Practice area
Banking & FinanceBanking and finance (lending, securities, project finance)
Facility, security and bond documents, and the registrations that make security effective. AI drafts and extracts; the lawyer checks the economics, perfection, priority and regulatory duties.
Key facts
- Tasks covered
- 26
- Tasks with a step-by-step checklist
- 5
- Local differences
- 2 jurisdictions where this area changes
Jurisdiction
Tasks
GreenLawyer reviewYellowClose supervisionRedLawyer-led
| Task | How AI is used | Human involvement | What the lawyer must review |
|---|---|---|---|
| Draft the facility agreement and term sheet from the agreed economics | Produce a first-draft facility agreement, term sheet and ancillary letters from the lender precedent and the agreed economics, and list missing clauses. | YellowClose supervision |
|
| Draft the security package: general security, mortgages and share pledges | Produce first-draft security documents from the term sheet and asset list, with a schedule of collateral and a list of description gaps. | YellowClose supervision |
|
| Draft PPSR-compliant general security agreements, mortgages and share pledges | Draft general security agreements, mortgages and share pledges from the term sheet and asset list, with a collateral schedule, enforcement terms and description gaps. | YellowClose supervision |
|
| Build the conditions-precedent checklist from the signed facility | Extract every CP, security-perfection step and evidence requirement from the executed facility and security documents into a checklist with owners and due dates. | YellowClose supervision |
|
| Prepare the security-register filing data sheet from the executed security | Pre-populate a filing data sheet from the executed security: grantor identifiers, collateral class, description and term. Do not transmit a filing. | RedLawyer-led |
|
| Prepare the PPSR filing data sheet from the executed security | Pre-populate a PPSR data sheet from the executed security: grantor identifiers, collateral class, description and term. Do not transmit or instruct the filing. | RedLawyer-led |
|
| Register a security interest on the New Zealand PPSR | Extract grantor, collateral class and priority facts into a registration instruction sheet. | RedLawyer-led |
|
| Map the lender's licensing and conduct obligations for this facility | From the facility type and the client's licences on the file, list candidate licensing, conduct and reporting obligations with document cites and open questions. | RedLawyer-led |
|
| Map the lender's ASIC, APRA, AUSTRAC and NCCP Act obligations for this facility | From the facility and licences on file, list candidate AFS, NCCP responsible-lending, APRA CPS 230/FAR, AUSTRAC AML/CTF and ASIC disclosure obligations. | RedLawyer-led |
|
| Review the existing finance documents and security package | From the permitted finance files, extract facilities, headroom, security, guarantees, intercreditor ranking and change-of-control restrictions into an issues table. | YellowClose supervision |
|
| Draft sustainability-linked or green-loan KPI schedules | Draft KPI definitions, sustainability performance targets, margin ratchet and compliance-certificate templates from the term sheet and chosen market principles. | YellowClose supervision |
|
| Draft lender Q&A responses from the information memorandum | From the IM and data-room extracts, draft answers to the lender Q&A list with document references and a list of questions that cannot be answered from the file. | YellowClose supervision |
|
| Draft bond or note documents: trust deed, agency agreement and pricing supplement | Produce first drafts of the trust deed, agency agreement, pricing supplement and offer sections from the term sheet, with a list of economic terms to match exactly. | YellowClose supervision |
|
| Draft bond or note documents: trust deed, agency agreement and ASX/ASIC disclosure | Draft the MTN deed poll, trust deed, paying agency agreement, pricing supplement and ASX/ASIC offer sections from the term sheet, listing economic terms to match exactly. | YellowClose supervision |
|
| Draft the intercreditor or subordination deed | Produce a first-draft intercreditor or subordination deed from the term sheet covering ranking, enforcement standstill, payment waterfalls and release mechanics. | YellowClose supervision |
|
| Draft a waiver, amendment or covenant-compliance certificate | Draft the amendment deed, waiver letter or compliance certificate from the facility, the requested change and the latest numbers supplied by the client. | YellowClose supervision |
|
| Map the lender's enforcement options on a borrower default | From the facility, security package and default facts, table enforcement options, standstill limits and documents still needed, with clause cites. | RedLawyer-led |
|
| Map the lender's enforcement options on default, including PPSA Part 4.3 | From the facility, security and default facts, table enforcement options (receiver, administration, DOCA, scheme), PPSA Part 4.3 points and winding-up priority. | RedLawyer-led |
|
| Extract the covenant package into a monitoring table | From the facility, list financial covenants, information undertakings, negative pledges and events of default with testing dates, definitions and cure periods. | GreenLawyer review |
|
| Compare the lender draft against the borrower's playbook | Redline the lender paper against the borrower's fallback positions and produce an issues list on security, covenants, MAC, prepayment and transfer clauses. | YellowClose supervision |
|
| Reconcile the security schedule to title and register searches | Compare the draft security schedule with supplied title searches and register extracts; list mismatches of names, asset descriptions and existing interests. | YellowClose supervision |
|
| Build a conditions-precedent tracker for a facility agreement | List CPs with document status and source references. | GreenLawyer review | Confirm satisfaction of each CP. |
| Summarise security and guarantee documents | Extract parties, secured property, priorities and release terms. | YellowClose supervision | Check PPSR registrations and priorities yourself. |
| Run AML/KYC document collection for a lending matter | Checklist missing KYC documents and flag inconsistencies. | YellowClose supervision | Make CDD determinations personally. |
| Extract conditions precedent into a closing checklist | Build a CP checklist with owners and status from the facility agreement. | GreenLawyer review | Lawyer checks against the agreement. |
| Compare a facility agreement against the APLMA/LMA-style precedent | Produce a departures table from the agreed precedent. | YellowClose supervision | Lawyer confirms commercial effect. |
| Summarise board minutes for privilege and disclosure risk in a financing | Flag passages that record legal advice before circulation. | YellowClose supervision | Lawyer decides on redaction. |
| Draft a PPSR registration and search summary | Summarise search results and registrations by collateral class. | GreenLawyer review | Verify against the PPSR results. |
| Prepare a lender AI-use policy note for a bank's legal team | Draft a note on confidentiality and verification for AI use. | GreenLawyer review | Lawyer approves. |
| Review a lender's use of AI in credit decisions | Map NCCP responsible-lending duties. | YellowClose supervision | Lawyer advises. |
| Draft AI-use clauses in an outsourcing agreement | Draft clauses. | YellowClose supervision | Lawyer settles to CPS 230. |
| Summarise a loan portfolio into a covenant tracker | Extract covenants. | GreenLawyer review | Verify. |
Firm-wide obligations
| Obligation | What it covers |
|---|---|
| Trust accounting & handling client money | Checks that apply across files. |
| Costs, billing & litigation funding | Checks that apply across files. |
| Client-facing & access-to-justice AI tools | Checks that apply across files. |
| Incoming evidence — deepfakes & synthetic documents | Checks that apply across files. |
| AI decision systems | Checks that apply across files. |
| Confidentiality & client information | Checks that apply across files. |
| AML/CTF — the practice as a reporting entity | Checks that apply across files. |
What changes in New Zealand
| Topic | What changes |
|---|---|
| Security interests | Register on the New Zealand PPSR under the Personal Property Securities Act 1999, not the Australian PPSA/PPSR system. |
| Borrower insolvency | Companies Act 1993 and related Companies Office processes. |
| Overseas lenders | Lending to an overseas person may engage the Overseas Investment Act 2005. |
| Limits on AI assistance |
|
- Personal Property Securities Act 1999 · 2026-09-23
- Personal Property Securities Register · 2026-09-23
- Companies Act 1993 · 2026-09-23
- Companies Office: legislation for our registers · 2026-09-23
- Insolvency Act 2006 · 2026-09-23
What changes in United States
Known here as: Banking and finance (lending, securities, project finance)
| Topic | What changes |
|---|---|
| Secured lending | UCC Article 9 as enacted in the state, not the PPSA. |
| Regulators | Federal (OCC, Federal Reserve, FDIC, CFPB) plus state banking departments. |
| Consumer financial data | Non-public consumer financial information can engage the Gramm-Leach-Bliley Act. Open the current FTC or prudential-regulator materials. |
- ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024) · 2026-09-23
- ABA Model Rule 1.6, Confidentiality of Information · 2026-09-23
- U.C.C. Article 9, Secured Transactions · 2026-09-23
- FTC: Gramm-Leach-Bliley Act · 2026-09-23
- FDIC: Law, regulations, related acts (FDIC, CFPB, Federal Reserve and OCC rules) · 2026-09-23
- Federal Reserve: How can I start a bank? (OCC national charters; state charters) · 2026-09-23
Precedents for this area
- PPSR security interest registration: official guide with grantor-detail verification step (Other, AI use Red). Completion guide for registering a security interest on the PPSR. It links to AFSA’s official steps and adds a grantor-detail verification step, timing rules and the defects that make a registration ineffective.
- General security deed (all present and after-acquired property) (Deed, AI use Yellow). Lender-side general security deed over all present and after-acquired property of a company grantor, drafted for the PPSA. It covers attachment and perfection, circulating assets, undertakings, enforcement, receivers, PPSA contracting out and the power of attorney.
- Conditions precedent checklist and satisfaction certificate for a facility agreement (Checklist, AI use Green). CP tracker for an Australian secured facility, organised by corporate, finance document, security perfection, KYC and financial conditions, with an officer’s certificate and a lender’s CP satisfaction notice.
- Guarantor independent legal advice letter and solicitor's certificate (Letter, AI use Red). Letter confirming independent advice to an individual guarantor, a solicitor’s certificate, and an interview file-note checklist, reflecting Garcia, the 2025 Banking Code guarantee protections and the National Credit Code.
- Clause and customer disclosure for AI-assisted credit decisioning (explanation and human review) (Clause, AI use Yellow). Three linked texts for lenders using AI in credit assessment: a model-supplier clause on explainability, testing and records; customer-facing disclosure aligned with APP 1.7 from 10 December 2026; and a human-review procedure.
- Prompt template with guardrails: extract the covenant package into a monitoring table (AI prompt, AI use Green). Ready-to-use prompt for an approved AI tool that extracts financial covenants, undertakings, events of default and reporting dates from a facility agreement into a cited table, with guardrails, a verification checklist and a file note.
All precedents for Banking & Finance. Signed-in accounts can read the full text.