1.  Definition of Hardship

 

CDF Community Fund defines hardship as a situation in which an individual is temporarily unable to make repayments, on debts they may have, due to unforeseen circumstances. As a result, it may be necessary to provide investors within CDF Community Fund access to their funds where there is an ‘exceptional circumstance’ that will or could lead to financial hardship.

 

2. Accessing Hardship

 

Where we have been notified that an investment in the Fund must be repaid or redeemed to alleviate financial hardship the ASIC Instrument and APRA Banking exemption No. 1 of 2021 (APRA exemption) permits an investment in the Fund to be repaid or redeemed without 31-days of notice. However,CDF Community Fund must be satisfied that the investor is suffering or would suffer financial hardship.

 

An early repayment or redemption by the Fund must be:

 

• made following a written request from the investor to the Fund on the grounds of financial hardship, and
• meet the described ‘Exceptional Circumstances’ below.

 

The ‘Exceptional Circumstances’ that may lead to hardship are:

• Sudden and substantial medical expenses or significant health or medical problem/s.
• Death in the family.
• Natural disaster.
• Litigation or other unforeseen legal expenses; or
• Other factors resulting in unforeseen change in the investor’s capacity to meet their payment obligations to third parties or to sustain their usual living conditions, whether through a reduction in income or through an increase in non-discretionary expenditure.

 

Circumstances that are not considered to be ‘Exceptional Circumstances’ by the Community Fund are:

 

• If the hardship is not financial in nature.
• If the hardship has not yet occurred and will not likely occur within 31-days after the request for payment or before the maturity of a fixed term investment.
• If the investor requiring an early repayment for non-hardship reasons, (e.g., to make an investment elsewhere with the funds, or as discretionary spending).
• If the investor could be financially supported by some other means if the early repayment is not made (e.g., if an investor has been made redundant from his or her employment but could sustain himself or herself from the redundancy pay for a period of at least 31-days or until the fixed term investment matures).
• If the evidence of hardship provided by the investor is contradictory or incomplete; or
• The investor is otherwise unable to demonstrate to the Fund (acting reasonably) that he or she is or will likely suffer hardship if the early repayment is not made.

 

CDF Community Fund may require additional information at receipt of a written request by an investor to access the Hardship Policy.