application Eligibility

This policy covers the following topics:ConsumerBusiness

Consumer

Finance is available to customers who: Earn a regular verifiable income and meet our affordability

assessment under responsible lending guidelines Are 18 years of age or older Meet Credit Bureau & Default guidelines (refer to Credit Bureau

checks) Are a citizen or a permanent resident of Australia or New Zealand

and currently reside at a fixed Australian address Or

Hold a valid Corporate Business/Government sponsored Visa (refer to General Underwriting Standards)

Note:If a customer does apply and it is discovered that they do not meet these conditions, the application together with supporting mitigations may be referred to a Level 1-4 CAL holder for consideration.

Business

Finance is available to business customers who: Have an acceptable ANZSIC business code Have a registered ABN Have a demonstrated history of satisfactory financial results and

stability in their business Meet all existing and proposed commitments Have a clear Credit Bureau File for both Consumer and Commercial

file reports (refer to Credit Bureau checks)

Note:




If a customer does apply and it is discovered that they do not meet these conditions the application together with supporting mitigations may be referred to a Level 1-4 CAL holder for consideration.

End Policy — Application Eligibility




Eligible Sales Channels

Accredited Motor Dealers Accredited 3rd Party Originators i.e. P&A Arrangements, Novated

Lease Managers, Brokers Direct/Branch Business, non dealer/third party originated business

processed via Contact Centre or Branch

End Policy — Eligible Sales Channels




Product Overview

This policy covers the following topics:ConsumerBusiness

Consumer

This policy covers the following topics:Fixed Rate LoanOverview of Product Features - Consumer

Fixed Rate Loan

The Consumer Finance product is a fixed rate interest facility for the full or partial value of eligible new or used assets and may include accessories which are supported by taking security over the relevant asset. This product is available to individual customers using the goods wholly or predominantly for personal purposes (>50%).A customer planning on taking a loan with a residual amount must have a plan for the repayment of the residual at the end of the term. The customer should be questioned about this before taking the loan.

Overview of Product Features - Consumer

Feature Fixed Rate Loan Agreement

Min Finance amount $5kTerm available 12-84 monthsMaximum age of vehicle at expiration of facility

12 years

Residual Balloon LimitsMinimum & Maximum range

0-12mths 65%-70%13-24mths 55%-60%25-36mths 45%-50%37-48mths 30%-40%49-60mths 25%-30%

Interest Rate Type FixedEstablishment fee Yes




Monthly administration feeSubject to Payment cycle i.e. weekly, fortnightly or monthly

Yes

Fees/Charges on early termination Yes Statement Available on requestFinance Insurance Yes (refer to Insurance Table)Finance for Govt on road costs YesApply via Dealership YesApply via Fleet provider As per individual agreementApply over the phone(CCC- Parramatta Only) YesApply in Branch No

Business

This policy covers the following topics:Finance LeaseHire PurchaseGoods LoanOverview of Product Features - Business

Finance Lease

Available to businesses for the full value of eligible new or used assets such as motor vehicles and may also include accessories. Auto Finance purchases the asset at the customer's request and rents it to them for an agreed period. The customer may then enjoy the use of the vehicle for an agreed time in return for rental payments. A finance lease must have a residual value and the customer is liable for the residual value at the end of the term. Payments are structured to suit the customer's cash flow.Operating Lease – Fully or partially maintained Operating Leases are a product offered by some Fleet providers and are reflective of an arrangement which is entered into between the Fleet provider and the customer. Auto Finance supports the Fleet provider by providing the finance lease, the maintenance portion is provided by a third party as Auto Finance does not provide Operating Leases directly to customers.Novated Lease - For full particulars of the Novated Lease product and underwriting requirements refer to Third Party Channels - Novated Leasing.

Note:




A deposit or trade equity cannot be accepted for a Finance or Operating Lease.

Hire Purchase

Hire Purchase is available for businesses to finance the full or partial value of eligible new or used assets such as a motor vehicle. Under the hire purchase contract Auto Finance gives the client possession and use of the asset in return for regular payments. When the final payment is made the title passes to the client.Hire Purchase is suitable for businesses that want to take ownership of the vehicle at the end of the term.

Goods Loan

A Goods Loan is fixed rate interest finance contract for the full or partial value of eligible new or used assets and may include accessories. It is supported by a security interest over the relevant asset. A Goods Loan is suitable for businesses that want to take ownership of the vehicle at the start of the term. It may have a balloon payment due at the end of the loan if the customer chooses to make smaller regular monthly repayments.

Overview of Product Features – Business

Feature Finance Lease Hire Purchase Goods Loan

Min finance amount $5k $5k $5kTerm available 12-60 months 12-60 months 12-60 months

Maximum age of vehicle at expiration of facility

12 years 12 years 12 years

Residual Balloon Limits Age &Minimum & Maximum ranges


12mths 0%-70%13-24mths 0%-60%25-36mths 0%-50%37-48mths 0-40%49-60mths 0-30%

Yes. If the customer chooses this option the HP Residual Balloon minimum & maximum ranges are utilised

Rate Type Fixed Fixed Fixed




Establishment fee Yes Yes YesMonthly administration fee subject to payment method ieCoupon Book BPay

Yes Yes Yes

Fees/Charges on early repayment

Yes Yes Yes

Statement Available on request

Available on request

Available on request

Finance Insurance Yes Yes Yes

Apply via Dealership Yes Yes Yes

Apply over the phone CCC (Parramatta only)

Yes Yes Yes

Apply in Branch No No No

Note:Automotive Finance Level 1-4 CAL holders may consider any exceptions to these criteria as an exception to policy.

Commercial Loans (CLO’s - fixed and variable rate) do not form part of the suite of retail products; they are seen to be a commercial facility and as such can only be approved by a Senior Credit Manager of St.George Bank Credit, Business Risk, Australian Banking Risk.

End Policy — Product Overview




General Underwriting Standards

This policy covers the following topics:Eligible Goods and SuppliersExceptionsUndesirable GoodsPrivate SalesSale and LeasebackGuarantorsNon Residents Policy

Eligible Goods and suppliers

Vehicles (new and used) are generally to be purchased from a Licensed Dealer or a recognised supplier.

Note:Limited to a maximum of 2 tonnes for all introducers and to a maximum of 5 tonnes for an introducer specifically approved by an individual State Manager.

Note:Majority of St.George Automotive Finance business is sourced from within the St.George Accredited Dealer network

Exceptions

All assets in the following categories can be approved by the appropriate CAL Holder (refer to CAL Holder restrictions table).

Caravans, Campers and Motor homes are specialised security and their use is different from that of a standard passenger or commercial vehicle.

Boats (new or used) for recreational purposes. This includes inboard or outboard engines and road registered boat trailers that must be purchased from an accredited marine vessel supplier.

Motor Bikes Trucks (rigid and articulated) and tray bodies over 2 tonnes capacity

These asset categories are deemed to be suitable but do not comply with Auto Finance Eligible Goods policy.




Undesirable Goods

These goods are not considered as an acceptable asset category and therefore are seen to be undesirable:

Exotic motor vehicles i.e. Lamborghini, Lotus All assets that will be over 12 years old at the end of the finance

term. Trailers/stock trailers Taxis/Hire cars Non-Australian compliant vehicles i.e. left hand drive Grey Plate vehicles and repairable write offs Personal Water Craft e.g. Jet Skis or Wave Runners Sailboats and Yachts (non-motorised) Powered marine vessels used for commercial purposes i.e.

Commercial fishing, Sightseeing etc. Custom made boats and private boat purchases Prime Movers & Fork Lifts Plant & Equipment Coaches (Buses)

Note:The deal must be referred to and approved by Level 1-2 CAL holder.When loading the deal in Sovereign and your goods are not listed in the "classification type" dropdown box, you must choose "Other" vehicle.

Private Sales

Private Sales are more commonly used by customers who are purchasing a vehicle from a non Licensed Motor Car Trader (LMCT). They can also be used when someone not on the original loan wants to take on the debt. Commercial Finance Administration (CFA) takes extra precaution and performs detailed checks to ensure that the car is in good condition, and that clear title will pass.

Documentation and Settlement Requirements Requirements that areMandatory

Requirements that maybe Waived




Registration Papers YesCopy of Registration Transfer Papers NoEncumbrance Search Yes Inspection Report completed by a staff member or by a state based motor club or LMCT

Yes

Tax invoice – from GST registered/invoice from non GST registered

Yes

Settlement funds are paid by direct credit to a recognised financial institution, subject to discharge of any encumbrance

Yes

If encumbered - Payout letter which confirms vehicle identifiers

Yes

If encumbered for consumer products payout letter & invoice from the customer

Yes

Statutory Declaration from the Vendor No

If the supplier is a Company – undertake PPSR searches to confirm secured details against Company name

Yes

Note:An Inspection report can be waived at the discretion of either the State Manager or the Operations Managers if it is a refinance of another finance companies balloon payment.

Sale and Leaseback

Sale and Leaseback/hire are done when the customer has recently purchased goods, and rather than bearing the full cost of the purchase, decides to finance the goods.

Documentation and Settlement Requirements Requirements that are Mandatory

Proof of purchase – confirm that customer has paid for the goods and clear title has passed to them

Yes

Proof of original purchase through dealers/suppliers tax invoice

Yes

Tax invoice from GST registered or invoice from non GST registered

Yes

Registration papers Yes


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Inspection Report completed by a staff member or by a state based motor club or LMCT

Yes

Tax invoice – from GST registered or invoice from non GST registered

Yes

Goods must be purchased within last 3 months(Refer to Third Party Channels - Novated Leasing for details)

Yes

Amount financed is not to exceed the current recommended fair market value

Yes

Encumbrance check to be done on the day to confirm that no interest has been lodged

Yes

Business search completed to confirm customers/purchasers

Yes

Statutory Declaration Yes

If the supplier is a Company – undertake PPSR searches to confirm secured details against Company name

Yes

Note:CFA are to refer any deal that does not meet the above criteria table to a Level 1-4 CAL holder for approval.Such deals are to be treated as exceptions to policy and are not applicable to Novated Leases.

Guarantors

This policy covers the following topic:Suitable Guarantors criteria

Suitable Guarantors criteria

Suitable guarantors must meet all of the following: Have tangible assets in the form of Real Estate Sign an Assets and Liabilities Statement Sign a Privacy Disclosure Statement Have a clear credit bureau file

Regulated loans




All borrowers/co-borrowers must meet serviceability/bureau requirements, under responsible lending criteria independent of the guarantor.

A guarantor can be added to a loan to provide application support in appropriate circumstances; however Auto Finance cannot use a Guarantor's income when assessing the serviceability of a loan.

Unregulated Loans Individual borrowers – Guarantors must have tangible assets in the

form of real estate Companies/Other borrowers i.e. incorporated, non profit

organisations - Director/individual shareholder guarantees will not be required for an incorporated and Limited Company facility

Release or Substitution of Guarantors A "Deed of Release" document must be completed for the Release

or Substitution of Guarantors it must also be referred to a CAL holder for assessment and approval.

There is no requirement to rewrite the facility contract; the contract will remain as is.For all other entities there is to be no waiver of directors / individual shareholders guarantees unless the full debt is guaranteed by a minimum of one person.

Note:Automotive Finance Level 1-4 CAL holders may consider an exception to these criteria as an exception to policy.

End Policy — General Underwriting Standards




Non Residents Policy

Professionals, who do not hold permanent residency in Australia may be considered for finance approval up to $100k, provided that:

Finance term is not to exceed Visa or not to exceed duration of business sponsorship or contract

Visa must have a minimum of 2 years left before expiration Eligibility is restricted to holders of a valid Corporate business and

Government sponsored visas Professional occupations may include but are not limited to:

Foreign Doctors Corporate sponsored Multi national companies Airline pilots Contract workers, such as specialist engineers or miners,

and similar professionals Copy of visa must be supplied and checked including verification of

valid sub class and no imposing restrictions where applicable (refer www.immi.gov.au).

Evidence of appropriate drivers license is held i.e. must not be foreign or international drivers license by virtue of intent to stay in country more than 3 months unless specifically allowed by your respective State Licensing body for insurance purposes.

No more than 80% of the book value of the vehicle is financed Applicant must have a confirmable fixed billing address Payment via direct debit is preferred Subject to meeting all other standard credit criteria

Note:Automotive Finance CAL holders 1-4 may consider any exceptions to these criteria as an exception to policy.

End Policy — Non Residents Policy




Serviceability (Capacity)

This policy covers the following topics:Consumer IncomeWage/Payment RatioBusiness IncomeAcceptable Business Income and Weightings

Consumer Income

Automotive Finance has a number of obligations to consider when approving customers outside our standard serviceability guidelines.The primary obligations as a responsible lender under NCCP, is that, we will obtain enough financial information to satisfy ourselves that a debtor will be able to meet repayments and repay the facility which is to be provided without hardship. Applicants must receive an acceptable minimum income from a verifiable source. Receipt of income is to be on a regular basis. Regular is considered to be an established or confirmed cycle e.g. weekly, fortnightly or monthly.

Wage/Payment Ratio

The ratio of an applicant's Net Income to Total Commitments which includes other commitments such as other loans and regular payments and living expenses must be greater than or equal to , in order to pass this rule. If this rule is failed then the application must be referred for manual credit assessment. Mitigation of expensesIf the customer has failed the rule then the assessor can choose to review the customer’s living expenses.This is done by checking whether some of the customer's expenses are shared with a spouse/de facto.Common Debt Reducers.A common debt reducer (CDR) is a person who is not an applicant on the finance application but shares common debts and/or commitments with one or more of the borrowers. These debts can include living expenses, Mortgage repayments, Rent, or other loan and credit card debts.A CDR is required when the applicant cannot meet the proposed loan commitments and 100% of any shared debt has been included in applicant’s expenses.


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The common debt reducer must be a spouse/partner of the applicant.If a CDR (spouse/partner) is required, confirmation of income must be requested and documentation acceptable.A servicing assessment can be done with the CDR’s income to mitigate the expenses of the shared debts. This is based on the percentage of the total household income that the CDR brings in. I.e. If the Applicant earns $2k a month and the CDR earns $2k a month, based on the percentage of the applicant’s income (50%) we can do a servicing assessment attributing 50% of the shared expenses.

Mitigation of expenses is limited to a maximum of 50%

Note:The applicant’s finance is considered a sole expense, and the applicant must be able to service 100% of the current finance repayments and their calculated share of the shared liabilities.If the ratio of the customer's monthly salary to their now reduced expenses is greater than or equal to then the application is considered to have met serviceability.The formula used in the calculation of serviceability is as follows:Customer Commitment Ratio (CCR) = (Net Monthly Income minus Living expenses) / Total Monthly CommitmentsDetails of CCR Components-Total Monthly Commitments is inclusive of Monthly Expenses + Monthly instalment amountThe Monthly Instalment amount is the Total Amount Payable minus GST exclusive Residual Balloon AmountA customer planning on taking a loan with a balloon amount must have a plan for the repayment of the balloon at the end of the term. Enquiries should be made with the customer prior to taking out the loan.Term in monthsThe Total Amount Payable consists of the amount Financed + Interest + Total Maintenance Fee + Total Rental Duty Payable + Total Rental GST PayableThe Amount Financed should also include all types of financed Insurance. To pass capacity, the following rules apply: Single Applicants - Primary applicant: must pass capacityJoint Applicants - Primary and co-borrower must pass capacity test jointly. All applicants are jointly and severally liable for the debt.


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Acceptable income and Income Weightings - Consumer

Income Type DescriptionSalary FT/PT Wage / Salary – PAYGSalary Casual Wage / Salary - PAYGFamily Tax Benefit Family Tax benefit Part A &

Part B payments from C/LinkInvestments Interest income or Dividend

from shares, trusts etc

Other Job Income from second (third) jobOvertime Overtime and allowances for

working hours in addition to Standard Roster

Pension Retirement income from superannuation or Govt Aged/Widows/Disability Support pension

Retired Pension Retired Self funded pension Overseas Pension

Rental Income Income Paid from Investment properties

Maintenance Income received from ex partner

Commission Sales commissionBonus Salary annuity

Note: **** Please refer below for full details of income weightings.All other income sources are Unacceptable

Overtime/Shift Allowance

but only where Overtime / Shift Allowance is a condition of employment, as confirmed by the employer at the time of income/employment verification. i.e. Emergency Services – Fireman, Ambulance & Police and Essential Services i.e. Nursing, Correctional Officers

Average weekly figure to be used with a minimum length of overtime/shift allowance being received - 6 months plus.

A minimum of 3 or 4 pay advices should be produced to confirm continuity of overtime payments.


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Where overtime and shift allowance are not a condition of employment may be used provided payments can be evidenced over a minimum of 3 payslips.

Casual Employment

If the applicant has worked more than 12 months with continuous employment, 80% of income can be used for serviceability calculations.

Evidence must be provided to support length of employment, YTD figures.

If the applicant has been in casual employment less than 12 months, only 50% of income can be used for serviceability calculations.

100% of income may be used if the application is mitigated by client providing a 20% deposit or they have 20% equity in their home.

Note:Auto Finance CAL holders 1-4 may approve 100% of income being used to demonstrate serviceability where a borrower works on a casual basis provided consistent regular hours are confirmed.

Maintenance

Maintenance payments may only be considered when: Dependants are under 10 years old at origination of the facility

And Payment is included by an applicant as supplementary income

only Verification is to be via Bank statements (6 month period) with a

detailed narrative that confirms payment from Child Support Agency.

Commission

Where Commission is a condition of employment, may be used provided payments can be evidenced over a

minimum of 3 payslips.

Employment by Family members

If we are made aware during the application process that the applicant is employed by a family member or through a friend's company then income


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verification will follow standard PAYG base income policies, plus one of the following supporting documents:

Account transaction listing generated by a St.George system covering the last 2 pay periods, Or

Letter from Accountant, Or

Bank statements/passbook covering the last 2 pay periods, Or

Latest tax return and ATO Notice of assessment (not older than 11 months)

Contractor Income

Dependent ContractorFixed term salaried employees

With at least 12 months stability within the same profession and tax is paid by the employer

Independent ContractorEmployed under a commercial contract for a fixed term

With at least 12 months stability within same profession and tax is paid by the employee.

Business Income

The ratio of an applicant's Net Income to Total Commitments must be greater than or equal to , in order to pass this rule. The formula used in the calculation of serviceability is as follows:CCR = (Net Monthly Income minus Living expenses) / Total Monthly CommitmentsDetails of CCR ComponentsTotal Monthly Commitments is inclusive of Monthly Expenses + the Monthly instalment amountMonthly Instalment amount is the Total Amount Payable minus GST exclusive Residual Balloon AmountTerms in MonthsTotal Amount Payable consists of the Amount Financed + Interest + Total Maintenance Fee + Total Rental Duty Payable + Total Rental GST PayableAmount Financed should also include all types of financed Insurance. To pass capacity, the following rules apply:


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Single Applicants - Primary applicant: must pass capacityJoint Applicants - Primary and co-borrower must pass capacity test jointly. Corporate applications – Applicant and Guarantor consolidated incomes must pass capacity.

Business income requirements

Need evidence of business income which must be no more than 18 months old

Need to provide the most recent full year Statutory Financial Statements (balance sheet and profit & loss statement)Or

Most recent Taxation returns for applicant and guarantor (if applicable)Or

Most recent Notice of Assessment, issued by the ATO where a refund is due or where an amendment is made to previously lodged returnsOr

A copy/printout of the ATO's Tax Agent Portal confirming lodgement of the company returns and the tax payable

The client's ability to meet current and potential obligations must be evident for the term of the finance.

Note: In the absence of evidence of the aboveCAL holders 1-6 may accept the following:

Current Management accountsOr

Serviceability support by an external accountant Where Statutory Financial Statements are not readily available

A signed Income & Expenses (I&E) declarationAnd/or

Serviceability support by an external accountant

Note:




For terms outside the above, all deals must be referred to a CAL holder 1-4 for approval

Business - applicant self employed 2 years

Confirmation of income and expenses may be completed using Income & Expenses (I&E) Declaration only, if the customer meets the following criteria:

Applicant must have been in business for greater than 2 years Applicant must have a valid Business Registration and ABN Application must pass score cut offs Applicant must meet all existing and proposed commitments Applicant must have an acceptable Credit Bureau File Applicant must have a clear Fraud file Signed I&E must include all income and expense details (this

information must be transferred into Sovereign) Applicant must be asset backed with real estate holdings (may

include Guarantor)Or

Must have minimum of 20% equity in the vehicle

Business- applicant self employed < 2 years

Confirmation of income and expenses is to be completed using Income & Expenses (I&E) Declaration, if the customer meets the following criteria:

Applicant must have a valid Business Registration and ABN Applicant must have a clear Credit Bureau File Application must pass score cut offs

Applicant must have a Clear fraud file Applicant must meet all existing and proposed commitments Signed I&E must include all income and expense details (this

information must be transferred into Sovereign) Applicant must have evidence of property ownership (may include

Guarantor) confirmed via rates notice etc And

Must have 20% equity by way of cash deposit or trade-in.

Note:




Acceptance of an I&E Self Declaration outside this policy can only be approved by a Level 1-4 CAL holder.

Serviceability Threshold :

Regulated finance: All deals must be referred to Level 1-4 CAL holder where the

application is not a Super Pass.Dealer/Lender must update Sovereign with customer's financial details and mitigations for approval and resubmit

Unregulated finance: Self Employed with a Self Declaration (I&E) must be referred to a

Level 1-6 CAL holderDealer/Lender must update Sovereign with customer's financial details and mitigations for approval and resubmit

Self Employed without a Self Declaration must be referred to a Level 1-4 CAL holderDealer/Lender must update Sovereign with customer's financial details and mitigations for approval and resubmit

Not Self Employed – A Self Declaration (I&E) cannot be used for these customers they must be referred to a Level 1-4 CAL holder.Dealer/Lender must update Sovereign with customer's financial details and mitigations for approval and resubmit

Note:No applications for finance are to be settled with $1.00 in the income details section of Sovereign.(With the exception of balloon/residual value rollovers and staff Novated leases)

Acceptable Business Income and Weightings

Income Type Description WeightingSalary Self Employed

Rental income Income Paid from Investment properties

Income from investment property located in the Inner city

Investment income

Interest income or


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Dividends from shares, Trusts etc

Other Other Income

End Policy — Serviceability (Capacity)


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Tax file numbers

Under the Tax File Number Guidelines issued by the Privacy Commissioner, it is prescribed that:

“Tax File Number information shall only be requested or collected from individuals for the purpose of carrying out responsibilities under taxation law”

The Privacy Commissioner has also stated that the guidelines are not satisfied unless the tax file number is physically removed from the file immediately after the receipt of a tax return (or other document) bearing tax file number information.Therefore, Tax File Numbers shown on copies of taxation returns (or any other documents) to be retained by Auto Finance must be removed or blanked out before retaining the document on the loan file.

End Policy — Tax file numbers




Credit Bureau checks

Sovereign will obtain a Consumer Credit File for consumer applicants and a Consumer and Commercial file report from the credit bureau on each Automotive Finance business applicant. Enquiries are done against the Veda Advantage (formerly Baycorp) databases.When an application for finance is referred to an Acceptance Officer for a manual assessment, the Acceptance officer/Dealer must contact the customer and confirm the accuracy of the bureau report in the following instances.Where an applicant , all enquiries listed on their corresponding bureau report should be investigated via the introducer for potential inclusion in the capacity assessment.

All credit bureau investigation findings are to be documented in Sovereign

When there are 5 or more enquiries for Unsecured Finance (i.e. Credit Card/Personal Loan or Line of Credit) in the past 3 months on an applicant's credit bureau file report and the applicant

, the Acceptance Manager/Officer assessing the deal must check and investigate each enquiry.

All credit bureau investigation findings must be documented in Sovereign,

Privacy Act consents must be obtained from all applicants on whom a credit report is called.

Note:If any changes are made to the capacity details as a result of enquiries made to the customer re bureau enquiries, the deal must be resubmitted in Sovereign.

End Policy — Credit Bureau checks


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Credit Reference checks

The National Credit Reference scheme supports a prompt and accurate exchange of credit reference information between lenders. As a member (with an Australian Finance Conference company code which is changed on a quarterly basis), we are authorised to obtain a credit reference on an individual’s personal credit account held with an institution if they are also a member. This can be done after confirming we hold the customers authority by way of a signed privacy act authority and quoting our number for this month.Credit reference checks are used to determine previous lending history performance and possibly undisclosed debt. After examining the Credit Bureau, the branch may identify that the customer has enquiries that are checkable credit. The Branch can verify the repayment history of either a current or a previously held loan with institutions on the National Credit Reference List. While the ratings given by each of the Finance references may not be standardised - there is enough leeway given when obtaining a reference to seek further details.i.e. Esanda may call an account slow with 3 payments over 14 days overdue, but the acceptance officer can ask when those payments occurred and use that information to assist their decision.Credit Reference checks are undertaken in addition to Credit Bureau checks where necessary.

All findings must be recorded in Sovereign

Note:A Level 1-5 CAL holder may:

Waive credit reference checks and bank statements and loan statements for an existing "A" rated customer except

Where adverse credit listings on mandatory Credit bureau file reports are found I.e. Defaults/Judgements, these must be investigated & findings recorded in Sovereign.

Definition of Ratings = Average days in arrears calculated over the current life of the loan.

LowerLimit

Upper Limit

Grade




0.00 7.99 A 8.00 14.99 B15.00 28.99 C29.00 99,999.00 D

Non- accrual/At Risk/Repo/Write-off

E

End Policy — Credit Reference Checks




Adverse Bureau

Care is to be taken when a credit bureau file shows adverse bureau history, Defaults, Judgements, Arrears or Bankruptcy.Any defaults and judgments on file are to be thoroughly investigated and a satisfactory explanation must be entered in Sovereign and kept on file. Any unpaid default must be referred with supporting mitigations to a Level 1-4 CAL holder. The Credit Bureau report can confirm if the debt is 'paid' or 'finalised' and current usage of ‘PD’ signifies ‘P’ayment ‘D’efault.

End Policy — Adverse Bureau




Score Card Cut offs

Consumer and Business Auto Finance applications that fail Sovereign score cut offs must be referred to an appropriate level CAL holder for further review.

Individual with Consumer Products (ICP)

SCORE OUTCOME REQUIREMENTMin Max Score OutcomeLo 555 Refer556+ Hi PassCAL SCORE THRESHOLDSMin Max Workflow TextLo <478 CAL Level 1/2 required with mitigation478 <544 CAL Level 1/2/3 required544 <556 CAL Level 3/4 required556 <594 Pass594 Hi Super Pass

Individual with Business Products (IBP)

SCORE OUTCOME REQUIREMENTMin Max Score OutcomeLo 557 Refer558 Hi Pass

CAL SCORE THRESHOLDSMin Max Workflow TextLo <478 CAL Level 1/2 required with mitigation478 <544 CAL Level 1/2/3 required544 <558 CAL Level 3/4 required558 <590 Pass590 Hi Super Pass

End Policy — Score Card Cut offs




Approvals

Approvals are only valid for 30 days. Applications beyond 30 days must be re-submitted and new loan documents printed.Automotive Finance approvals are communicated to the dealer for dealer-introduced deals. The Dealer then advises the client that their finance has been approved pending verification of the documentation. If any additional documentation is required the client is to be contacted and advised. Finance approvals via the Contact Centre are communicated directly to the applicant via their preferred contact method.

Note:Level 1-4 CAL holder may approve an extension beyond 30 days however no longer than 90 days.

Auto Approval Overrides

A finance application with any of the following characteristics must be referred to a Level 1-6 CAL holder regardless of the Automatic Approval. The following list does not include categories where a referral to an Acceptance Manager/Officer is automated by Sovereign.

.

Conditional approvals

Acceptance Manager/Officer may approve finance subject to criteria being met. Some conditions need to be verified by the assessment officers before going to CFA whilst others may be verified by CFA. Conditions may be things which strengthen the finance request and reduce the risk to Auto Finance or verify the applicant’s financial position.


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Approval conditions requiring an Acceptance Manager/Officer's review must be placed in "pending" in the Sovereign system. Approval conditions can be left for verifying at the settlements stage and can be approved as a "conditional approval" Common conditions are but not limited to:

Proof of "A" rated credit A minimum deposit amount A maximum LVR/TAF on a proposed vehicle to be financed Adjustment of term/loan structure to build equity or improve capacity

position. Proof of savings Rates Notice Proof of spouses income (mitigating expenses)

Note:When an application for finance has been conditionally approved by an Acceptance Manager/Officer and the conditions are not met, the application must be referred back to the approving Acceptance Manager/Officer.

End Policy — Approvals




Referred Applications

Applications maybe system referred to an Acceptance Manage/Officer for further review i.e.

If they fail to meet credit policy. If the finance application is from a customer group with existing

SGB/WBC commercial exposure, further support should be sought from the customer's relationship manager or a Credit Manager.

End Policy — Referred Applications




Declined Applications

When an application for finance is declined wholly due to an adverse credit bureau report, Auto Finance is required to provide written notification to the applicant.All other declined applicants are advised by the channel that received the application,

Note:Do not enclose a copy of the credit bureau report,Refer to Appendix b and c

End Policy — Declined Applications




(3rd party) Broker introduced business

Arrangements with 3rd party originators are considered non-standard business. All such arrangements are to be done under approved third party specific dealer codes and must be suitably documented using the “Third Party originator Agreement”. Vehicles are required to be sourced from licensed motor dealers who, unless previously agreed otherwise, are to be paid directly by Auto Finance.The three sources of 3rd party business are originated through:

1. Novated IntroducersThe introducers are companies who arrange and maintain Novated Leases for employees of companies or government bodies they have ongoing arrangements with. The employee applies through the Novated introducer and if approved the Lease is funded by Auto Finance while the Novated introducer manages the account until it is finalised. This generally includes all correspondence, maintenance/service, finance payment arrangements and arrears management.

2. Principal and Agency (P&A) arrangementsThere are a number of P&A originators (such as fleet providers) who have arrangements with Auto Finance to offer finance directly to customers in their own name. Auto Finance funds the finance contract and maintains it on their balance sheet while the P&A originator manages the relationship with the customer until the conclusion of the contract. Depending on the arrangement the 3rd party may or may not disclose to the customer that the finance is ultimately coming from St.George Auto Finance

3. BrokersThere are a small number of Brokers accredited to originate business through Automotive Finance. They complete the application and deal directly with the customer until the finance contract is settled and are paid brokerage for introducing the deal. Once the contract is in operation the customer deals directly with St.George Auto Finance.




Important:All third party originated business is restricted to Business /non regulated products. ie. Consumer Finance is not allowed. Any approval to offer regulated products (Consumer Finance) is subject to the appropriate due diligence, ASIC licensing and completion of the St.George Auto NCCP accreditation.

End Policy — (3rd party) Broker introduced business




Privacy Policy

Privacy agreements are valid for one application only. To allow for late delivery of vehicles, if there are no significant changes to the application, we will accept the original signed privacy agreement for an Auto Finance loan up to 6 months old as at the date of compliance checking. In addition the privacy date must be on or before the date of the first submission in Sovereign (Workflow 1). Any privacy forms that are older than 6 months may be approved on a case by case basis by an Acceptance Manager and settlements should refer these to the branch.

End Policy — Privacy Policy




Security Requirements

This policy covers the following topics:Valuation of SecurityLoan to Value Ratio (LVR) FormulaSecured Documentation RequirementsComprehensive insuranceOptional Insurance Table

Valuation of Security

The valuation of all vehicles/marine craft etc to be taken as security must be determined by reference to a current valuation (not more than 30 days old). Valuations for motor vehicles are made by reference to a recognised Dealer Guide.

Loan to Value Ratio (LVR) Formula

All valuations for vehicles/marine craft etc to be taken as security by Automotive Finance must be undertaken in accordance with the following formula:

Valuations for all ‘new’ vehicles, must be made with reference to a recognised Dealer GuideValuations for all ‘used’ vehicles must be made with reference to a recognised Dealer Guide "Retail Value” value.LVR may include insurances, Brokerage, Origination fees, non taxables and accessories.For Dealer Purchased Vehicles - where optional extras have been included, they must appear on dealer invoices. Demonstration models (“demos”) with odometer confirming mileage is under 500kms are to be classified as "new vehicles" and should be submitted into a recognised Dealer Guide accordingly.Automotive Finance’s interest in all motor vehicles/marine craft etc taken as security is to be lodged with the PPS register.


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Note:Level 1-4 CAL holders may consider any exceptions to these criteria as an exception to policy.

Secured Documentation Requirements

Documentation required if purchasing from:

Dealer Refinance internal

Refinance external

Private Sale

Signed Finance Application Yes Yes Yes Yes

Business Purpose Declaration Yes Yes Yes Yes

Evidence of Income Yes Yes (refer Refinance Rollovers

Yes Yes

Privacy Declaration Form Yes Yes Yes Yes

KYC Verification –secondary ID Yes Yes Yes No

Valid driver’s license or Learners permit

Yes Yes Yes Yes

Current Registration Papers in Applicants/Sellers Name

No No Yes Yes

Signed Declaration and Documents instruction Checklist

Yes Yes Yes Yes

Invoice/Tax Invoice Yes No Yes orPayout letter

Yes orPayout Letter

Inspection Report N/A N/A N/A Yes

12 month full Comprehensive Insurance cover with St.George Finance noted on policy as Interested party

Yes Waived for A rated Retention loans

Yes Yes

Marine Craft Dealer Invoice Yes No N/A N/A

12 month Comprehensive Insurance for Marine Craft, if included in loan, cover note required

Yes N/A N/A N/A




Comprehensive insurance

The secured asset is required to be covered by comprehensive insurance for the duration of the loan agreement.The first year’s comprehensive insurance premium may be financed as part of the original loan.Otherwise confirmation will be required by way of

A copy of a cover note, or Fully paid comprehensive insurance, or Insurance confirmation form filled in by the dealership

Note:Pay-by-month insurance cannot be financed by this loan.

Optional Insurance Table

The below table is a list of insurance products that can be included in the first year of loan financed amount.Type Consumer Finance

leaseHire Purchase

Goods Loan

Consumer Credit Insurance - CCI

Yes N/A N/A N/A

Business Credit Insurance - BCI

N/A Yes Yes Yes

Gap/Shortfall Insurance

Yes Yes Yes Yes

Mechanical/Warranty Yes Yes Yes Yes

Trauma/Death Yes Yes Yes Yes

Novated Lease Consumer Credit Insurance -CCI

N/A Yes N/A N/A

End Policy — Security Requirements




Security Interests

When St.George Automotive Finance provides finance for the purchase of goods a security interest is registered with the Personal Property Security register. This is to ensure that in the event of a customer not fulfilling their obligations under the contract we have the ability to repossess and resell the goods to recover some or all of the outstanding debt.

PPSR (Personal Property Securities Register)

The Personal Property Securities Register holds information about ‘personal property’* that is held as security for finance from a credit provider.Automotive Finance register all goods financed against this register and where the goods are identifiable by serial number (e.g.: VIN for cars or HIN for boats etc…) must be registered by this identifier. This is known as a Specific Security Agreement (SSA) and incurs a registration fee that is passed on to the customer. SSA registrations expire after 7 years but can be extended by amending the existing registration.

Searches can also be made on the PPSR to determine whether specific goods are held as security or an entity has security interests over it (similar to an ASIC charge these are called a General Security Agreement).

If the finance is not funding the purchase of the goods or the customer took possession of the goods more than 14 days before the finance settled, Automotive Finance need to do a search on the PPSR to establish whether there are existing General Security Agreements (GSA) against the borrower which would encompass the goods we are financing. If there are, a release needs to be obtained from the company holding the GSA to guarantee that the security interest we register will take priority over theirs.

*Personal property is any form of property other than land or buildings and fixtures, which form part of that land. It can include tangibles (e.g. cars), and intangibles (e.g. intellectual properties).

End Policy — Security Interests




Rollovers

Borrower’s wishing to ‘Rollover’ (Refinance) their Balloon/Residual Value on an existing St.George Automotive Finance facility can qualify for a streamlined approval process (where income verification is not required) when:

The repayments/rentals on the proposed refinance will be equal to or less than their existing repayments/rentals (for facilities regulated under NCCP).

or The repayments/rentals on the proposed refinance will not be more

than $250 higher than their existing monthly repayments/rentals (for facilities not regulated under NCCP).

Automatic approvals in such instances are also subject to: A St.George customer value rating of “A” or repayments have not

been missed for at least the past 12 months. Borrower confirms no material adverse changes (financial or

otherwise). Borrower has signed a declaration that there have been no adverse

changes to their financial circumstances. (Only for facilities regulated under NCCP).

Acceptable credit reference report held.

Note:The requirement for the borrower to produce Insurance and Registration documents can be waived if the above criteria are met. Any deal that falls outside the above requirements must be referred to a Level 1-6 Cal Holder.

End Policy — Rollovers




Replacement Finance

Non-NCCP (Unregulated) – Business ProductsBusiness customers seeking a replacement vehicle either prior to expiry, or at expiry of their existing facility or within 6 month of finalising the facility are eligible for a streamlined approval process where income verification is not required when:

The repayments/rentals on the proposed refinance will not be more than $250 higher than their existing (or recently finalised) monthly repayments/rentals.

St.George customer value rating is “A” or repayments have not been missed for at least past 12 months.

Borrower confirms no material adverse changes (financial or otherwise).

Acceptable credit reference report held

Where that facility is not held with St.George Automotive Finance, the above checks must be completed through a reference check with the previous financier. The deal is subject to normal credit criteria and acheck must also confirm that the structure of the borrowers proposed facility is identical to the previous facility.

NCCP (Regulated) – Consumer LoansAll consumer loans must be processed as a full application and are not eligible for a streamlined approval process as Responsible Lending obligations must be met.

Note:These applications are to be referred to the appropriate CAL Holder (refer to CAL exclusions table).

End Policy — Replacement Finance




Substitution of Security

Substitution of securities is an exchange of equivalent goods (same or better) without an interruption to the loan repayments or the outstanding balance or the term of the loan. Credit approval is required for all substitution of security requests and only permitted in the following circumstances:

Replacement as a result of insurance claim (e.g. vehicle written off/and or replaced)

Replacement due to 'lemon goods' settlement (e.g. persistent faults on a new vehicle)

Evidence of this may be provided by the Insurance Company or a Tax Invoice from a dealership with an explanation. All substitutions approved are only based on a “like for like” replacement security and a fee is charged. The client initiates contact with the Call Centre, Originator/Relationship Manager or Acceptance Team, who will prepare the standard documentation to be sent out to the customer for signing after all general investigations have been made. Once the documents are correctly executed by the customer and returned to the area that prepared the documents, they are then sent to the CFA Team. The CFA officer will review and update the customer security details in Sovereign Core and register the new security interest in PPSR.

End Policy — Substitution of Security




Assignments and Novations

Loans and leases may be novated to a new client (borrower or lessee as applicable).

Assignments and novations, however, are not permitted for Consumer Finance. Consumer Finance loans require that a new loan is entered into, this is to ensure that Auto Finance is meeting all responsible lending obligations under the NCCP Act that apply to Consumer Finance.

Where the customer owns title to the asset, the process for an assignment of the loan and goods security will involve transferring the ownership of the vehicle (as security) to the new borrower as well as entering into relevant assignment documentation. This can be done at any time during the loan.

Leases and hire purchase agreements may be novated to a new client by executing a novation agreement with the existing client and the new client. Under a novation agreement, the parties may agree that some or all rights and obligations of the finance contract are assumed by the new client. In some circumstances under a novated car lease between an employee and an employer, the parties may agree for the lease to be novated back to the employee.

All assignments and novations require an approval by a credit assessment officer with justification and a fee is charged for preparation of the documentation

The first point of contact for the client will often be the Originator or the Branch, once all general investigations have been made (and provided it is not Consumer Finance), they will prepare the standard documentation to be sent out to the client for signing.Once the documents are correctly executed by the client and returned to the Originator, these will be sent to CFA.A CFA officer will review the documents and amend the customer details in Sovereign Core.

Releases

If one of the borrowers wishes to be released from a loan contract, Automotive Finance will agree, provided the remaining borrower agrees to the request and meets normal credit serviceability guidelines.




Guarantor registration details would need to be amended for registration of security interest for a commercial loan.

End Policy — Assignments and Novations




Variations

Variations are generally not permitted. When variations are made as a result of a disaster/drought relief package, a re-assessment of the credit aspects and confirmation of the ongoing viability of the customer is required. When variations are due to the customer experiencing financial hardship, the request must meet the Hardship Policy guidelines.Normal recovery action is to commence unless arrangement is made to rewrite the deal.

Note:Variations due to disaster/drought relief can only be approved by the appropriate CAL holder.

End Policy — Variations




Termination or expiry

Commercial Hire Purchase or Goods Loan: A transaction can be terminated when:

The customer is in default And/Or

The customer requests early termination of the agreement. Obtain a payout figure from Automotive Finance Operations including overdue interest or variation to the discount rate.

Lease: Lease documentation requires the lessee to return the goods to

St.George Automotive Finance and pay the residual value on expiry. The goods are then sold and the customer is advised of any funds due or payable.

Note:The lessee is not to be advised (explicitly or implicitly) that they have the right to purchase the goods for the residual value because this can contravene the taxation status of the lease transaction.

End Policy — Termination or expiry




Extensions

Refer to Hardship section. There are no circumstances that would require the extension of a loan except for financial difficulty or like circumstances.

End Policy — Extensions




Lease Post Maturity Payments

Inertia or Post Maturity payment rentals for leases occur when a lease is not paid out in time then rental repayments may continue until the residual or any other amount owing under the lease is paid and the goods are returned.

End Policy — Lease Post Maturity Payments




Third Party Channels - Novated Leasing

This policy covers the following topics:IntroductionEligible goodsApplicant EligibilityEligible Sales ChannelsCredit Matrix ApprovalsEligible Novated Lease optionsNon Residents PolicyNovated Lease introducersServiceability (Capacity: CCR)InsuranceDocumentation Requirements

Introduction

Novated leases are a three-way agreement between borrower (the employee), their employer and a financier providing the employee with a car for their own use.The employee leases a motor vehicle of their choice from the financier. The lease is novated to the employer for the period of the employee’s employment.It is now the employer's responsibility to ensure the monthly lease payments are paid to the financier out of the employee's gross salary. The liability for insurance and residual value of the car usually remains with the employee.

Eligible goods include

DescriptionMotor Car New Motor Car UsedOther Motor VehicleCommercial Vehicles less than 1 tonne

Applicant Eligibility

Novated Leases are available to: Single applicants who




Are a citizen or a permanent resident of Australia or New ZealandAnd

Who currently reside at a fixed Australian addressOr

Holds a valid business sponsored Visa (Government & Corporate)(Refer to Non Residents policy for full particulars)And

Meets the following credit criteria:

Credit Criteria Minimum requirement

Employment Government Corporate business

Credit Bureau Check No Defaults, Judgements, Bankruptcy

Enquiries last 6 months-no more than 4

Total enquiries: no more than 15Financed amount

( if customer is <21 years)CCR (Based on Income &

Expenditure Form)

Note:Any exceptions to the above need to be approved by a Level 1 – 4, CAL holder.

Eligible Sales Channels

Novated Lease introducers are relationship managed by their respective States and are governed by Individual Introducer Agreements.

Credit Matrix Approvals

Credit Matrix approvals will be subject to the following policy requirements: Correctly completed and signed Application and an Income &

Expenditure form Applicant must reside in the Metro or a major regional area Maximum Loan Amount to vehicle ratio 120%


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Vehicles (new and used) only are to be supplied by Franchised New Car Dealerships

Applications that do not meet the minimum requirement will be processed as per current Lending policy guidelines and within the appropriate level of a 1-4 CAL holder.

Eligible Novated Lease options

Finance Options Yes/No

New & Used Vehicles sourced from a registered motor vehicle supplier

Yes

Refinance of Residuals for existing St.George Novated customers

Yes

Refinance of Accounts, including Residuals from other financiers

Yes

Private Sales & Sale on Leaseback (goods must be purchased within the last 3 months except where approval has been granted by the State Manager to enter into an arrangement that allows sale & lease-back for vehicles greater than 3 months old)

Yes

Overview of Novated Lease features and options

Novated Feature Finance options and terms available

Principal Finance amount Minimum $5k

Term available 12-60 months

Age of vehicle at expiration of facility

12 years

Approval Term Valid for 90 days

Residual Balloon LimitsMinimum & Maximum ranges are to be within ATO guidelines


Interest rate Type Fixed

Establishment fee Yes (subject to agreed terms)

Monthly administration fee No




Subject to Payment cycle i.e. weekly, fortnightly or monthly Fees/charges on early termination

Yes

Statement Available on request

Optional extras Insurance Costs After market extras Broker/origination fees Refund of registration and

stamp duty costs for used vehicles.

Non Residents Policy

Professionals, who do not hold permanent residency in Australia may be considered for a Novated Lease approval, provided that:

Lease term is not to exceed Visa or duration of Corporate business/Government sponsorship or contract of employment.

Visa must have a minimum of 2 years left before expiration Eligibility is restricted to holders of a valid Corporate

business/Government sponsored visa. Professional occupations may include but are not limited to:

Foreign doctors Corporate sponsored Multi national companies Airline pilots Contract workers such as specialist engineers or miners, and

similar professionals Copy of visa must be supplied and checked including verification of

valid sub class and no imposing restrictions where applicable (refer www.immi.gov.au).

Evidence of appropriate drivers license is held i.e. must not be foreign or international drivers license by virtue of intent to stay in country more than 3 months unless specifically allowed by your respective State Licensing body) for insurance purposes.

Minimum score card cut off is met (note this will be impacted by duration of time spent in current employment and residency)

All other standard credit policy criteria are to apply.




Automotive Finance CAL holders 1-4 may consider any exceptions to these criteria as an exception to policy

Novated Lease introducers

Also manage: The account Payment arrangements All correspondence Customer Service Arrears Management Communication to St.George where the customer becomes

responsible for future lease payments. Leases are commonly structured two payments in arrears to allow for any delays in the start up administration of the arrangement.

Serviceability (Capacity: CCR)

Capacity is determined by a (I&E) self declaration. The ratio of an applicant's self declaration must be greater than or equal to . The formula used in the calculation of serviceability is as follows:CCR = Total Monthly Income / Total Monthly ExpenditureDetails of CCR Components-Total Monthly Income is inclusive of both spouse/defacto incomes.The Monthly Expenditure is inclusive of all monthly expenses + the St.George lease instalment amount as determined by Sovereign.To pass capacity, the following rules apply: Single Applicants - Primary applicant: must pass capacity

Insurance

Payments to insurance companies may be handled by the Introducer directly as per individual agreement.

Insurance TableThe Insurance Table below provides an overview of products that can be included in the Lease financed amount.


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Type Novated Lease

Lease Protection Yes

Comprehensive Yes

Aftermarket Insurances

Yes

Gap/Shortfall Insurance

Yes

Mechanical/Warranty Yes

Trauma/Death Yes

Novated Consumer Credit Insurance -CCI

Yes

Documentation Requirements

Documentation requirements may differ from normal dealer introduced applications as the full application details are taken by the introducer. Variations to the document requirements are as per individual agreements and may include differences in self declarations or income verification.

Documentation RequiredYes/No

ID as per AML identification requirements Yes

Self-declaration as per individual agreement in lieu of income documentation

Yes

Privacy Declaration Form Yes

Contracts Yes

Copy of Novated Agreement signed by Applicant and employer

Yes

Copy of Comprehensive Insurance document Yes

End Policy — Third Party Channels – Novated Leasing




Regulatory Information

National Consumer Credit Protection (NCCP)

Anti - Money Laundering – Counter Terrorism

Privacy Act

Documentation, Terms and Conditions

End Policy — Regulatory Information


Redacted

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Overview of Collection Strategies

This policy covers the following topics:ArrearsRepossession

Arrears

All loans more than 7 days in arrears will be sent a reminder letter. If the loan reaches 15 days in arrears the account is added to the

collections automated dialler and they will begin outbound calls. An arrears fee is also applied

At 32 days in arrears, Sovereign will apply a second arrears fee to the account and if the loan is a consumer loan, a Section 88 notice will be issued. Business Loans will have the relevant notices issued at 45 days. (The notice advises the customer that they are in default and that the asset may be repossessed)

The customer is given ample opportunity to discuss their situation and come to an arrangement with collections before the car is repossessed.

Repossession

After repossession the car is taken to the auction house where the customer has another 21 days to negotiate with St George.

If negotiations fail, the vehicle is then sold at auction and the loan is updated with the sale price offsetting the amount of the loan owed by the customer.

The customer is then liable for any shortfall owing. The shortfall may be written off or sold to a debt collections agency if the customer does not pay.

Commercial Finance Administration (CFA) run and action a 1st payment default report. Weekly arrears reports are reviewed by St.George Auto Finance collections and by the individual Auto Finance Acceptance State Managers.

End Policy — Overview of Collection Strategies




Identity Verification (AML)

In terms of the Commonwealth Government’s Anti-Money Laundering and Counter-Terrorism Act 2006, Auto Finance will need to identify all signatories to a new loan.Once a client has been identified by Auto Finance, they do not need to be re-identified for AML purposes (100 points of identification) for future loans. Noting that Auto Finance still requires a copy of the applicants driving license at deal origination stage to confirm customers identity and that the AML check box in Sovereign will also need to be tickedClients being identified for the first time need to meet the identification standards set down in the Commonwealth Government’s Anti-Money Laundering and Counter-Terrorism Act 2006. Clients and all third party signatories to a loan will need to provide two forms of identification, at least one of which must be a Primary document.

Note:For full details of the current Auto Finance AML requirements, please refer to Sovereign AML/CTF ID Requirements Matrix.

End Polic — Identity Verification (AML)




Hardship

Financial assistance maybe offered to both pre-delinquent and delinquent Consumer and Small Business Auto Finance customers experiencing financial hardship. At the initial contact the customer will be requested to complete a Hardship Request form, when complete this will be referred to Operations Manager Automotive Finance Collections.Financial hardship maybe due to such situations as:

Unemployment Reduced Income

Unemployment

For unemployment to be considered temporary a reasonable assessment must be made, this will be based on the:

Customer’s age Skills Industry Experience Locality.

It is also important that the customer is likely to regain employment to a level similar to their previous employment, in the next 6 months. If a customer has been unsuccessful for 6 consecutive months to find employment, then unemployment should be considered long term, and the customer should be referred to a financial counsellor or considered for long term or permanent collection procedures.

Reduced income

Reduced income may be the result of such reasons as reduced hours, a new lesser paying job, or applicant going on Maternity Leave (Maternity Leave applicants may be offered additional assistance for a maximum term of 6 months if the loan is greater than 12 months old)Loss of business income or revenue for small business, reduced income or revenue may be the result of losing a key contract or supplier. In the majority of cases, we would offer assistance where the loss of the contract/supplier results in an income reduction of 25% or more and where the customer can demonstrate their prospects to recover the lost income/revenue to restore servicing capacity. Hardship assistance for Small Business is to be event driven, i.e. assistance should not be offered where a




start up business has failed due to management incapability or concept uncertainty or failure, as the business cannot demonstrate an ability to recover.Other examples of Hardship are:

Injury or illness (including carer responsibilities) or death of an immediate family member

Separation and divorce Natural disaster Temporary accident / illness

Unanticipated large expense may result from such scenarios as a legal claim against a customer, under non-insurance etc.

Note:Hardship reasons outside of those described above must be referred to either the Auto Finance Operations Collections Manager/State Manager

Depending on the customers’ circumstances, Auto Finance will work within the Financial Hardship Policy and our Responsible Lending framework to offer either immediate or short term assistance solutions to aid customers to maintain their credit contracts with us, or longer term credit solutions such as debt settlement and/or sale of securities.

Note:For full details of the St.George Assist policy please refer to: http://kognotesd2.stgeorge.com.au/RWP/rwpabout.nsf/8de8562cf8f22e224a25637b000f8f7a/bb7f49488b827fbeca257590001f97e1?OpenDocument.

NCCP requirements

The National Credit Code Protection (NCCP) outlines the legal obligations of St.George towards its customers experiencing hardship and/or requiring financial assistance to overcome financial difficulties. It also outlines the legislation regarding the notice to Customers of any changes made to a loan due to hardship. This legislation applies to all consumer regulated loans.

Finance agreement changes on grounds of hardship

General principle A debtor who is unable reasonably, because of illness, unemployment or other reasonable cause, to meet the debtor’s obligations under a credit contract and who reasonably expects to be able to discharge the debtor’s obligations if the terms of the contract were changed may apply to the credit provider for such a change.Changes




An application by a debtor must seek to change the terms of the contract in one of the following ways:

Extending the period of the contract and reducing the amount of each payment due under the contract accordingly (without a change being made to the annual percentage rate or rates);

Postponing during a specified period the dates on which payments are due under the contract (without a change being made to the annual percentage rate or rates);

Extending the period of the contract and postponing during a specified period the dates on which payments are due under the contract (without a change being made to the annual percentage rate or rates).

Credit Provider’s written notice about change to finance agreement If the debtor makes an application for hardship, St.George must, within 21 days of receiving the application, give the debtor a written notice that states whether we agree to the change.If the credit provider does not agree to the change the notice must state:

The name of the approved external resolution scheme of which the credit provider is a member and

The debtors rights under the scheme and The reasons for not agreeing to the change

Notice of change A credit provider that enters into an agreement with the debtor on any such application must, not later than 30 days after the date of the agreement, give to the debtor, and any guarantor under a guarantee related to the contract, a written notice setting out: Particulars of the actual change in the terms of the contract; and

Any information required by the regulations. Under section 74 of the National Credit Code, if the provider does

not change the credit contract in accordance with the application, the debtor may apply to the court to change the terms of the credit contract.

Assistance Eligibility

The following eligibility criteria must be satisfied before a financial assistance solution can be offered under the Financial Hardship Policy, or before an existing assistance solution can be extended:

The Customer has not had a restructure for the same reason for a period of more than 6 months in the last 12 months and




The Customer has not previously had more than two (2) restructures over the life of the facility, or

The Customer has not broken their obligation under any previous restructure arrangement that was granted under Financial Hardship Policy, unless as a result of the customer requesting a variation during the period of assistance

The Customer demonstrates a future commitment and ability to pay but is unable to make up arrears or make payments in the short term. This may be due to temporary financial difficulties as a result of a temporary reduction or loss of income, or of expenses relating to illness, accident, death, separation or divorce;

The Customer has the capacity to meet the ongoing commitments of the restructured loan, or the Customer can detail the expected changes in their circumstances or the financial options they will pursue that will enable them to meet their loan commitments after any assistance period granted has expired and they return to the normal obligations of their loan contract.

For an exception to any of the above criteria the customer’s request for "Hardship" assistance must be referred to Auto Finance Operations Collections Manager/State Manager for approval;

Customers Not Eligible for Assistance

A Customer must not be granted assistance if any of the following applies: The Customer is deceased (except where there are multiple

borrowers and at least 1 borrower is not deceased); The Customer is bankrupt and we do not hold a Trustee approval. The Business Customer is under Administration, Liquidation or

Receivership.

Maximum Assistance Term

The assistance period should be matched to the hardship period anticipated by the customer, within the following bounds:

Up to 6 months with requested documentation for Consumer Customers

Up to 6 months with documentation of financials for Small Business Customers

If it is known by the Customer that their period of financial hardship is expected for a period greater than 6 months, then they may be granted up to 1 year assistance, if they are able to produce documentation to evidence the expected hardship period. Such documentation should include an




An offer of Employment stating the employment start date, or A Doctor’s Certificate stating when the Customer is expected to be

able to return to normal employment, or Stating the expected period of treatment (and therefore period of

associated treatment costs) Other documentation could be such as that obtained from a Legal

Representative stating expected settlement or payment dates.

Note:*Any requests for periods greater than 6 months or for terms outside of those described above must be referred to the Auto Finance Operations Collections Manager/State Manager for approval.

End Policy — Hardship




Accreditation and Education

Refer to Appendix a for details of Acceptance Training

Before Automotive Finance employees can approve a consumer or business lending product they are to be accredited.Accreditation provides evidence that the employee has an understanding of credit product policy and consumer credit legislation.The first stage of becoming accredited is to successfully complete the following training modules:

National Consumer Credit Protection Legislation including Responsible Lending

Anti Money Laundering / Counter terrorism Financing Legislation Privacy and Trade Practices Legislation Products Acceptance Criteria Documentation and Settlement 5 C’s of Credit (e-luminate) Basic Financial Analysis Testing the Water - e-luminate course for Self Employed

The second stage is on the job practical assessment: The candidate will become familiar with the requirements of

Sovereign Global the front end system for deal origination and Sovereign Core that houses settled loans. Sovereign Global utilizes a combination of application, credit bureau

and customer data to evaluate whether an application for credit is approved or declined.

The applicant also requires an understanding of how the application and credit scoring process controls the quantity and quality of new business written.

Key elements within the application process are related to: Risk Serviceability Bureau

The applicant will work under the supervision of an experienced Acceptance Manager and make recommendations on deals. During this period the




Acceptance Manager will provide coaching and assistance as required and will conduct an assessment of the trainees performance.

When sufficient experience has been achieved, (minimum of 50 recorded deals, with 90% of assessment decisions being agreed upon) a written proposal is to be submitted for CAL Accreditation.

A Retail Acceptance CAL Authority is restricted to the Acceptance Manager/Officer concerned and cannot be delegated unless approved by Head of Unsecured Risk for temporary periods of time. I.e. a leave period.

Eligibility

Retail Acceptance CALS are granted to Acceptance Managers/Officers with:

An appropriate level of experience and Who meet the required level of credit education

Managers/officers must have completed the necessary role accreditation training assessments, and any other requirements determined by the accrediting officer. See Appointment below for details of who can appoint managers/officers with a CAL.Managers/Officers granted a Retail Acceptance CAL are to be provided with written confirmation specifying the CAL Level and the authority to which it relates.

CAL Review

All Managers/Officers and their use of their Retail Acceptance CAL are to be reviewed at least annually.

Appointment

Retail Acceptance CAL Authorities are to be granted by Head of FCM & Unsecured Risk Australian Financial Services

Westpac Group in consultation with the State Managers, St.George Auto Finance.

Authorities vary by type and amount and are restricted to the officer concerned.A credit approval limit (CAL) determines the maximum exposure an Auto Finance Acceptance Manager/Officer can approve




Acceptance Managers/ Officers should retain their CAL approval letter with their personal records.

Retail Acceptance CAL Structure & Grid

St.George Automotive Finance Acceptance Staff

Retail CAL Grid $,000's

Authority Level Level 1(AS1)

Level 2 (AS2)

Level 3 (AS3)

Level 4 (AS4)

Level 5 (AS5)

Le (A

Type of Authority

Permanent Permanent Permanent Permanent Permanent Per

No non-compliance of NCCP

X X X X X

Lease/CHP/Consumer Loans only

X X X X X

Risk Grade A - D42

1,000 0.500 0.500 0.150 0.100 0

Bad Debt Write Off Authority

0.001 0.001 Nil Nil Nil

Exclusions and Restrictions

As per credit Policy & Cal Exclusions Table

As per Credit Policy & Cal Exclusions Table




As p Cre Poli Cal Exc Tab

Note:*Collection bad debt write off discretions are delegated by the Head of Loans Management Unit, Australian Banking Risk.

Retail Acceptance CAL Restrictions

Level 1Maximum of $.0.500m per transaction for cars, trucks. caravans and motor homes




Maximum of $0.100m per transaction for plant & equipment for existing StG motor dealers.Maximum of $0.100m per transaction for boats & $0.050m for motor bikes.Maximum OOT $1.000m

Level 2Maximum of $.0.500m per transaction for cars, trucks. caravans and motor homesMaximum of $0.100m per transaction for plant & equipment for existing StG motor dealers.Maximum of $0.100m per transaction for boats & $0.050m for motor bikes.Maximum OOT $0.500m

Level 3 Maximum of $.0.150m per transaction for cars, trucks. caravans and motor homesMaximum of $0.100m per transaction for plant & equipment for existing StG motor dealers.Maximum of $0.30m per transaction for boats & $0.050m for motor bikes.Maximum OOT $0.500m

Level 4Maximum of $.0.150m per transaction for cars, trucks. caravans and motor homesMaximum of $0.100m per transaction for plant & equipment for existing StG motor dealers.Maximum of $0.30m per transaction for boats & $0.050m for motor bikes.Maximum OOT $0.150m

Retail Acceptance CAL Policy Exclusions

All CAL policy exclusions and exceptions must be supported with mitigations or documentation.

Exclusions

System Generated Ref Y/N

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6

Fraud Application X X X X X X

Fails Score Cut √ √ √ √ X X


R

R



offs

Exceptions toAsset TypeorUndesirable Asset Type

√

√

√

√

√

X

√

X

X

X

X

X

Non Residency √ √ √ √ X X

Fails ServiceabilityRegulated (CCR )

Unregulated with signed Self Declaration

Unregulated without signed Self Declaration

√

√

√

√

√

√

√

√

√

√

√

√

X

√

X

X

√

X

Auto Approval overrides √ √ √ √ √ √Amount Financed >$50k √ √ √ √ √ XAge of customer 18-21 √ √ √ √ √ √Vehicle Age at end of loan term √ √ √ √ √ √Employment Status √ √ √ √ X X

Occupation√ √ √ √ √ √

Application Balloon Value √ √ √ √ √ √

Application Balloon/ ResidualValue (non NCCP)

√ √ √ √ √ √

Loan to Retail Value Ratio √ √ √ √ √ X


R

R

R

Redat d

R

R

R

R

R

R

R

R

R

R

R

R



Waiver of manual reference checks for existing "A" rated customers

√ √ √ √ √ X

6 month loan term extension for financial hardship borrower

√ X X X X X

CAL Holder Register

A centralised register of all current Retail Acceptance CAL holders is to be maintained by the Assurance & Training Manager for Unsecured Risk, Australian Banking RiskThe register will include the

CAL holder's name CAL level Approver name Approval date Accreditation level Any material CAL breaches and summary of latest CAL holder

annual review.

End Policy — Accreditation and Education


R

R



Roles and Responsibilities

This policy covers the following topics:DefinitionEvidence of decisionsRe-submitted applicationsRetail Acceptance Credit Approval AuthorityReview of decisions

Definition

Clearly defined roles and responsibilities exist to ensure that: The credit cycle process is effective Portfolio quality is high A strong risk management culture is promoted.

Evidence of decisions

All Auto Finance Acceptance credit decisions are to be recorded in Sovereign, dated and identify the officer exercising their Retail CAL authority.

Re-submitted applications

Another Acceptance Manager/Officer cannot approve an Auto Finance submission which has been declined by one Acceptance Manager/Officer without consulting the Acceptance Manager/Officer who declined the submission.

Retail Acceptance Credit Approval Authority

When exercising your Retail Acceptance credit approval limit (CAL) make sure it is within terms of the responsibility of your role and in terms of Application of CAL.

Authority is applied in terms of Credit Policy No non-compliance of NCCP regulations Integrity of information used to complete the assessment The decision is appropriate with all facts researched and disclosed




The deal represents a sound asset with acceptable risk.

Review of decisions

Credit decisions and the use of Retail Acceptance CAL's are to be randomly reviewed each month by each State team. The Risk Officer, for Auto Finance will each month under take over sighting the deals hindsighted at a State level.These processes are frequently referred to as 'hindsighting' for the 1st Line and over sight reviewing for the 2nd line and are key components of the 3 Lines of Defence Risk Governance framework.

End Policy — Roles and Responsibilities




Three Lines of Defence

Each "Line of Defence" is responsible for establishing its own risk controls and processes for determining whether those controls continue to be adequate and effective. Each subsequent "Line of Defence" also oversees and advises on the adequacy of the processes and controls at the preceding level and considers them in forming its views on the adequacy and effectiveness of risk management.

The key elements of the "Three Lines of Defence" approach to risk management are:

1st LineAccountability and responsibility for risk management starts with the area originating the risk. i.e. the business unit or "front Line"

2nd LineA separate risk control function which establishes frameworks, policies, limits and processes for the management, monitoring and reporting of risk. It also evaluates and opines on the adequacy and effectiveness of 1st Line controls and applications of frameworks and policies and where necessary requires improvement and monitors the 1st Lines progress toward remediation of identified deficiencies.

3rd LineAn independent assurance function that evaluates and opines on the adequacy and effectiveness of both 1st and 2nd Line risk management approaches and tracks remediation progress, with the aim of providing the Board, and senior executive with comfort that the Groups' end-to-end risk identification, management and controls are adequate and operating effectively.

All Lines of Defence – responsibilities common to all Lines

Description Areas Involved

Key functional responsibilities

Report to:

Overall RiskGovernance

All areas Operate within approved risk appetiteMaintain adequate and appropriately skilled and engaged risk management and assurance resources.

Heads of Business units Divisional




Maintain self-assurance processes sufficient to determine that risks are appropriately identified and managed, and that risk controls are effective.

Management Group Executives.

End Policy — Three Lines of Defence




Hindsighting

5% of all deals approved by Retail Credit Acceptance Managers/Officer are to be completed each month at a State Level.

Over viewer

The Risk Officer acting as the Hindsight Over viewer has the responsibility and ownership to provide an independent quality check.The Over viewer is also responsible for:

Reviewing 5% of all deals already hind sighted at State Level for Acceptance Manager/Officer to assess whether the risks attached to the credit are acceptable.

Hind sighting 5% each month of deals approved by the State Operations Managers

Reviewing 5% of the end to end process for matrix approved deals that progress straight to settlements

If necessary, pointing out any features considered adverse in the deal to the hind sighting Manager (or submitting dealer)

If necessary, recommending corrective measures be taken where practicable, to remedy any perceived defects in the credit decision.

Generally ensuring that credit approval discretions are exercised in a prudent manner.

Objectives of the Hindsight review process

A hindsight review process is: A hindsight review process is not: A coaching tool: A means of reviewing

a reporting manager's work and an opportunity to identify development areas and provide feedback / coaching as required

A compliance tool in so far as identifying breach of CALs

A CAL review tool: outcomes can assist with annual CAL review

A portfolio management tool: a means of identifying deficiencies and

A 'one up approval' process. The intention is not to stop deals that have already been approved.

A data integrity tool.




improving the quality of decisions at group level.

How are CAL decisions reviewed?

State level

A sample of approved deals is to be extracted from Sovereign once a month. The review sample is to cover 5% of the Credit Acceptance Managers/officers workReview of CAL decisions is to be completed by a CAL holder at least 1 level above the approving Credit Acceptance Managers CAL.Hindsight review outcomes are to be recorded in a Hindsight Quality report.

RiskOfficer

The Risk Officer is to select a sample of 5% of the deals hind sighted monthly at State Level.The Risk Officer is also to review the end to end process from a sample of matrix deals that have gone straight to settlement. The Risk Officer is also to hindsight a sample of deals approved each month by each State Operations Manager.The review sample is to cover 5% of each Operations Managers hind sighted deals and matrix approved deals. Overview outcomes are to be recorded in a Hindsight Quality report.

End Policy — Hindsighting




Accountability

All credit and non-credit related activities involve an element of accountability. Auto Finance Retail Acceptance Managers/Officers are responsible for assessing accountability and actioning non-compliance with credit rules and procedures and for non-observance of roles and responsibilities.

These responsibilities are outlined below: Assess accountability for non-compliance of credit rules and procedures and if necessary progress their recommendation to the Head of the business unit for implementation or appropriate remedial or disciplinary action

Assess accountability when: An account is transferred to a problem loan management unit A debt is written off or a provision raised Process deficiencies are identified during the origination, credit

approval, control or checking process Matters are bought to the attention of Credit Risk / Regional heads

of Business Units or General Manager. Distinguish between isolated errors of judgment and: Failure to observe credit rules and credit procedures. Disregard of credit officer directions Repeated instances of bad decisions, incompetence or inappropriate

and reckless behaviour Fraud and misrepresentation

Make sure the assessment: Is based on information available at the time the decision was made Considers changed circumstances through external or

unforeseeable events Distinguishes between bad decisions and disregard of credit rules

and credit procedures. Treat all accountability outcomes as confidential in terms of

Employee Policies. Place file notes on personnel files only and mark them 'Privileged and Confidential'

Do not include assessment details on files transferred to a problem loan management unit. Only show that accountability has been dealt with.

End Policy — Accountability




Data Recording

The accurate recording of amendments to credit policy and changed credit facility data, as soon as possible after approval, is extremely important to ensure that we have an accurate understanding of our business and credit risk. The integrity of credit policy and data impacts on effective management of client’s credit exposures, analysis of credit portfolio composition and quality and adherence to regulatory requirements.

End Policy — Data Recording




Appendix a

This procedure covers the following topics:Acceptance Training

Acceptance Training

The following training program is not Auto Finance specific, and is designed to provide you with the basic skill and knowledge to assist with your induction into an Acceptance position. This program is in addition to the mandatory normal “Required Learning” via e-luminate.There are six (6) components to this program consisting from on line training modules via e-luminate, System training, one on one training through to Dealer visitation.It is recommended that you print off the following checklist which will be used by your Operations Manager to monitor your progress and once completed will be filed away for compliance and audit requirements.Completion of this training program in full is a mandatory requirement before a CAL can be recommended or considered.Once all six components have been successfully completed you are encouraged to revisit the training program or any part there off as a refresher if and when required.

View the training checklist.Please follow these instructions to locate the following modules within e-luminate

Log onto e-luminate (through IDM) In the 'Search the Catalogue' field type in the name of the module Click GO

Select the course by registering and the click start

PART ONE – E-luminate Training Modules

Five C of Credit – The Five C’s of Credit provides an easy to remember framework for formulating an opinion of an application for credit and can assist when making a recommendation or decision.

Testing The Water – This course introduces the key financial statements of a business and examines some of the basic accounting principles behind these statements.

Effective Listening – Evaluates and understands how effective your listening skills are at the present moment. It identifies the benefits of




effective listening and understands and recalls the 10 keys of effective listening.

Telephone Professionalism – Assists to identify the ingredients of exceptional telephone service, discovers the effects of good and poor telephone techniques. Identify critical telephone skills including strategic use of voice and positive language whilst listing the steps required to professionally close a call.

Living Customer Service – It simulates what we want St.George customer service to look like and what we need to do to maintain our differentiation.

Building Rapport – Explains rapport building and the impact it has on business and demonstrates skills required to build rapport with customers.

Calming an Angry Customer – Identifies the 6 steps that you can follow to calm an angry customer. Identifies the approach to respond to the emotions of an angry caller.

Handling an abusive customer – Identify the five steps to handling an abusive caller and practicing the steps to calm an abusive caller.

PART TWO- Accreditation Modules

The following modules are located via e-luminate / Sovereign / Automotive Accreditation Program. These modules are designed to provide you with a better understanding of the legalisation requirements surrounding our industry together with some of St George’s internal processes, policies and products.

Introduction National Consumer Credit Legislation Anti Money Laundering / Counter Terrorism Financing Legislation Privacy and Trade Practices Legislation Products Acceptance Criteria Documentation and Settlement

PART THREE- Sovereign Global & Core

This portion of the training will provide you with a better understanding of our two main software systems.Sovereign Global is our front end system that is used for evaluation purposes and Sovereign Core that houses settled loans. The State resident expert or the Acceptance Manager will conduct training.




PART FOUR – On the Job Training

This section explores all facets of the role such as CCR Credit checks Responsibility of the role Time management Workflow Credit Assessment Decision Verifying accuracy of data ie: employment, pay, residence etc Policy exceptions Understanding CAL and how to obtain one.

PART FIVE – Examples of Dealers most common objections together with suggested answers.

Please use these as a guide and tailor it to suit your own style and the situation. It is suggested that you print a copy of this and have it beside your telephone. Read the Handling Dealer Objections.

PART SIX – Dealer Visitation

Acceptance officer will accompany Relationship Manager for a dealer visitation. The visit will comprise of

Meet and greet Business Manager Understanding the Dealership sale process Role of the Business Manager within a Dealership Input a deal into Sovereign Global

End Procedure — Appendix a




Appendix b & c

This procedure covers the following topics:Letter ALetter B

Letter A

Single or joint applicants where both have adverse reports. Both applicants to receive individual letters.Date,Name,Address,Dear <<Name>>,Thank you for your recent Auto Finance application. We regret to advise that we are unable to approve your application at this time. This decision was based wholly or partly on information in the credit report provided to us by Veda Advantage Business Systems Limited. We obtained this report for the purposes of assessing your application.Under the Privacy Act you have the right to obtain access to your credit information held by a credit-reporting agency. The most convenient way for you to obtain access to your credit information file is to contact Veda Advantage at:

Public Access DivisionVeda Advantage Business Systems LimitedPO Box 964NORTH SYDNEY NSW 2059

We suggest you provide them with your full name, date of birth, address and driver’s licence number, to ensure correct identification of your file.

Thank you for your interest in applying for Auto Finance.

Yours sincerely,NameTitleDepartment/Area




Letter B

Joint applicants where only one has an adverse report or where a guarantor has an adverse report.Date<Name 1><Address>Dear <Name 1>,Thank you for your recent Auto Finance application. We regret to advise that we are unable to approve your application at this time.

This decision was based on information contained in a credit report relating to <<[a joint applicant] / [the proposed guarantor]>>. We obtained this report from Veda Advantage Business Systems Limited for the purposes of assessing your application.

Thank you for your interest in an Auto Finance Loan. We look forward to being of service in the future.Yours sincerely,NameTitleDepartment/Are

End Procedure — Appendix b & c
