Document ID: chunk:federal_register_of_legislation:C2009A00046:clause:2_51b
Version: federal_register_of_legislation:C2009A00046
Segment Type: clause
Provision Reference: sch 2 cl 51B
Character Range: 13731–15698

51B  Monthly subsidy—shared liability between partners for subsidised loans if partner dies etc.

Scope
 (1) This section applies to a subsidised borrower (the surviving borrower) if:
 (a) the borrower's partner (the deceased borrower) has died; and
 (b) at the time of death, item 1 of the table in subsection 51A(2) applied to the surviving borrower and the deceased borrower because:
 (i) they were parties to a single subsidised loan; and
 (ii) each of them was a subsidised borrower in his or her own right; and
 (c) with effect from the time of death, the entitlement of the deceased borrower to the payment of subsidy in relation to the subsidised loan is transferred to the surviving borrower under section 60 (joint interest in land) or 61 (inherited interest in land).

Loan capital rules
 (2) At and after the time of death:
 (a) item 1 of the table in subsection 51A(2) continues to apply to the surviving borrower, in his or her own right, in relation to the subsidised loan; and
 (b) for the purposes of that application, the amount of the surviving borrower's loan limit at a particular time (the loan limit time) is the average of the amounts of the loan limits that would apply in relation to the surviving borrower and the deceased borrower at the loan limit time if:
 (i) the deceased borrower were still alive, and had the loan limit (under subsection 51(2)) that would have applied to him or her at the time of death if he or she were the sole party to the loan; and
 (ii) the surviving borrower had the loan limit (under subsection 51(2)) that would apply to him or her at the loan limit time if he or she were the sole party to the loan.
Note: This section applies only to the surviving borrower's entitlement to subsidy in his or her own right, and not to the entitlement transferred from the deceased borrower (as mentioned in paragraph (1)(c)). For how the transferred entitlement applies to the surviving borrower, see sections 64 and 65.