permitted, subject to a maximum of four tranches. If the loan is to be drawn in tranches, no capital repayments are to be made until the loan is fully drawn, which must be within 1 year of the date of the EFG loan agreement. The first tranche must be drawn no later than 6 months after the date of the EFG loan agreement. Failure to draw the loan within this period will necessitate the submission of a new application. Capital Repayment Holidays Capital Repayment Holidays, in multiples of 3 months, are permitted up to a maximum of 3 years. Subsequent Capital Repayment Holidays may be sanctioned after initial drawdown. Repayments EFG loans must be repaid on a capital only (straight line) basis with interest being debited quarterly to a separate account held at the same branch as the loan account. Capital and interest loans (actuarial) or interest only (bullet) repayment loans are not permissible. Loan repayments may be monthly or quarterly. Security General Before offering a borrower an EFG facility, the Bank must be satisfied that it would have offered conventional finance but for the lack of security. Pledging of Personal Assets The Bank must be satisfied that all available personal assets have been pledged for conventional facilities, before considering lending under EFG. It is the Bank’s decision as to whether or not personal assets may be considered available as security for conventional lending. The Bank must be satisfied that the applicant is personally committed to the venture, and is not using EFG as a means of avoiding pledging personal assets. In the event that conventionally chargeable assets are jointly owned with a spouse or third party who is not directly connected to the business any refusal by that spouse/third party to charge those assets is sufficient to render these assets as not being available for conventional lending. For our purposes, a direct connection with the business is defined as partner, director or shareholder with 20% or more of the share capital. The same principle applies where an occupier of a conventionally chargeable asset refuses to grant consent to a charge. If the applicant is not prepared to allow all their available personal assets to be used to secure conventional lending, this renders them ineligible for EFG. In exceptional circumstances, personal guarantees may be taken in respect of EFG loans. The Bank is not permitted to take a charge over