Document ID: chunk:federal_register_of_legislation:F2021C00016:body:0:p3
Version: federal_register_of_legislation:F2021C00016
Segment Type: other
Provision Reference: 
Character Range: 5700–8622

the Corporation from farm business loan recipients must be paid to the Commonwealth as soon as reasonably practicable.
    (5) Any funds received by the Corporation from farm businesses under section 47 of the Act to reimburse costs the Corporation has incurred in relation to the farm business loan may be retained by the Corporation and do not need to be paid to the Commonwealth.
Administrative expenses
    (8) Funds provided to the Corporation for administrative expenses must only be used for that purpose.
    8. Interest rates
    (1) For each program of farm business loans that the Corporation administers, the Board must set a variable interest rate for each program and apply that interest rate to all farm business loans offered within that program.
    (2) The Board must set interest rates in accordance with a methodology that is agreed by the responsible Ministers.  The methodology will include the following:
       (a) The interest rate will cover only the Corporation's administrative costs to deliver concessional loans and the Commonwealth's borrowing costs.
       (b) The interest rate for each program will be reviewed every six months in November and May and revised if necessary in line with material changes to the Commonwealth 10‑year bond rate, where a material change is taken to be a movement of more than 10 basis points (0.1 per cent).
       (c) Any change in the interest rate will take effect from 1 February or 1 August each year as applicable.
    (3) The Corporation will notify loan recipients in writing in advance of any changes to the interest rate.
    9. Farm business loans
Program guidelines
    (1) The Corporation must develop and publish guidelines for each program of farm business loans consistent with this instrument and in consultation with the responsible Ministers.
Offering farm business loans
    (2) The Corporation is to administer the farm business concessional loan program. The Corporation can only offer farm business loans under the farm business concessional loan program in accordance with the specifications set out in Schedule 1.
    (3) In administering the farm business concessional loan program, the Corporation must be satisfied that an applicant fulfils the mandatory requirements set out in Schedule 1 before the Corporation offers that applicant a farm business loan.
    (4) The Corporation will offer and promote refinancing to eligible farm businesses under the farm business concessional loan program. This may include debt from previous concessional loan programs.
    (5) For each program of farm business loans that the Corporation administers, the Corporation should be mindful that the Commonwealth is not seeking to impede appropriate structural adjustment nor be the lender of last resort to the farming sector. To this end, the Corporation should not provide loans to applicants who have intentionally pursued high risk strategies