Assignment 2 Debenture

a) Allied finance limited
Date of issue 9 December 1995
term Maturity date
3 months 9 March 1996
6 months 9 June 1996
9 months 9 September 1996
1 year 9 December 1996
18 months 9 June 1997
2 years 9 December 1997
3 years 9 December 1998
4 years 9 December 1999
5 years 9 December 2000
Kiwi Bond
Date of issue is the date of receipt of an application (including payment).
Maturity date can not be specify it depend on date of issue
term to maturity
6 months
1 year
2 years
4 years

b) The maximum value of securities offered under the prospectus for Allied Finance Ltd. are $20,000,000.
For Kiwi bond, bondholder will not be permitted to hold more than $250,000 of Bonds of any issue
authorised in terms of this prospectus.

c) Allied Finance Ltd. Redemption and transferability features are:
At call investment are repayable within 24 hours of your giving notice to Allied and Allied reserves the
right to repay at call investments at any time.
On the death of a sole investor Allied will repay all or part of any investment to executors or
administrators of an estate immediately probate or letters of administration are presented.
Where a life tenant of an estate dies and the trustees wish to distribute the assets repayment of all or part
of the investment will be made three months after Allied receives written notice.
Up to 10% of the total amount invested by superannuation funds may be withdrawn in any one calendar
year. Three months' written notice will be required.
Kiwi Bond
The notice of repayment may be given in respect of either the total amount of the bond held or for a
minimum of $1,000 and multiples of $100 thereafter. The balance of any bonds after partial repayment
must not be less than $1,000.
The total amount of bonds held or part thereof shall be transferable at any time to another eligible party
subject to the conditions detailed under heading "Applications". The Registers, however, will close for
registration of transfers 10 days prior to each quarterly interest date.

d) Ranking of securities for Allied Finance Ltd.
1. There are no securities that rank in point of security ahead of the securities being offered.
2. Debenture stock of $87,467,019 issued under previous prospectuses ranks equally with the securities
being offered.
The estimated expenses of and incidental to the issue of the debenture stock pursuant to this prospectus are
$30,000 exclusive of brokerage.
Kiwi Bond
There are no information disclosed for ranking
Commission rates are depend on invest amount
Terms of bonds Commission Rates
6 months 0.25%
1 year 0.375%
2 years 0.50%
4 years 0.50%

e) Allied Finance Ltd.
The trustee (The New Zealand Guardian trust Co. Ltd.) does not guarantee the repayment of the
investments or the payment of interest.
The trust Deed allows Allied Finance Limited and its subsidiaries(Allied) to give other securities within
stated limits which rank ahead of secured investors, but only in these circumstances :
For financing the costs of acquisition, construction or improvement of any asset, (but the prior charge
must be over the asset and must not exceed the cost of the asset).
Retaining the existing charges of any company which is bought by Allied Finance and becomes a party to
the Trust Deed as a charging subsidiary (but the amount is limited to the amount secured by any charge
given before the company became a subsidiary of Allied).
For Borrowing on the security of Financing Agreements held by Allied provided that such agreements are
then not taken into account as assets or liabilities of Allied as the base for any other borrowing.
No information disclosed for Kiwi Bond.

f) Both securities have their own source of risk. Kiwi Bond is more secure than Allied Debenture because
it issued by New Zealand Government, but the rate of return for Kiwi Bond will be lower than Allied
Debenture. The risk that both securities investors will be facing are:
1. Interest rate risk, It is the change in the price of a security that takes place as a result of changes in
market interest rate. The prices of outstanding securities must change inversely with changes in current
market interest rates. When the market interest rate rises, the price of securities outstanding will be fall.
2. Inflation risk, as the payment for securities is fix. If inflation rise the value of the payment in real terms
declines as the price level rises.

The investors of Allied Debenture will face :
1. Call risk, the issuer have the option