Document ID: chunk:federal_register_of_legislation:C2004A03717:body:0:p57
Version: federal_register_of_legislation:C2004A03717
Segment Type: other
Provision Reference: 
Character Range: 142763–145621

and the further loan and secure both advances under the same first mortgage.
9. EXCESS CREDITS
    9.1 Provision of Excess Credit Arrangement
    Where a Borrower pays to the Bank an amount of Excess Credits then the Bank agrees to provide to the Borrower an Excess Credit arrangement.
    9.2 Form of Excess Credit Arrangement
    The Excess Credit arrangement to be made available by the Bank to Borrowers pursuant to Sub-clause 9.1 shall take the form of either:
    (a) a loan interest offset arrangement; or
    (b) a banking account.

SCHEDULE 1—continued
    9.3 Election by Borrower
    The Bank agrees to provide to a Borrower a choice between the two types of Excess Credit arrangement referred to in Sub-clause 9.2. In the event that the Borrower fails to exercise such a choice before the Borrower's first repayment is due to the Bank under the Portfolio Asset and/or Subsidised Advance, then the Bank shall provide a loan interest offset arrangement. The Bank further agrees that a Borrower may elect at any time to change between the two types of Excess Credit arrangements during the currency of the Portfolio Asset and/ or Subsidised Advance.
    9.4 Loan Interest Offset Arrangement
    If the Bank provides a loan interest offset arrangement then:
        9.4.1 the Bank will apply the Excess Credits to reduce the principal outstanding in the Borrower's Subsidised Advance Loan Account without penalty to the Borrower;
        9.4.2 where the principal outstanding attracts various interest rates the reduction shall be made on a proportionate basis in accordance with the relationship between the amount of principal which attracts a single interest rate and the total principal outstanding;
        9.4.3 providing it remains secured by the first mortgage the Borrower may increase the principal outstanding by drawing from his Subsidised Advance Loan Account any amount by which the Limit exceeds the Balance;
        9.4.4 the Bank will permit the Borrower to withdraw funds at any time by way of cheque; and
        9.4.5 the Bank will permit four (4) free withdrawals or debits for each quarter of each Calendar Year.
    9.5 Banking Account
    If the Bank provides a banking account then:
     (a) the Bank will deposit Excess Credits in an interest bearing deposit account with funds at call;
     (b) the account will have bill paying facilities, and
     (c) the account will have a direct credit facility.
    9.6 Obligations of Bank
    The Bank agrees to advise Borrowers of the purposes for which either a loan interest offset arrangement as described in Sub-clause 9.4 or a banking account as described in Sub-clause 9.5 can be used, (such purposes being described in Schedule E to this Agreement) and further agrees not to charge any fees (excluding statutory charges) to Borrowers in respect of withdrawals or debits made