Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128ac:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128AC (pt 2/3)
Character Range: 1223156–1225789

in the case of a hire‑purchase agreement—the property that is the subject of the agreement; and
 (b) in any other case—the property in relation to which subparagraph (b)(i) or (ii) of the definition of relevant agreement applies.
total interest, in relation to a relevant agreement, means the sum of all of the attributable agreement payments liable to be made under the relevant agreement, reduced by the eligible value of the relevant agreement property.
 (2) Where an agreement (including a hire‑purchase agreement and a lease) relates to the use by a person of 2 or more items of property owned by another person, this section applies as if, instead of the single agreement, there were separate agreements relating to the use of each of the items of property having such of the terms of the first‑mentioned agreement as are relevant.
 (3) Where a variation is or was made in the terms of, or liability to make payments under, a relevant agreement, then, for the purposes of the application of this section:
 (a) the relevant agreement shall be taken to be, or to have been, terminated at the time at which the variation has effect; and
 (b) a new relevant agreement shall be taken to be, or to have been, entered into at the time at which the variation has effect and on the terms of the first‑mentioned relevant agreement as so varied.
 (4) Where any right or option under an agreement to extend the term of, or otherwise vary the effect of, the agreement is or was exercised, then, for the purposes of this section, the exercise of that right or option shall be taken to be a variation of the terms of the agreement to provide for the extension or other effect.
 (5) Where an attributable agreement payment in relation to a relevant agreement is made, so much of the attributable agreement payment as does not exceed the notional interest in relation to the payment shall, for the purposes of this Division, be deemed to be income that consists of interest.
 (6) Where:
 (a) a relevant agreement is entered into after the commencement of this section; and
 (b) at the time at which the relevant agreement is entered into, the total interest in relation to the relevant agreement exceeds the sum of all amounts that, if all of the attributable agreement payments liable to be made under the relevant agreement were made, would, disregarding this subsection, be deemed to be income that consists of interest under subsection (5) in relation to the relevant agreement;
the amount of the notional interest in relation to the first attributable agreement payment in relation to the relevant agreement shall, for the purposes of this