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| Investment in Owenlaw First Mortgage Income Fund is in two stages. |
| Stage One: Application/Registration |
| Stage one involves applying for registration and being accepted as a member of the Fund. Simply complete either the Specific Investment Authority form or General Investment Authority form at the back of this Product Disclosure Statement (PDS), and forward it to us with your investment cheque or deposit your investment funds direct into our trust account with National Australia Bank “Owenlaw Trust Ltd – Trust Account” – BSB number: 083 155 Account number: 17 654 3615. Until allocated into an approved sub-Fund your funds will be deposited into an “at call deposit” account with National Australia Bank. |
| Stage Two: Investment Approval |
Specific Investment Authority
Stage two involves us offering to you an approved sub-Fund or First Mortgage loan in which to invest. Sub-Funds are initially approved by us and we will give you an Invitation to Invest or Supplementary Product Disclosure Statement, in duplicate, giving details of a First Mortgage loan. |
| You approve of the allocation of your funds to that First Mortgage loan by signing your consent on the duplicate of the Invitation to Invest and returningit to us. You can also give your consent by email, or facsimile to us. Your funds will then be allocated to such loan and advanced to the Borrower when all investors whose funds make up the allocation to the Borrower have approved of the allocation. |
| If you do not approve, either by failing to approve the Invitation to Invest within a reasonable time or by advising us, we will then offer to you a further sub-Fund in which to invest, or at our discretion return your funds to you. Or at your request we shall return your funds to you. |
General Investment Authority
If you have completed a General Investment Authority such authority gives us full power to invest your funds in a First Mortgage selected by us. By providing us with a General Investment Authority you are foregoing your choice of selection of investment among specific mortgages which may have different features. |
| After your funds have been allocated by us to a First Mortgage we shall provide you with an Invitation to Invest, in duplicate, giving details of the First Mortgage loan. You have a 14 day cooling off period from the date you are deemed to have received the investment proposal. |
| The Invitation to Invest contains details about: |
| 1. |
the Borrower and any guarantors; |
| 2. |
the amount of the loan; |
| 3. |
the address of the security property to be mortgaged; |
| 4. |
the independent valuation – date, amount, valuer’s name & valuation synopsis, usually including a photograph of the property when available; |
| 5. |
the loan to value ratio (which will not be over 70%); |
| 6. |
the interest rate payable by the Borrower; |
| 7. |
the management fee paid by the Borrower to us; |
| 8. |
the term of the loan; |
| 9. |
the date when the loan is to be repaid; |
| 10. |
the title reference; and |
| 11. |
any special provisions in the mortgage. |
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