Document ID: chunk:federal_register_of_legislation:C2004A03717:body:0:p89
Version: federal_register_of_legislation:C2004A03717
Segment Type: other
Provision Reference: 
Character Range: 228502–231385

than the scheduled instalment, the whole of the amount will be credited to the subsidised advance loan account;
                    (b) where there is more than one loan tier and more than one interest rate applicable to the specified portfolio asset and the amount paid is equal to or less than the sum of the scheduled instalments, the whole of the amount will be credited to the subsidised advance loan account by apportioning the amount paid to each tier in the ratio of the scheduled instalments;

SCHEDULE 2—continued

Provision   Modification
                (c) where an amount is paid in excess of the scheduled instalment, or in excess of the sum of the scheduled instalments where there is more than one loan tier, for credit to a subsidised advance loan account that is in arrears, the excess amount will be credited or apportioned to the subsidised advance loan account in accordance with paragraph (a) or (b) as appropriate; and
                (d) where an amount is paid in excess of the scheduled instalment, or in excess of the sum of the scheduled instalments where there is more than one loan tier, and paragraph (c) either does not apply or has been satisfied, the amount of the excess will be treated as an excess credit and, if it is to be held under a loan interest offset arrangement:
                    (i) where there is only one loan tier, the excess will be credited to the subsidised advance loan account to reduce the balance on which interest is charged; or
                    (ii) where there is more than one loan tier, the excess will be credited to the subsidised advance loan account and apportioned to each tier of the loan in the ratio of the loan limits to reduce the balance on which interest is charged in each tier.",
                (c) add at the end the following subregulation:
               "(2) For the purposes of subregulation (1):

SCHEDULE 2—continued

Provision              Modification
                           (a) 'loan tier' means an amount outstanding under a specified portfolio asset, being part of a balance of an advance made by the Corporation under section 20, or of a contract of sale or expenditure by the Corporation under section 18a, 29aa or 31, of the Act, as in force before the commencement of section 10 of the Defence Service Homes Amendment Act 1988, in respect of which a particular interest rate is payable;
                           (b) 'scheduled instalment' means the monthly amount that a purchaser or borrower has contracted under a specified portfolio asset to repay on the balance outstanding under a loan tier;
                           (c) 'arrears', 'balance', 'excess credit', 'limit', 'loan interest offset arrangement', 'prepayment', 'specified portfolio asset' and 'subsidised advance loan account' have the same respective meanings as in the agreement between the Commonwealth and