Settlement of SOCIÉTÉ GÉNÉRALE Litigation


Heritage Building Society Limited (Heritage) advises that it has reached a settlement of the legal proceedings brought against Heritage by Société Générale Australia Branch (SG).

SG has provided a securitisation warehouse for Heritage, HBS Trust No. 1. Following SG’s decision to withdraw from securitisation in Australia, certain demands were made of Heritage by SG and legal action was subsequently commenced on 19 August 2008 with Heritage being served with proceedings issued in the NSW Supreme Court by SG. Amongst the initial claims, which were subsequently amended, were claims for an increased margin to be payable to SG for the 2008 and 2009 financial years and a refinancing of the facility. Heritage denied the claims and defended the proceedings.

While the details of the settlement are confidential, the settlement involves the restructure and repricing of funding to HBS Trust No. 1 and SG discontinuing the proceedings.

While the ongoing funding costs of HBS Trust No. 1 will increase from December 2009, Heritage expects that its profit after tax for the 2009/10 year will exceed that of 2008/09, which was $25.5 million.

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

Generate a personalised Key Fact Sheet based on your loan amount, term and repayments. This tool is provided to help you compare home loans from Heritage with other financial institutions.