What is Enhanced Debenture Stock – in detail?
100% of the Enhanced Debenture Stock, as covenanted in our Trust Deed, is invested in insured mortgage investments, or held in cash in a separate bank account pending insurable investments. All mortgage securities obtained from advances from this fund are insured against capital loss through policies underwritten by certain syndicates at Lloyd’s of London (subject only to terms and conditions of the policy). 100% of all investments currently using the funds invested in the Enhanced Debenture Stock have a Loan to Value Ratio (LVR) of no more than 66.67% of the registered valuation. This is also a covenant under the Trust Deed and a condition of the insurance policy. 66.67% LVR is a conservative loan to value ratio and many Banks and other Finance Companies exceed these ratios. In certain cases, with the insurer’s prior approval, a loan to value ration of 75% may be accepted.
