Nominee Company

The interest rate for the Nominee Company has remained at 9.0% for the August distribution.

With the difficulties faced by more Finance Companies over the last few weeks, the directors of the Nominee Company would like to remind investors of their current lending policy. Davidson Armstrong & Campbell Solicitors Nominee Co Ltd:

  1. DAVIDSON ARMSTRONG & CAMPBELL NOMINEES IS NOT A FINANCE COMPANY.
  2. Invests only in First Ranking registered mortgage securities in a mix of residential and commercial property.
  3. Invests only in property in New Zealand.
  4. Invests only to what are regarded as prudential levels against Independent registered valuations
  5. Disclose full information regarding investments to contributors.
  6. Aims to achieve competitive returns.

FAQs

1.
What Is A Solicitors Nominee Company? top
Under the Solicitors Nominee Company Rules, we are able to operate a Nominee Company which acts as a trustee holding securities for loans made on behalf of one or more contributors. This allows the pooling of clients funds to be lent to borrowers and secured by mortgage on land and buildings which means relatively small amounts of money can be invested at a reasonable interest rate, with the spreading of risk by dividing invested funds and spreading them across several loans.

2.
How Long Has The Company Been Operating? top
The present Nominee Company has been operating since 1983 when the partnership of Davidson Armstrong & Campbell, Solicitors, was formed. However, that company took over the operation of Davidson Mackie & Armstrong Solicitors Nominee Company Limited which in turn had taken over part of the operation of Lee Mackie Nominees Limited. The partners of Davidson Armstrong & Campbell have been involved in the operation of solicitors nominee companies and contributory mortgages since solicitors were empowered to do so over 25 years ago.

3.
Who manages the company? top
Davidson Armstrong & Campbell, Solicitors, are responsible for the operation of the company. The company operates from the offices in Northumberland Street, Waipukurau. Our mortgage manager, Stephen Smith, handles the day to day aspects of investing, collection and payment of interest and controls the data processing side of the company. All lending decisions are made by all of our partners. Initially, the lending proposition is dealt with by one partner who makes a recommendation concerning the proposition which is then referred to the other partners, who ensure that all of the criteria relating to the Solicitors Nominee Company are met, and that they are satisfied that the proposition is suitable before the loan offer is made. Your funds are lodged within the Trust Account of Davidson Armstrong & Campbell. When a suitable lending proposition is found, the details of that proposition are sent to you for your approval including a copy of the valuation of the property over which the funds lent will be secured. You must at that point sign an authority and return it to Stephen Smith at Davidson Armstrong & Campbell if you are happy for your funds to be invested. An amount, term, and interest rate are specified on the authority. Mortgage documentation is prepared and signed by the borrower and no funds are advanced until we are completely satisfied that the security documentation and all insurance requirements have been met. You will receive interest on your funds at the Nominee Company rate, which at present is 9% to you from the time the advance is made. If your funds are not immediately invested they will be held in the interest bearing section of our Trust Account in the ANZ Bank and you are credited with interest at current bank rates less a small commission. The borrower does not have access to the identities of the lending contributors.

4.
What are the Criteria For Lending? top
The Solicitors Nominee Company Rules specify that we can only lend up to a registered Valuer’s recommendation on any property except in certain other limited circumstances. The Valuer’s recommendation does not go above two-thirds of his current valuation of the property, and in some cases is 50 or 60% of the value of the property. These recommendations must be rigidly adhered to and the valuations must be current. You receive a copy of the valuation of any property used as security for your funds.

5.
What is the Interest Rate? top
At present, our interest rate is 6% per annum to you. Our current lending rate is 9%. Interest is payable quarterly on the 1st days of February, May, August and November in each year and the borrowers as usual have 14 days in which to make payment. We insist on payments being by automatic payment, but very occasionally an automatic payment is not made and the funds come in by cheque. Payment to you of the interest or re-investment of the interest is usually made by the 20th of the month in which the interest is received. In the unlikely event that an interest instalment is not made within 14 days of the 1st of the month, a penalty interest rate of 7% applies and that penalty interest rate is credited to your account on receipt. There is provision in each mortgage document for the interest rate to be altered during the course of the mortgage. In the past, we have been slow to change interest rates because rates fluctuate frequently and we make sure that a very definite trend has been established before we suggest a change of rate.

6.
What is the term Of the Investment top
Your funds are invested in our Nominee Company for the term of the mortgage. The normal term is 2 years although there is some variation in term from time to time and there is the occasional early repayment. If you approach us to withdraw your funds from a mortgage during the term of that mortgage, we cannot guarantee that we can have them back to you before the end of the term. We will however, attempt to replace your funds in the mortgage with funds from another investor, and if we are successful, you will have access to your funds.

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