Document ID: chunk:federal_register_of_legislation:F2020C00896:reg:25
Version: federal_register_of_legislation:F2020C00896
Segment Type: reg
Provision Reference: reg 25
Character Range: 17186–18140

25  Setting interest rates
  For the purposes of paragraph 15(1)(e) of the Act, the Board has the functions of:
 (a) agreeing with the responsible Ministers on a methodology, for setting variable interest rates for small business drought loans, that:
 (i) is to result in rates that only cover the Corporation's administrative costs to deliver small business drought loans and the Commonwealth's borrowing costs to fund the Corporation to make such loans; and
 (ii) involves review of the interest rate for small business drought loans each November and May and, if necessary, revising it in line with changes of more than 0.1% in the Commonwealth 10‑year bond rate; and
 (b) ensuring that the Corporation:
 (i) applies any revised interest rate on the first day of the third month after the month the relevant review was conducted; and
 (ii) notifies affected recipients of small business drought loans in advance of any revision of the interest rate.