Until recently, Magsons Hardware Ltd (as Mitre 10 MEGA Henderson) managed to recover a large amount of debt after the collapse of Starplus Homes, thanks to clauses in the documentation allowing Magson to register Equitable Mortgages on several of the many real estate properties owned by Starplus at the time of its fall. A loan agreement, also known as a long-term loan, on-demand loan or loan contract, is a contract that documents a financial agreement between two parties, one being the lender and the other the borrower. The appeal failed, as the presiding judge put it: “The distinction is made between the immediate creation of a tax for each client-owned country, on the one hand, and an agreement [of the client] to grant a mortgage at a later date upon request.” Note, however, that you should be careful about the wording used. In a recent case (Building Choices Ltd/Carpe Diem Contracting Ltd (2015) NZHC 1266), the applicant invoked clauses relating to its right to apply for a mortgage if deemed necessary. I even encountered a situation where the local plumber had included a mortgage agreement in his terms and conditions of negotiation. Now, before the “no” vote shouts that such a mortgage is almost impossible for a product supplier to reach an agreement, remember that almost all the major construction suppliers and many suppliers connected in the construction game have been using these clauses for a few years in their credit documentation and with real success. A mortgage must not be signed and registered at the time of the credit relationship. All you need is that the corresponding clauses are inserted into your CGs at the time of registration so that you are immediately entitled to the mortgage if you need a mortgage. This can be qualified by inserting the words in case of default, in order to make acceptance more attractive to the debtor (borrower). A valid mortgage agreement should be faced with the simple right to apply for a mortgage.