Document ID: chunk:federal_register_of_legislation:C2004A03717:body:0:p55
Version: federal_register_of_legislation:C2004A03717
Segment Type: other
Provision Reference: 
Character Range: 137639–140498

should such review result in the Commonwealth's determination being amended, the Commonwealth shall advise the Bank and the applicant of the result of the review by issuing a further Certificate of Entitlement and the Bank shall, subject to Subclause 7.5, provide a Subsidised Advance and/or Instalment Relief and/or give effect to the Commonwealth's consent to a transfer of Land and Subsidy in accordance with that Certificate.
    8. SUBSIDISED ADVANCES/INSTALMENT RELIEF/TRANSFER OF LAND AND SUBSIDY
    8.1 Repayment of Subsidised Advance
    The Bank agrees that a Subsidised Advance shall be repayable in equal monthly instalments comprising principal and interest with the interest being calculated each month on the outstanding principal at the end of each preceding month.
    8.2 Initial Advances—Description
    The Bank agrees that the initial advance made by the Bank to an Entitled Applicant who has not previously been a Borrower shall be a Subsidised Advance up to a maximum amount of twenty five thousand dollars ($25,000) repayable over a term not exceeding twenty five (25) years or such other amount or term as may be agreed upon between the parties.

SCHEDULE 1—continued
    8.3 Security
    The Bank agrees that all Subsidised Advances shall be secured by way of a first mortgage over the Entitled Applicant's holding as defined in the Act, except that:
     (a) where a Borrower has not previously obtained a Subsidised Advance in an amount up to that to which he is entitled, but subsequently does receive such an additional advance, that additional advance must be secured either by way of a first mortgage or if this is not possible by way of a second mortgage over that Borrower's holding as defined in the Act; or
     (b) where the Borrower is a purchaser under a Portfolio Contract of Sale, any additional Subsidised Advance may be unsecured.
    8.4 Instalment Relief
    The parties agree that where the Bank provides Instalment Relief, such relief will be granted by:
     (a) a reduction in the monthly instalments of the Borrower under the Specified Portfolio Asset or Subsidised Advance and an extension in the repayment term of that Specified Portfolio Asset or Subsidised Advance to cover the cost of such reduction, thereby extending the period over which the Commonwealth pays Subsidy to the Bank; and
     (b) the incorporation in the Limit of the Subsidised Advance Loan Account applicable to the Specified Portfolio Asset or Subsidised Advance of;
          (i) part or all of the amount of Arrears outstanding in that Subsidised Advance Loan Account at the date of effect of the Instalment Relief; and
          (ii) unpaid interest where agreed instalments are reduced as a result of the grant of Instalment Relief.
    8.5 Transfer of Land and Subsidy
    In the event that the Certificate of Entitlement states