Instalment warrants

Arrangements used to buy an asset by instalments. Since September 2007, SMSFs have been permitted to use instalment warrants and similar means to buy geared investments – provided strict provisions are met including that an asset being purchased must be held in a trust (separate from the SMSF) until the final payment is made, and any recourse by the lender in the event of default is limited to the asset being purchased. (See Charge over SMSF assets).
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