Document background
The Loan Agreement And Mortgage is a fundamental document in New Zealand's secured lending practice, essential for both residential and commercial property transactions. It serves a dual purpose by documenting the loan facility terms while simultaneously creating a registrable security interest over real property. This document type is commonly used by banks, financial institutions, and private lenders when providing secured financing, whether for property purchases, refinancing, or other funding purposes. It must comply with New Zealand's regulatory framework, including the Credit Contracts and Consumer Finance Act 2003, Property Law Act 2007, and Anti-Money Laundering legislation. The document includes comprehensive provisions covering loan terms, security arrangements, borrower obligations, and enforcement rights, making it suitable for various lending scenarios while providing adequate protection for all parties involved.
