Document ID: chunk:federal_register_of_legislation:C2025C00096:section:26:p2
Version: federal_register_of_legislation:C2025C00096
Segment Type: section
Provision Reference: s 26 (pt 2/3)
Character Range: 106693–109326

right of residence and is liable to pay the outstanding amount of a subsidised advance in respect of which subsidy is payable; and
 (c) the credit provider has no security for the subsidised advance; and
 (d) the Secretary is satisfied that the person has agreed or arranged to transfer the right of residence, while the person's liability under paragraph (b) remains, to a person who is not a transferee;
the Secretary may, by notice of cancellation given to the first‑mentioned person, cancel the subsidy on the date specified in the notice, being a date not earlier than the date of the notice.
 (2B) If:
 (a) the Commonwealth is paying subsidy on an assigned advance; and
 (b) the Secretary is satisfied that:
 (i) the assignor has agreed to transfer the right of residence in the retirement village, or has given up the right of residence in the retirement village; or
 (ii) the assignee has agreed to transfer all or part of his or her interest in the retirement village, or has terminated the assignor's right of residence in the retirement village;
the Secretary may, by notice of cancellation given to the assignor, cancel the subsidy on the date specified in the notice, being a date not earlier than the date of the notice.
 (2C) If the Secretary cancels a subsidy under subsection (2B), the credit provider may, from the date when the cancellation of subsidy takes effect, charge an interest rate in relation to the advance that is an interest rate applicable to similar loans provided by the credit provider to mortgagors generally.
 (3) Where the Commonwealth is paying subsidy on a specified portfolio asset or a subsidised advance and the credit provider takes action to enforce:
 (i) the asset; or
 (ii) the mortgage securing the advance; or
 (iii) in the case of a right of residence in a retirement village—any other security that the credit provider has in relation to that advance;
but does not, within 3 months after starting that action, recover the outstanding balance secured under the asset, or the outstanding balance of the advance, as the case may be, the Secretary may, by notice of cancellation given to the relevant borrower, purchaser or transferee, cancel the subsidy on the date specified in the notice, being a date not earlier than the date of the notice.
 (4) Where the Commonwealth is paying subsidy in respect of 2 persons and one of those persons becomes a spouse or de facto partner of the other person, the Secretary may, by notice of cancellation given to one of those persons, cancel the subsidy in respect of that person on the date specified in the notice, being a date not earlier than