Document ID: chunk:federal_register_of_legislation:C2025C00014:section:109e:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 109E (pt 2/3)
Character Range: 936667–939250

(the original year of income); and
 (b) the maximum term of the old amalgamated loan under subsection 109N(3) was 7 years; and
 (c) in a later year of income (the later year of income):
 (i) a constituent loan taken account of by the old amalgamated loan becomes secured by a mortgage over real property; and
 (ii) the term of the constituent loan is extended; and
 (d) as a result of the mortgage, the maximum term of the constituent loan under subsection 109N(3) is 25 years; and
 (e) the term of the constituent loan after the extension (including the period before the extension during which the constituent loan was in existence) does not exceed 25 years.
 (3B) For the purposes of this Division in relation to the later year of income and subsequent years of income:
 (a) treat the constituent loan as a new amalgamated loan that takes account of that constituent loan; and
 (b) treat the new amalgamated loan as having been made just before the start of the later year of income; and
 (c) treat the amount of the new amalgamated loan just before the start of the later year of income as the amount of the constituent loan that had not been repaid at that time; and
 (d) unless paragraph (e) applies—reduce the amount of the old amalgamated loan just before the start of the later year of income by the amount of the new amalgamated loan at that time; and
 (e) if the constituent loan was the only constituent loan taken account of by the old amalgamated loan—disregard the old amalgamated loan.

Payments in relation to constituent loans treated as payments in relation to amalgamated loan

 (4) For the purposes of this Division, a payment to the private company in relation to a constituent loan in a year of income after the one in which the constituent loan was made is taken to be a payment in relation to the amalgamated loan that takes account of the constituent loan.

Minimum yearly repayment

 (5) The minimum yearly repayment of an amalgamated loan for a year of income is the amount worked out using the formula in subsection (6). However, the minimum yearly repayment of an amalgamated loan for a year of income is the amount worked out under the regulations, if they provide for working it out.

Formula for minimum yearly repayment

 (6) The formula for the minimum yearly repayment for a year of income is:

where:

current year's benchmark interest rate is the benchmark interest rate for the year of income for which the minimum yearly repayment is being worked out.

remaining term is the difference between:
 (a) the number of years in the longest term of