A leading national property finance company has collapsed potentially leaving an estimated 10,000 residential, commercial and property investors in the lurch about the fate of nearly $300 million worth of deposits.
Deposit Power, which provided interim finance to property buyers, has closed its doors after the collapse of New Zealand’s CBL’s insurance, which was an issuer and guarantor of deposit bonds.
…A deposit guarantee is an alternative method of placing a deposit on a property [for those waiting for maturity or settlement of other assets]
Via the AFR:
Lot’s of counter-part risk there. Let’s see if it gets picked off or a lot of punters will suddenly find themselves without finance.
