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Asku Terms and Interest Rates



COLLATERAL SECURITY: means each security agreement, guarantee, mortgage of land or other agreement (present or future) expressed or intended to be security for any Secured Indebtedness or Secured Obligation;


EVENT OF DEFAULT: means any event specified in clause 7 and any other event or circumstance that, with the giving of notice, lapse of time or fulfillment of another requirement, would constitute such an event;


PPSA: means the Personal Property Securities Act 1999;


RELEVANT DOCUMENTS: means this Agreement, each Collateral Security and each other agreement,(present or future) evidencing or relating to Secured Indebtedness or Secured Obligations;


RELEVANT PARTY: means the Debtor and each other party to a Relevant Document (other than the Secured Party);


SECURED INDEBTEDNESS: means all indebtedness of the Debtor to the Secured Party (including, for the purposes of sections 71 and 72 of the PPSA, future advances and the amount in the Schedule);


SECURED OBLIGATIONS: means all obligations (whether present or future but other than Secured Indebtedness) of the Debtor to the Secured Party


SECURED PROPERTY: means all present and future right, title and interest (legal and equitable) of the Debtor arising out of, or in connection with, the goods and all proceeds of such Goods; specifically the Goods listed under the term ‘The Collateral:’ in the Schedule.

All other definitions have the meanings given to them in the PPSA or Personal Property Securities Regulations 2001.


1. COVENANT TO PAY:  The Debtor will pay the Secured Indebtedness free of any restrictions or conditions when due and will comply with the Secured Obligations The Debtor will pay to the Secured Party by the instalments and at the times specified in the Schedule.


2. SECURITY:  To secure the due payment of the Secured Indebt ness and the compliance with the Secured Obligations, the Debtor grants to the Secured Party a security interest in the Secured Property. This Agreement and each Security Interest created under this Agreement is a continuing security, notwithstanding intermediate payments or anything else and is in addition to, and not to be merged in, any Collateral Security.

2.1 The security described in the Schedule is given as security for all amounts payable under this Agreement. This Agreement creates a security interest in respect of the security described in the Schedule. For the purpose of this Agreement “security interest” :

[a] In relation to land, means an interest of land under a mortgage and any unregistered charge on any land and any interest in the land granted or created with security money for the payment or performance of an obligation.

[b] In relation to person property has the meaning set out in Section 17 of the Personal Property Securities Act 1999.      

[c] In relation to any other property means any interest in that property that has been created for the purpose of securing money or moneys worth.

2.2 All moneys that is owed by the Debtor under this Agreement and any other agreement that the Debtor enters into with the Creditor will be secured by the security detailed in the Schedule.


3. UNCONDITIONALTITY OF SECURITY: No security interest created under this Agreement is discharged, nor are the obligations of the Debtor affected by any time, indulgence, waiver or consent at any time given to a Relevant Party or any amendment to a Relevant Document or anything else whatsoever. The Secured Party is not liable to the Debtor even though the Debtor’s rights in subrogation or otherwise may be prejudiced as a result.


4. REPRESENTATIONS: The Debtor acknowledges they are the sole legal and beneficial owner of the Secured Property and that no other security interest exists.

If the loan is being made to enable the Debtor to purchase the Secured Property the Debtor undertakes that the Debtor will forthwith apply the loan to purchase the Secured Property free of all encumbrances and if so requested by the Secured Party the Debtor hereby authorises the Secured Party to pay the advance to the owner of the Secured Property on behalf of the Debtor for such purpose.


5. UNDERTAKINGS RELATING TO THE SECURED PROPERTY:  The Debtor shall not do or permit or suffer to be done anything, which might prejudicially affect this security. The Debtor undertakes that it will;

[a]          Not dispose of any of the Secured Property without the prior written consent of the Secured Party

[b]          Not further charge or encumber the Secured Property and will not suffer any lien to be claimed thereon

[c]          Not allow any Secured Property to become an accession to any property that is not Secured Property

[d]          Keep and maintain the Secured Property in good repair working order and condition and shall repair all damage to the Secured Property howsoever caused and cause Secured Property to be operated in a proper and careful manner.

[e]          Pay all registration and any other fees, charges and taxes payable in respect of the ownership and operation of the Secured Property and in the use of the Secured Property shall comply with all relevant statues, regulations and by-laws and take all necessary precautions to prevent damage being caused to persons or property

[f]         Keep the Secured Property at the Debtor's address stated in the Schedule or at such other address as may be approved in writing by the Secured Party, and will duly and punctually pay all rents, rates, taxes, charges and impositions payable in respect of the premises whereon the Secured Property shall for the time being be kept.

[g]        Any accessories, additional equipment or replacement parts supplied with or hereafter attached to the Secured Property shall be or become a part thereof and included in the term the Secured Property and be subject to this security.



[a]          The Debtor must notify the Secured Party forthwith of any event or circumstance that may have material and adverse effect on the Secured Property, including any event of Default

[b]          The Debtor acknowledges that all information provided is true in all material respects as at the date this information is provided


6. INSURANCE: THE Debtor shall insure and keep insured the Secured Property for the full insurable value thereof against loss or damage, by fire, earthquake, accident, and in the name of the Debtor and the Secured Party for their respective rights and interests and the Debtor shall pay all premiums payable in respect of such insurance PROVIDED HOWEVER that if the Debtor fails to keep the Secured Property insured the Secured Party may effect or keep on foot any such insurance and any payments made or expenses incurred by the Secured Party in so doing shall be payable by the Debtor upon demand AND the Debtor shall not do or permit or suffer to be done anything which might or could prejudice any such insurance.  All moneys payable under such insurance shall be payable to the Secured Party who may in its discretion apply such moneys in or towards payment of any moneys payable by the Debtor to the Secured Party hereunder notwithstanding that the time for payment may not have arrived or in or towards repairing the Secured Property or partly in one way and partly in the other as the Secured Party may determine.  The Debtor acknowledges that the production of this instrument to any insurer shall be complete and sufficient proof of the Secured Party's authority to receive all moneys payable under such insurance.  The Secured Party shall be entitled to hold any insurance policy in respect of the Secured Property.



7.1  DEFAULT: An event of Default occurs if, at any time and for any reason, whether or not within the control of a party:

[a]            Non-payment: The Debtor fails to pay on its due date any Secured Indebtedness and all registration and other fees, charges and taxes payable in respect of the ownership and operation of the Secured Property

[b]           Breach of undertaking: The Debtor does not comply with any of the covenants, conditions or agreements contained or implied in this instrument

[c]            Breach of Representation: The Debtor makes any representation or statement that is untrue or misleading

[d]           Repudiation: any relevant document ceases to be or is claimed not to be in full force and effect or its validity or enforceability is contested by any person

[e]            Insolvency: The Debtor dies, is insolvent or commits an act of bankruptcy

[f]             Liquidation: The Debtor has a petition for winding up presented against it or shall pass a winding up resolution or be or become unable to pay its debts as they fall due or shall suspend payment to its creditors or shall cease its business or shall have a receiver appointed of all or any part of its assets.

[g]           Enforcement: if any distress or execution be levied or issued upon or against any of the property or assets of the Debtor. If any judgment be obtained against the Debtor and shall remain unsatisfied for a period of seven (7) days


7.2  RIGHTS OF SECURED PARTY FOLLOWING DEFAULT: To the extent permitted by law, if an event of Default occurs:

[a]            The moneys hereby secured shall become due and payable immediately

[b]            The security interest hereby created shall be enforceable

[c]            The Secured Party has the right to issue a Repossession Warning Notice as per the Credit Contracts and Consumer Finance Act 2003

[d]            The Secured Party has the right to issue a PLA Default Notice as per the Property Law Act 2007 were applicable


7.3 RIGHTS OF ENFORCEMENT: This clause is subject to the provisions of the Credit Contracts and Consumer Finance Act 2003; the Property Law Act 2007; and the Personal Property Securities Act 1999, whichever is applicable

Upon an Event of Default the Secured Party may thereupon or at any time thereafter without any further consent of the Debtor and without giving the Debtor any notice or waiting any time and notwithstanding any subsequent acceptance of any payment of any moneys hereby secured do all or any of the following acts Agreements or things:-

[a]         Enter upon any land or premises whereon the Secured Property may be situated and to take possession thereof.

[b]         Sell the Secured Property in such manner and on such terms as the Secured Party may deem expedient whether by private sale or public auction and whether together or separately and to purchase the Secured Property or any part thereof at any such auction and to rescind or vary the terms of any part thereof at any such auction and to rescind or vary the terms of any contract of sale and to resell the Secured Property without being answerable for any loss or expense occasioned thereby.

 [c]        Let or bail the Secured Property for such term and for such rent and generally subject to such conditions as the Secured Party shall think fit including a purchasing clause (compulsory or optional) as the Secured Party shall think fit.

[d]         Give valid receipts for all moneys and execute and do all assurance, instruments, acts, Agreements, matters and things, which the Secured Party may think proper for realising the Secured Property.

[e]         Execute in the name of and on behalf of the Debtor all transfers, assignments, leases, bailment’s, Agreements and assurances necessary to vest in any purchaser, lessee or bailee any part of the Secured Property and to execute any documents in relation to any of the powers conferred upon the Secured Party as may in the Secured Party's opinion be necessary or expedient.

[f]          Pay any auctioneer, salesman, servant or agent commission and/or remuneration for assisting the Secured Party in the exercise of its right hereunder and any moneys so paid shall be deemed to be moneys hereby secured.

[g]         The Secured Party has all the rights of an natural person in relation to the Secured Property and has all other rights conferred by law (including Part G of the PPSA) in relation to the secured property


8. PROCEED OF ENFORCEMENT: All money arising from or in connection with the exercise of enforcement rights of the Secured Party is to applied in accordance with Part 9 of the PPSA or Land Transfer Act


9. LIABILITY FOR THE SECURED PARTY: The Secured Party does not (and will not be deemed to) undertake any obligations of the Debtor in respect of the Secured Property by virtue of this Agreement or a Collateral Security



10.1 EXERCISE OF POWERS: Subject to any mandatory law, the Secured Party will not be liable:

[a]         In respect of any loss of damage that results from the exercise, attempted exercise or non-exercise by the Secured Party of its rights under this Agreement or conferred by law; or

[b]         To account as mortgagee in possession in respect of any Secured Property if it, or any person on its behalf takes possession of the Secured Property.


10.2. PROTECTION OF THIRD PARTIES: In relation to the exercise or purported exercise of the rights of the Secured Party or a Receiver under this Agreement or conferred by law, no person:

(a)     Need enquire

(1) Whether the relevant rights were exercised or are exercisable; or

(2) About the propriety or regularity of any transaction or dealing; or

      (b)    will be affected by notice that any such transaction or dealing is unnecessary or improper.


10.3. INDEMNITY: Subject to any mandatory law, the Debtor will indemnify the Secured Party against each cost or loss (including loss of profit / margin) incurred by it as a result of

[a]         The occurrence or continuance of an Event of Default; or

[b]         Anything done or omitted by it in the exercise of its rights under this Agreement or conferred by law (whether or not arising by reason of mistake, oversight, negligence or error of judgment)

By payment to it on demand of the amount that it certifies is required to compensate it for that cost or loss.


11: NO OBLIGATION TO MARSHAL: The Secured Party is not required to marshal, enforce or apply under any security interest, guarantee or other entitlement held at any time by it


12. PAYMENTS: Each payment to the Secured Party is to be made on the due date in immediately available freely transferable funds free and clear of any restrictions or conditions


13. SET OFF: The Debtor authorises the Secured Party to apply (without prior notice or demand) any credit balance of the Debtor on any account in any currency and at any of the Secured Party's offices in or towards satisfaction of any indebtedness then due to the Secured Party under a Relevant Document and unpaid.


14 MEMORANDUM OF MORTGAGE: Where a property has been mortgaged by the Debtor to the Secured Party as shown in the Schedule this instrument is collateral to and secures the same moneys as any Memorandum of Mortgage bearing even date herewith made between the Debtor and the Secured Party over the said property and the two securities shall be deemed also to be a default under the other of them but so nevertheless that the Secured Party may exercise its rights, remedies and powers under either of the securities separately or under both thereof concurrently.


14.1 AGREEMENT TO MORTGAGE:  this instrument is deemed by the parties hereto be an agreement to mortgage and the Secured Party shall be entitled at any time to call upon the Debtor to execute a registrable mortgage or charge, or further mortgage or charge as the case may be over the property shown in the schedule.. Such mortgage or charge shall be prepared and registered by the Secured Party at the cost of the Debtor and shall contain such terms and conditions and have such priority as may reasonably be required by the Secured Party.


15. INSPECTION:  The Debtor shall permit the Secured Party or the Secured Party's authorised agent from time to time to inspect and test the Secured Property and for such purposes to enter upon any premise where the same may be at any time and the Debtor will give and afford to the Secured Party or such agent all reasonable assistance to enable the Secured Party or such agent to inspect and test the Secured Property.


16. NOTICES:  Any notice or other communication required to be served on the Debtor must be in writing and is sufficiently served or given if:

[a]           It is delivered to that person or that person’s agent; or

[b]           It is left at that person or that person’s agent usual or last known place of abode or business; or

[c]           It is posted in a letter to that person or that person’s agent by name at that place of abode or business; or

[d]           It is given by facsimile, electronic mail, or other similar means of communication.


17. COSTS: The debtor will pay all costs or losses (including any tax) incurred by the Secured Party including:

[a]            The reasonable costs of all enforcements action, which may be taken by the Secured Party as a result of any default;

[b]            The preparation, negotiation, registration and release of each relevant document (including arrears letters and pre-possession notices);

[c]            Legal and valuations costs and expenses;


18. REMEDIES AND WAIVERS:  No failure to exercise, or delay in exercising a right on the part of the Secured Party shall operate as a waiver of that right.  The Secured Party shall not be deemed to have waived any of its rights hereunder unless such waiver shall be in writing.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.


19. DEFAULT RATE: If an Event of Default occurs:

[a]            Interest will be paid by the Debtor in respect of the amount of the default, and while the default continues until the default is remedied to the satisfaction of the Secured Party; The lender has the right to capitalise any default interest, and if capitalised, to bear interest at the interest / default rate

[b]            Interest at the Default Rate must still be paid after any Judgment in favour of the Secured Party for payments due under this Agreement until the judgment is satisfied.

This clause does not affect any other legal or equitable right of the Secured Party.


21. PRIVACY: The Secured Party may provide whatever information concerning this Security Agreement and the Collateral to any persons the Secured Party believe in good faith are entitled to that information under the PPSA, if that person have requested the information for any reason contained in Section 173 of the PPSA, or for the purpose of enforcing any debt collection action.



The following credit fees and charges (which are not included in the initial unpaid balance) are, or may become, payable under, or in connection with, the contract. Your credit contract may allow the creditor to vary this/these fees and charges.

*        LINZ Registration fees               $210.00

*        PPSR filing fees                        $  16.10

*        Replacement Security fee         $150.00

You must pay all legal and other costs associated with the preparation, execution, registration and discharge of documents necessary to give full effect to the security



In the event of a default in payment and while the default continues you must pay the default interest charges. In the event of a breach of the contract or on the enforcement of the contract, the default fees specified below are payable. Your credit contract may allow the creditor to vary theses fees & charges

Default interest is  5.00% per annum above your base rate, charged at a daily rate on the arrears to date. Default interest is charged to your account Weekly.


Default fees:

$15                    Arrears Letter                         

$50                    Repossession Authority                         

$10                    Dishonour Fee                          

$10                    Insurance Default                      

$30                    Notice of Default                      

$30                    Address Location Costs                 

$30                    Collection Fee                        

$5.75 p/day       Storage Charges                        

$50                    Pre-Possession Notice                  

$50                    Legal Preparation                      

$745                 Legal Expenses Property Law Notice

$50                        Additional advance fee 

In the event of a breach of contract or the enforcement of the contract you must pay, on demand, the creditor’s solicitor’s costs for legal services arising from or relating to any default under the contract or the enforcement or exercise or attempted enforcement or exercise of any of the creditor’s rights and remedies under the contract. You must also pay all legal and other costs associated with the enforcement and attempted enforcement of all documents necessary to give full effect to the security.                   



Establishment fees are $350.00 



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