General Terms & Conditions

1.1 In this agreement the Borrower is also called “you” or “your”. Where there is more than one Borrower, each is liable jointly and individually. A reference to “Borrower”, “you” or “your” means all Borrowers, or any one or more of them, as the context requires.

1.2 “Account balance” means everything owing on your account with FG Finance (the Lender), made up of principal, interest and charges. “Business day” means any day other than a Saturday, Sunday or national public holiday in New Zealand.

1.3 You are “in default” if you do something this agreement says you must not, or fail to do something it says you must, and you are required to put that right in line with this agreement.

1.4 “Default Charges” are the fees and administration costs listed in Clause 9 or in our published Fee Schedule.

1.5 “Default Interest” is charged at the ordinary annual rate plus a further 5% per annum, worked out daily on the overdue part of the account balance.

1.6 “Financial default” means a scheduled payment is late, reversed, dishonoured or unpaid, or you don't repay the account balance when we formally call for it.

1.7 “Future Advance” and “collateral” carry the meanings given in section 16 of the New Zealand Personal Property Securities Act 1999, even though that Act does not itself apply.

1.8 “Insurer” means the insurance company that issues a relevant Policy.

1.9 “Interest” covers both ordinary interest and Default Interest.

1.10 “Intermediary” means anyone arranging insurance or a loan under this agreement for the Borrower, including an authorised insurance broker.

1.11 “Policy” or “Policies” means the insurance policies the Borrower owns (or will own) and for which FG Finance funds all or part of the premium.

1.12 “Scheduled payment” means the monthly or periodic instalments you must pay FG Finance on the dates set out in the Payment Plan.

2.1 We will set up and run an insurance premium credit facility for you — that is, we'll lend you the money you need from time to time to pay premiums on policies arranged through your broker or intermediary.

2.2 We won't release any funding until we're satisfied with the terms, validity and suitability of the underlying Policy.

2.3 You ask and authorise us to pay the premiums on any Policy in whatever way the Insurer or Intermediary requires, until you tell us in writing that you want to cancel the insurance or the repayment plan.

2.4 We may call for immediate repayment, in part or in full, if an Insurer refuses to issue a Policy, an Insurer cancels a Policy, or you go into default. Until we do, you agree to make every scheduled payment on its due date.

2.5 Tell us or your Intermediary straight away if your address, phone number, email or bank account details change.

2.6 You must keep a bank account with direct debit and/or automatic payment facilities so the periodic repayments under Clause 6 can be made without interruption.

5.1 We may apply any payment you make in whatever order we decide, regardless of any direction you give. As a rule, we put payments towards outstanding Default Interest and Default Charges first, then towards reducing the principal.

5.2 If you miss payments or don't make up a shortfall when asked, we may ask the Insurer to cancel some or all of your funded policies and put the pro-rata premium refund towards your account balance.

6.1 Each month you must pay us at least the scheduled payment on or before its due date, and you must give and keep in place a direct debit or automatic payment authority. If a due date isn't a business day, we'll process the payment on the next business day. Deposits or credits only count once they've cleared and been fully honoured by the paying bank.

6.2 If we accept a payment or bank a cheque you send marked as full settlement (or in words suggesting accord and satisfaction), that acceptance doesn't mean we've agreed to those terms unless we agreed in writing, before receiving it, to take the amount in full settlement.

7.1 You warrant to FG Finance that everything you've told us in connection with this contract is complete, true and not misleading, that you've properly disclosed all relevant facts to the Insurer, and that the insurance policies are in full force and effect.

7.2 As soon as you sign this agreement, you authorise the Intermediary to tell the Insurer about the assignment and power of attorney in Clause 11, and to ask the Insurer to confirm receipt in writing to FG Finance.

7.3 You agree to indemnify FG Finance for any loss, cost, liability or expense arising from a default under this agreement, or from anything we do at your request or on your behalf.

8.1 If you're in default, we may immediately debit your account with the Default Charges in Clause 9 and suspend the facility so no further advances are made.

8.2 If you're in financial default, we'll charge Default Interest on your account balance, worked out daily from the due date until the default is fully put right.

8.3 Missing a scheduled payment doesn't remove your obligation to pay, even after we've debited default fees. You agree to keep enough in your bank account for us to recover all default fees, overdue instalments and default interest.

8.4 If you're in default we may call up the whole facility at once. If you don't pay on demand, you must meet all enforcement costs, now and later, as contractual damages.

9.1 Dishonour Fee: we may charge $30.00 NZD if a scheduled direct debit is reversed, returned or dishonoured by your bank.

9.2 Cancellation Fee: we may charge $100.00 NZD where a default leads to the formal cancellation of the facility and the funded policies.

9.3 Administration Fee: we may charge $60.00 NZD per hour where our staff have to spend time dealing with your default — for example making calls, preparing notices or handling recovery.

9.4 Enforcement Costs: if it comes to legal action or cancellation, you agree to meet all court and disputes tribunal costs, collection agency commissions and actual solicitor's fees FG Finance incurs in enforcing this agreement.