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The National Australia Bank today announced that it will adopt the modifications to the 2003 Code of Banking Practice, which were announced by Australian Bankers' Association on 14 May 2004. These minor changes will be effective from 31 May 2004 and finetune some guarantor disclosure practices, mainly for company directors acting as guarantors for their company. The National adopted the 2003 version of the Code at the end of August 2003. Once adopted by a bank the Code is contractually binding. Ian MacDonald, Executive General Manager of the National's banking operations in Australia, said that the National continues to be a strong supporter of the Code. "The Code is part or our commitment to continuously improving banking standards by providing more effective disclosure for our customers, including prospective guarantors," Mr MacDonald said. The changes enable company directors, who are to become guarantors of their company, to choose whether or not they wish to receive some of the guarantee disclosure information, and to choose whether they wish to sign the guarantor without waiting until the next day. The changes were made because these company directors complained about being forced to receive disclosures they did not want, since the disclosures contained information they already knew. This was causing unnecessary delays and duplication in settling loan facilities for small business company directors. Also effective from 31 May 2004, the National will provide guarantee disclosure information about notices of demand, dishonours, excesses and overdrawings as required by the 2003 Code. The National will also list the extent of excesses and overdrawings, ahead of the February 2005 transition window.
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