Information for loan recipients
If your application is successful you will receive a hardcopy notification pack from Arts Tasmania in the post. Please ensure that you keep Arts Tasmania up to date if your postal address changes whilst waiting for notification.
The notification pack may include the following documents:
- A confirmation letter from the Minister for the Arts (if applicable)
- A confirmation letter from the Director of Arts Tasmania
- A loan agreement for you to sign
- An electronic funds transfer (EFT) form for you to complete
- A direct debit (DDR) form for you to complete
If your loan requires security, a loan agreement may not be included, as the agreement will need to be drawn up by Tasmania’s Crown Solicitor. As such, the documents may take some weeks to draw up, and will incur a cost which must be met by you. This cost usually ranges from $200 - $500.
Checking your agreement
Please read your agreement carefully, it contains information relating to the Conditions of Loan and details any special conditions that may apply to your investment.
Once you have checked your agreement for special conditions, please confirm acceptance of your investment by signing and dating the deed/agreement and returning it to Arts Tasmania at 146 Elizabeth Street, Hobart. Please include your completed EFT form and DDR form.
Your signed agreement and other required documentation should be returned to Arts Tasmania within 21 days of receipt. If we do not receive the signed agreement within this time, the offer will lapse without further notice. If you believe you will have difficulties in returning the agreement within 21 days please contact Arts Tasmania on 03 6165 6666 as soon as possible.
We suggest that you retain a copy of the agreement for your records.
Special conditions need to be met before your loan funds can be paid. If any special conditions apply to your investment, they will be listed on the schedule of the agreement. Special conditions could include, for example, a request for more information or a revised program and/or budget.
If you have special conditions you need to meet before your loan funds can be paid, you can provide this information to Arts Tasmania when you return the signed copy of your agreement.
If you would like to discuss a special condition that has been placed on your loan, please contact a program officer on 6165 6666.
A special condition often applied to loans of $10 000 or more is the requirement to provide security. The costs applicable to the lodgement of security will be your responsibility and must be paid before the loan funds are advanced. Security may be drawn up and registered for Arts Tasmania by the Crown Solicitor. Charges for this process are incurred by you as the applicant. They can range from $200 to $500.
There are several kinds of security:
A Personal Property Security Interest registers an interest in personal property to secure the payment of the loan, or a charge over property. Personal Property Security Interest is generally any property except real estate.
A guarantee is made when a third party, the guarantor, agrees to pay back debt if the borrower can't or won't.
When a borrower falls behind with their repayments Arts Tasmania will send a written notice (a default notice) to both the borrower and the guarantor. If the borrower does nothing about the default notice then Arts Tasmania may initiate legal action to have the debt repaid. If this does not resolve the matter then Arts Tasmania can take legal action against the guarantor and they will have to repay the borrower's debt.
A mortgage is a legal agreement that protects Arts Tasmania by giving it the right to be paid out of the cash proceeds from the sale of the borrower's specific assets identified in the mortgage. If property is offered as security then a mortgage is taken over it. Arts Tasmania will register its interest in the property. Property that is mortgaged stays with the borrower but they do not have a clear title over it and cannot sell it without the Arts Tasmania's consent.
A caveat is a document any person with a registrable interest can lodge with the titles office to ensure property is not sold without their knowledge. Should a borrower default on their Loan, this ensures a lender gets its money before the asset is disposed of (sold) and may be the basis for collection procedures.
The Loan agreement entered into with Arts Tasmania is a registrable interest and a caveat can be lodged against property to serve as security against that Loan. It is not a mortgage; it is a note on a certificate of title that indicates someone other than the owner has an interest in the property which will prevent transfer in title until any claim has been determined.
Release of loan funds and loan repayments
Payment of loan funds will occur once all your completed paperwork has been processed by Arts Tasmania and all Conditions of Grant have been met. Payment of loan funds will occur electronic funds transfer within 10 working days.
This paperwork includes:
- an original, signed copy of the agreement
- an electronic funds transfer (EFT) form
- a direct debit request (DDR) form
Arts Tasmania is only able to provide the loans at the relevant low interest rate if all loan recipients pay by the specified due date, and an automated repayment arrangement is in place to ensure that this continues to be the case. Your Direct Debit Authority will arrange for automatic deductions from your nominated bank account on the nominated day of each month.
An instalment notice will be posted to you at the beginning of each month. As your repayments will be made by Direct Debit, you may disregard the tear-off payment section at the foot of the notice unless you wish to make an additional repayment to your loan at a Service Tasmania outlet.
Please contact Amanda Spargo, Finance Officer, on 03 6165 5196 if you would like to change your nominated bank account, or make greater payment amounts.
Promoting your funded activities
Wherever possible, please publicise any events associated with your investment, to highlight your own project and raise the profile of the arts and movable cultural heritage within Tasmania generally.
Artists’ Media Kit
Arts Tasmania has prepared a comprehensive Artist’s Media Kit for you to use. The kit provides lots of tips and useful information on how to get free publicity. A copy of the kit can be downloaded from: www.arts.tas.gov.au/mediakit
Please send a copy of your media release to: email@example.com
You are required to use the Tasmanian State Government logo on all your promotional material, preceded by the words “Supported by”. The logo can be downloaded from: www.arts.tas.gov.au/logos
Written credits should include the phrase: “This project was assisted through Arts Tasmania by the Minister for the Arts”.
Notification of events
Arts Tasmania would like the opportunity to send representatives, especially members of the Tasmanian Arts Advisory Board and its panels, to any events associated with a funded project. Invitations to events should be forwarded to Arts Tasmania by mail or email, with plenty of notice, specifying the staff or members you wish to invite.
Changing your plan or budget
We understand that circumstances can change and that you might need to vary your project, program or budget. You must always discuss a planned change with a program officer before it occurs as you may be required to seek formal approval from the Tasmanian Arts Advisory Board. You should not proceed with a planned change until you have received written confirmation from Arts Tasmania. In some cases the Tasmanian Arts Advisory Board may need up to six weeks to consider the change before the project/program proceeds.
Reasonable operational variations, such as ordinary increases in costs from the planning stage, may not require a formal variation approval from the Tasmanian Arts Advisory Board. In cases where changes are not material they can be approved by a program officer immediately. Where an urgent change is required, the Tasmanian Arts Advisory Board will take into consideration the funded timelines.
The Tasmanian Arts Advisory Board will not approve variations retrospectively. If you provide a variation in your acquittal that has not been approved, the Tasmanian Arts Advisory Board may require you to return relevant funds.
Payment of any loan is dependent on your acceptance of the formal Conditions of Loan that are contained in the agreement that you are required to sign prior to receiving the loan funds.
Amongst other things, these conditions relate to how the funds can be spent and how they need to be accounted for, acquittal requirements, variation approvals and acknowledgement requirements.
In summary, in signing the loan agreement you undertake to:
- repay the loan and interest in the set monthly repayments, until the loan is repaid in full
- pay a dishonour fee of $25 if any payment is dishonoured. This fee will be collected in addition to the dishonoured instalment amount
- keep the items purchased with the loan proceeds in good repair and condition and not to dispose of them without the written consent of the Minister whilst the loan is still current;
- keep the items purchased with the loan proceeds insured
- allow access to Arts Tasmania to inspect the goods upon reasonable notice
- notify of any change of address within seven (7) working days (noting that where loan recipients leave Tasmania permanently, they are required to repay the loan in full)
- apply the funds to the purpose approved
- submit financial statements to Arts Tasmania within six months of the provision of the loan noting that accounts may be subject to detailed inspection under the Financial Management and Audit Act 1990
- identify the grant separately in your financial statements
- provide a detailed statistical and financial acquittal report on the funded project or program within three months of its completion or the end of the grant period (see acquitting your grant)
- provide Arts Tasmania, in writing, with any information requested relating to the project/program funded
- seek approval from Arts Tasmania for material changes in the budget or program before implementing them (see changing your plan or budget)
- prominently acknowledge financial investment from Arts Tasmania for the project/program. This acknowledgment should appear in reports, media releases, posters, newsletters, brochures, advertisements, catalogues and other material
- provide Arts Tasmania with comprehensive details and adequate advance notice (at least two weeks) of events related to the funded program or project
- observe any special conditions included in the assessment of the application
- acknowledge that acceptance of the grant does not commit Arts Tasmania to future funding
- give access to the Auditor-General for Tasmania or their nominee to all financial statements and records relating to the use and expenditure of the grant upon reasonable notice in writing first being given
- complete the project/program within the time frame as stated in the application and as agreed to by Arts Tasmania
- warrant that the organisation is financially solvent. The onus is on applicants to satisfy Arts Tasmania of their financial viability to meet the contractual obligations. An applicant should not proceed with an application if they are unable to provide acceptable evidence of their organisation’s financial viability.
Acquitting your investment
If you receive, or have received a loan, you will be required to complete an acquittal report within three months of the project or program’s completion. Arts Tasmania will accept acquittal reports that have been formatted for federal funding bodies, provided they include all necessary information.
If you have an overdue or incomplete acquittal you will not be able to apply for further investment from Arts Tasmania.
You can download the current acquittal form and budget template from www.arts.tas.gov.au/forms
Your acquittal will include:
A financial report - a statement of exactly how you spent the loan. This should relate directly to your original budget.