SMSFs warned on quirks with personal guarantees, contributions
Given that COVID-19 could see increased instances of lenders calling upon personal guarantees for SMSF loans, an industry lawyers has outlined where a contribution might arise in these types of scenarios.
Given the economic circumstances and the impact of COVID-19, there may be situations with limited recourse borrowing arrangements where the bank or lender calls upon the guarantee where there are defaults on repayments, said DBA Lawyers special counsel Daniel Butler.
Read more at SMSF Adviser.
