On behalf of our Member Benefit Partner, Cleardocs, we are pleased to announce that an Instalment Warrant Arrangement package - prepared so that your SMSF can borrow money in accordance with the Superannuation Industry (Supervision) Act 1993 (SIS Act) - is now available.

Changes to superannuation legislation now allow SMSF trustees to borrow under special "limited recourse" lending arrangements: commonly referred to as "instalment warrant arrangements".

This package is designed for non-bank lending

The Cleardocs SMSF Instalment Warrant Arrangement Package enables you to create all documents you need to establish a limited recourse loan arrangement, including a loan agreement, a deed establishing a "custody trust" and security documents under Section 67(4A) of the SIS Act for your SMSF.

NOTE: The Package does not include security documents for real property - see further below under "What our package does not include".

Instalment warrant arrangements involving banks

In circumstances where the lender, such as a bank, provides its own loan and security documents for an instalment warrant arrangement, the borrower (the SMSF trustee) will only need to establish a custody trust.  Cleardocs is currently tailoring its package to suit these circumstances.  

In the meantime, if you only need to establish a "custody trust" for an instalment warrant arrangement, then call Cleardocs on 1300 307 343 to be put in touch with lawyers who can assist.

What the Cleardocs package includes

The Instalment Warrant Arrangement Package will enable you to create the following documents:

Declaration of Custody Trust

• Loan Agreement

• Equitable Share & Unit Charge (if required)

• Compliance Letter

• Trustee Minutes

The package also includes an establishment kit in relation to the documents.

What the Cleardocs package does NOT include

The package does not include:

1.    security documents for real property (such as a registerable mortgage); or

2.    real property conveyancing or share/unit transfer documents.

What else will you need?

You will need a lawyer to:

1.    advise on how to use the documents in the Instalment Warrant Arrangement Package in accordance with the SIS Act and other applicable laws; and

2.    prepare the real property conveyancing or share/unit transfer documents.  

You will also need a Cleardocs SMSF deed to use the Instalment Warrant Arrangement Package. If your SMSF does not already have a Cleardocs deed, then you can click here to register with Cleardocs and to update to a Cleardocs deed for just $99 inc GST.

How much does it cost?

The Instalment Warrant Arrangement Package is just $599.50 - and if you are already a registered customer of Cleardocs, click here to start your documents now.

Need more information?

If you would like more information about Cleardocs Instalment Warrant Arrangement Package you can click here to view the product page, or call Cleardocs on 1300 307 343.