The investment opportunity offered is a Contributory Nominee Mortgage Investment.
Contributory Mortgage Investments are defined by the Securities Act (Contributory Mortgages) Regulations 1988. The Regulations are administered and enforced by the Financial Markets Authority (an independent Crown entity).

Contributory Nominee Mortgage Investments

Contributory Mortgages are a form of investment which has the following features:
• Usually one or more investors known as contributors who have pooled funds to lend to a borrower.
• The Investors/ contributors have the mortgage instrument issued in either their own name or in the name of the Nominee company which is secured by a first registered mortgage over the property being lent on (land and buildings).
• The loan and the investment is managed by a separate company to the nominee company called a contributory mortgage broker who manages the loan and investment on behalf of the investor.
The nominee company and contributory Mortgage broker company are bound by a number of Legal requirements. Only companies registered under the act may offer contributory mortgages to investors, these companies are known as contributory mortgage brokers. SCFL Management is registered as a broker under the Regulations.

Some of the requirements contributory mortgage brokers must comply with under the act are:

• Operate a subsidiary "Nominee" company and trust account for receipt of contributor's funds. This Nominee Company also holds the mortgages on behalf of the investors/contributors (if not in the contributor's own name or names).
• Provide a full set of information and disclosure documents about the investment opportunity to the investor prior to them investing.
• Provide formal notification during the term of the investment, in the event that the borrower does not perform or adhere to their contractual arrangements.
• The contributory mortgage broker and its nominee company are required to undergo quarterly audits of its documentation, lending practices and procedures. A full financial annual audit is also undertaken.

This is done on behalf of SCFL by its auditors Staples Rodway Auckland.
Audits are designed to provide protection for contributors and ensure that all requirements of the act are being met.

Southern Cross Group of Companies:

SCFL Management Limited and SCFL Nominees Limited are subsidiary companies of Southern Cross Finance Limited and have been established for the purposes of offering Investors attractive investment opportunities by way of First Ranking Mortgage backed Securities.

SCFL Management is the "Broker" company which identifies suitable investments and then supervises the process for Investors from inception through to maturity.

SCFL Nominees is the associate "Nominee" company which operates a Trust Account (at ASB Bank) for the purpose of holding, tracking, and distributing Investors funds.