---
title: "Small business default notice checklist"
url: "https://ailawframework.com/precedents/banking-and-finance/small-business-default-notice-checklist"
type: "precedent"
site: "AI Law Framework"
id: "a3-small-business-default-notice-checklist"
area_id: "A3"
kind: "notice"
ai_level: "red"
version: 1
task_ids: ["A3-T20261018-37"]
law_stated_as_at: "2026-10-22"
---

# Small business default notice checklist

> Checklist and notice shell for a small business loan under the 2025 Banking Code, before a demand for full repayment or other default action. The officer settles every sentence that is sent.

Canonical page: https://ailawframework.com/precedents/banking-and-finance/small-business-default-notice-checklist  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Notice. A formal notice to serve or publish.
- Practice area: [Banking & Finance](https://ailawframework.com/precedents/banking-and-finance.md)
- Jurisdictions: Australia
- AI level: Red. You write the text. The tool writes nothing into the document. Where permitted, it may check, clarify or collect data, and anything it checks or collects is verified.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for Australia.

## When to use it

Use when a Code subscriber is considering enforcement of a small business loan for non-payment or for another default listed in the Code.

## Used for these tasks

- [Prepare the default notice before enforcing a loan or mortgage](https://ailawframework.com/practice/banking-and-finance/prepare-the-default-notice-before-enforcing-a-loan-or-mortgage.md)

## How AI may be used

The tool inserts the overdue amount and the dates from the ledger the officer supplies, and the officer decides whether a shorter notice is permitted and writes the notice.

**AI may:**

- Insert the date of the missed payment and the overdue amount from the ledger.
- Add 30 days to the proposed notice date and show that date for the officer to check.

**AI must not:**

- Do not decide that paragraph 84 or 89 allows shorter notice or no notice.
- Do not use this notice for a consumer loan. The paragraphs read are about small business loans.
- Do not threaten enforcement in words the officer has not approved.

**The lawyer checks:**

- Apply the definition of Small Business in the Code. It was not copied here.
- Paragraph 82: no less than 30 days' notice of the payment failure before a demand for full repayment or enforcement proceedings, unless paragraph 84 applies.
- For a non-payment default, paragraph 87 lists the defaults and paragraph 90 requires materiality. Paragraph 88 then requires a notice of the grounds and no less than 30 days to remedy where the default can be remedied, unless paragraph 89 applies.

## Authorities

- [Australian Banking Association, Banking Code of Practice (2025), paragraphs 82 to 90](https://www.ausbanking.org.au/banking-code/)

## Official form

[Official form](https://www.ausbanking.org.au/banking-code/)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/banking-and-finance/small-business-default-notice-checklist and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*