Document ID: chunk:federal_register_of_legislation:C2022A00028:clause:1_52zmaa:p1
Version: federal_register_of_legislation:C2022A00028
Segment Type: clause
Provision Reference: sch 1 cl 52ZMAA (pt 1/2)
Character Range: 7737–10432

52ZMAA  No negative equity guarantee

When adjusted value of assets is exceeded
 (1) If:
 (a) a person owes a debt to the Commonwealth under section 52ZC; and
 (b) neither subparagraph 52ZA(1)(e)(ii) nor subparagraph 52ZA(2)(e)(ii) applied to the person when the person made the request to participate in the pension loans scheme; and
 (c) either of the following events occur:
 (i) a person seeks to repay the debt;
 (ii) the Commonwealth seeks to recover the debt; and
 (d) at the time the event occurs, the amount of the debt exceeds the adjusted value of the person's real assets; and
 (e) subsection (3) of this section does not apply;
then:
 (f) the Commonwealth is not entitled to recover an amount (the excess amount) that exceeds the adjusted value of the person's real assets; and
 (g) the debt to the Commonwealth, and the charge securing the debt, is discharged to the extent of the excess amount by force of this paragraph.
Note: For the meaning of real assets, see subsection 52ZAAA(1).

When adjusted value of charge is exceeded
 (2) If:
 (a) a person owes a debt to the Commonwealth under section 52ZC; and
 (b) subparagraph 52ZA(1)(e)(ii) or (2)(e)(ii) applied to the person when the person made the request to participate in the pension loans scheme; and
 (c) either of the following events occur:
 (i) a person seeks to repay the debt;
 (ii) the Commonwealth seeks to recover the debt; and
 (d) at the time the event occurs, the amount of the debt exceeds the adjusted value of the real property specified for the purposes of paragraph 52ZA(3)(c); and
 (e) subsection (3) of this section does not apply;
then:
 (f) the Commonwealth is not entitled to recover an amount (the excess amount) that exceeds the adjusted value of the specified real property; and
 (g) the debt to the Commonwealth, and the charge securing the debt, is discharged to the extent of the excess amount by force of this paragraph.

Circumstances in which excess amount may be recovered and debt is not discharged
 (3) This subsection applies if the Commission is satisfied that:
 (a) a charge or encumbrance over the person's real assets or the specified real property is created or increased by, or with the express consent of, the person after the person begins to participate in the pension loans scheme which affects, or will affect, the ability of the Commonwealth to recover the debt owed under section 52ZC; or
 (b) the person engaged in fraud, or made a misrepresentation, in relation to the person's participation in the pension loans scheme, including in relation to the person's real assets or the specified real property.
 (4) The Commission may, by legislative instrument, make guidelines to