Document ID: chunk:federal_register_of_legislation:C2024C00682:schedule:1:p19
Version: federal_register_of_legislation:C2024C00682
Segment Type: schedule
Provision Reference: sch 1 (pt 19/50)
Character Range: 116966–119637

due amount to the Commonwealth and add the amount of such payment to the principal sum outstanding on the Subsidised Borrower's Subsidised Loan Account, and,
         (ii) immediately advise the Commonwealth in writing that the amount has been so added specifying the date on which it was added and the principal and interest owing to the Bank before the amount was added in respect of any advance by the Bank secured over the Property;
      (e) the Parties acknowledge that where the Bank adds an amount to the principal sum outstanding on a Subsidised Loan Account pursuant to Sub‑clause 8.2 (d), such amount shall be repayable to the Bank as if the Bank had advanced the amount to the Subsidised Borrower as a Housing Loan secured by a mortgage and that the Commonwealth is not obliged under the Act to pay Subsidy in respect of the amount.
    8.3 Bank not required to add over‑payment where Subsidised Loan Account closed.
        8.3.1 Pursuant to the Act, the Bank shall not be required to perform its obligations under Sub‑clause 8.2 (d) where the Subsidised Loan Account is closed at the time the Bank receives notice from the Commonwealth pursuant to that Sub‑clause.
        8.3.2 For the purposes of this clause the Subsidised Loan Account shall not be taken to be closed until all agreements made between the Bank and the Subsidised Borrower and which related to the Subsidised Loan, including increases in the amount of the Subsidised Loan, have been discharged.
    8.4 Commonwealth to refund Amount to Bank in certain circumstances. Where pursuant to Sub‑clause 8.2 (d) (i) the Bank has paid an amount to the Commonwealth and added that amount to the principal outstanding on a Subsidised Loan Account and has provided the advice to the Commonwealth set out in Sub‑clause 8.2 (d) (ii), if at any time thereafter:
      (a) the Bank, for any reason or in any circumstances, realises the Mortgage securing the loan;
      (b) the proceeds of such realisation are insufficient to meet, all or any part of, the moneys due to the Bank under the said Mortgage; and
      (c) the Bank has taken action against the borrower to recover the shortfall suffered by the Bank on realisation of the Mortgage and such action has not been successful or the Bank in the ordinary course of its business would have written off the amount of the shortfall as a bad debt,
    the Commonwealth will refund to the Bank such amount of the moneys paid by the Bank to the Commonwealth pursuant to Sub‑clause 8.2 (d) as is necessary to recompense the Bank for the shortfall suffered on realisation of the Mortgage; provided always that in assessing the extent of the shortfall to be