• Operating your Facility
• Managing buffers and margin calls
• Requesting changes to your Facility
• Working with a broker or adviser

Operating your Facility

Q: How do I get online access to my Facility?

A: NAB Equity Lending will issue you with a User Name and Password shortly after your application has been approved. If you haven't received your User Name and Password within 10 working days from the date you receive written confirmation that your Facility has been established, or have forgotten these details, please contact a NAB Equity Lending Client Service Representative on 1300 135 145.

Q: Will I receive regular Facility statements?

A: Yes. We will send you a detailed statement that provides a summary of your Facility including the market and security value of your portfolio and your transaction details.

Remember, you can monitor your Facility online 24 hours a day, 7 days a week.

Q: How can I make payments and deposits to my Facility?

A: Take advantage of NAB's extensive distribution network to make regular payments to your Facility. Payments can be made by:

• Internet banking
• Telephone banking
• BPAY
  The NAB Equity Lending Biller Code is: 726 315. Contact us on 1300 135 145 or at equity.lending@nab.com.au to obtain your unique BPAY Customer Reference Number.
• In any NAB branch
  Contact us to request a deposit book.
• By cheque
  Please make your cheque payable to the name of your Facility. View address details.

Q: How do I transfer shares and/or managed funds to my NAB Equity Lending Facility?

A: To transfer shares and/or managed funds to your NAB Equity Lending Facility, complete the Security/managed fund transfer instruction form. (232kb).

Q: How do I provide third party security?

A: If you would like to arrange for a guarantor to provide third party security for your Facility, please contact a NAB Equity Lending Client Service Representative on 1300 135 145.

Q: How do I settle share trades through my Facility?

A: If you haven't provided security to NAB Equity Lending to commence trading, you need to complete the Security/managed fund transfer instruction form (232kb). You must also provide NAB Equity Lending with the authority to settle with any broker you will be trading through, including discount and online brokers by completing a Financial adviser/broker authority/ (227kb).

Q: How can I acquire a managed fund investment?

A: You can apply to acquire an approved managed fund investment using funds from your margin loan. To arrange for NAB Equity Lending to draw funds from your Facility and submit the application for units in an approved managed fund on your behalf, please complete the Managed fund application/lodgement instruction/ (226kb).

When you wish to acquire units, NAB Equity Lending will generally deal directly with the relevant fund manager to facilitate any instructions you provide us.

Q: How do I redeem a managed fund investment?

A: To redeem a managed fund investment you need to complete the Managed fund redemption instruction (226kb).

If the redemption will put your Facility in the buffer or margin call position, the proceeds from your redemption will be automatically credit to your Facility. If the redemption has no impact on the normal operation of your Facility, you can request that the proceeds of the redemption be credited directly to your bank account by completing the "Details of account to be credited" section of the above-mentioned form. When you redeem a managed fund investment, NAB Equity Lending will deal directly with the relevant fund manager to facilitate any instructions you provide us.

Q: How do I provide additional security for my loan?

A: Any existing shares or managed funds that you (or a third party) hold can be lodged as security for your Facility any time by completing the Security/managed fund transfer instruction form (232kb). You also need to provide us with copies of the most recent shareholder statements and/or unitholder statements for the shares and managed funds you are lodging as security.

Q: How do I pay interest on my margin loan from my nominated bank account?

A: If you would like your interest payments to be debited from a nominated bank account, please complete the Request for direct debit (225kb). You can download this form from our website. It is important that you read the Direct Debit Service Agreement contained in the NAB Equity Lending Facility Terms before you complete this request.

Q: How do I request an advance from my NAB Equity Lending Facility?

Funds advanced under your Facility must be used wholly or predominantly for business or investment purposes (other than investment in residential property). A request for an advance must also:

• be for a minimum of $2,000;
• not place your Facility in a buffer or margin call position; and
• not cause the total loan(s) outstanding to exceed the Facility limit.

NAB may refuse a request for an advance if it is not satisfied that the proceeds of the advance will not be used for a Code Purpose (as that term is defined in the Facility Terms).

To request an advance from your Facility, complete the Request for advance (226kb). Upon receipt of your request, NAB Equity Lending will assess whether the advance can be made and, if so, make the funds available to you by:

• mailing a cheque to your nominated postal address; or
• directly crediting the funds to a bank account nominated by you

Q: How do I refinance an existing margin loan from another margin lender?

A: To refinance an existing margin loan with NAB Equity Lending, please provide us with details of the securities and/or managed funds you wish to transfer to your NAB Equity Lending Facility by completing the Refinance instruction (227kb).

Q: How can I authorise another person to operate my Facility on my behalf?

A: If you are going away or may not be contactable for some time, we recommend you consider appointing an authorised representative to operate your Facility on your behalf. Your authorised representative is able to make decisions and give instructions on your behalf, including responding to a margin call. To appoint an authorised representative, complete the form titled Client representative(s) authority (226kb).

Q: We have an authorised representative on our Facility. Can that authorised representative have access to our Facility?

A: Authorised representatives can have access to your Facility, and they will be issued with their own User Name and Password, at your request. You should not provide an authorised representative with your User Name or Password. Where a Facility is in the name of a company, a trustee of behalf a trust or a partnership, the authorised representative/s for these entities will all be provided with their own individual User Name and Password.

Q: I have more than one NAB Equity Lending Facility. Will I need a separate User Name and Password to gain access to each Facility?

A: You will be issued with just one User Name and Password and these will give you access to all your NAB Equity Lending Facilities (except those for which you are a guarantor only).

Q: I am a guarantor only in respect of a NAB Equity Lending Facility. How do I access information about the Facility?

A: NAB Equity Lending will provide you with a Facility statement that provides information about the Facility.

Managing buffers and margin calls

Q: How can I minimise the risk of a margin call?

A: It is important that you closely monitor your Facility on a regular basis and promptly take action if you are in a margin call position. While we will attempt to contact you if you are in a margin call position, if we are unable to do so we may sell shares or redeem managed fund units to restore your Facility position without further reference to you.

If you intend to go away or will not be contactable for some time, we recommend you consider the following:

• deposit additional funds (either to the credit of your variable interest rate loan account or to your Cash Management Account);
• provide additional approved investments as security;
• nominate an authorised representative to act on your behalf (including responding to margin calls);

Other ways to minimise the risk of a margin call are:

• for variable interest rate loans, pay the interest monthly instead of having the interest added (capitalised) to your loan balance;
• arrange for dividends and distributions to be credited directly to your variable rate loan or Cash Management Account;
• do not borrow up to the maximum allowed. For example only borrowing up to 60% against an investment with a security value of 70% provides you with additional protection;
• diversify your portfolio across a number of investments and industry sectors to lessen the impact of poorly performing investments.

Q: What should I do in the case of a margin call?

A: If NAB Equity Lending makes a margin call, you should undertake one or more of the following steps to restore the security value of your portfolio to more than your outstanding loan amount:

• Reduce your outstanding loan amount (if you have a variable rate loan)
• Deposit cash into your Cash Management Account (if you have a fixed rate loan)
• Sell some investments and apply the net sale proceeds against your NAB Equity Lending Facility
• Provide additional approved investments as security

Requesting changes to your Facility

Q: How can I request changes to my Facility?

A: To request changes to your Facility, you will generally need to provide us with written instructions.

Visit the NAB Equity Lending client forms page to download forms that make it easy to provide us with instructions we can action promptly on your behalf.

Q: How do I advise a change of name/address for my Facility?

A: To notify us of a change of name and/or address please complete the Change of Name/Address Advice (224kb). If you change your name due to marriage, a certified copy of the marriage certificate must also be provided. If you change your name for any other reason, please include any relevant supporting legal documentation.

Q: How can I increase my Facility limit?

A: To request an increase to your Facility limit, please complete the Request to increase Facility limit (225kb). If there are any guarantors to your Facility, you will need to obtain consent for any increase from all guarantors before NAB Equity Lending will approve the increase. You should provide any guarantors with the form titled Request to increase Facility limit - Guarantor consent (225kb) and ask that they complete this and return the form directly to NAB Equity Lending.

Q: How do I establish instalment gearing?

A: Your NAB Equity Lending Facility can be established with instalment gearing. This provides you with the ability to invest in approved managed funds (which appear on the Approved Investment List) on a regular basis. To establish an instalment gearing arrangement complete the Request to establish instalment gearing (229kb).

Q: How can I change my interest rate option?

A: You may request to change the interest rate option applying to your margin loan or a portion of your loan. To do this, complete the Request to change interest rate option (225kb).

Working with a broker or adviser

Q: Does my margin lending Facility affect the role of my broker?

A: Where you have an existing broker, there is generally no need to change this relationship. The buying and selling of shares can be conducted through any broker who will settle with NAB Equity Lending.

If you don't have an existing relationship with a broker and would like to trade online yourself, you may like to register with NAB OnLine Trading.

Q: How do I nominate a financial adviser or broker?

A: You can trade with any broker of your choice, however, your broker must be given authority to buy and sell shares utilising your Facility. If you wish to nominate a financial adviser or broker to act on your behalf, please complete the Financial adviser/broker authority (227kb).