Check a business purpose declaration before relying on it
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the loan application, the declaration signed by the borrower and the file notes, compare the stated purpose with the use of funds, the borrower’s circumstances and the security, check the declaration against the prescribed form and warning, and flag any sign that the credit is in fact for personal, domestic or household purposes or a residential investment.
- What the lawyer must review
- The lawyer decides whether the declaration can be relied on or whether the lender knew or had reason to believe the credit was for a regulated purpose, and advises whether the loan must be treated as regulated by the National Credit Code.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the loan application, the declaration signed by the borrower and the file notes, compare the stated purpose with the use of funds, the borrower’s circumstances and the security, check the declaration against the prescribed form and warning, and flag any sign that the credit is in fact for personal, domestic or household purposes or a residential investment. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the declaration is in the prescribed form and includes the warning.
- Compare the stated purpose with where the loan funds actually went.
- Flag any file note suggesting the lender knew the purpose was personal or household.
Sources
- National Consumer Credit Protection Act 2009 (Cth) Schedule 1 (National Credit Code) — AustLII · 2026-10-18
- Legal Services Commission of SA Law Handbook — What credit contracts are regulated by the NCC? · 2026-10-18
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.