Document ID: chunk:federal_register_of_legislation:C2025C00096:schedule:1:p35
Version: federal_register_of_legislation:C2025C00096
Segment Type: schedule
Provision Reference: sch 1 (pt 35/51)
Character Range: 250760–253489

Advance for the purpose of discharging any existing mortgage or other security over that Borrower's land or land and dwelling house.
    11.16 Notice of termination of Subsidy payments to Bank
    Where the Commonwealth elects to terminate future Subsidy payments to the Bank in respect of a Specified Portfolio Asset pursuant to Sub‑clause 11.15(a) then it shall give the Bank one month's notice of its intention to do so. If prior to the completion of that one month period the Bank gives the Commonwealth notice that it intends to take action to enforce its security with respect to that Specified Portfolio Asset then the Commonwealth shall continue to pay Subsidy until the Bank has discharged its loan, or for three (3) months, whichever is the earlier. Any Subsidy paid to the Bank which is recoverable from the Borrower pursuant to the Amending Act shall be paid to the Commonwealth by the Bank as required by the Amending Act from any moneys due to the Borrower from the proceeds of any sale by the Bank of his land or land and dwelling house.
    11.17 Entitlement of Bank to charge applicable interest rate
    The Commonwealth acknowledges that it shall be a term of any Subsidised Advance made by the Bank to a Borrower that in the event that Subsidy is, for any reason whatsoever, terminated by the Commonwealth in respect of that advance, the Bank shall be entitled to charge the interest rate applicable to similar loans provided by the Bank to borrowers generally from the date of termination of Subsidy.

    12. DEFAULT PROVISIONS
    12.1 Persistent Failure by Bank to provide Subsidised Advances
     Where it appears to the Commonwealth that there has been a persistent failure by the Bank to provide Subsidised Advances in accordance with this Agreement or to treat applicants for further loans in the manner required by Sub‑clause 8.8, the Commonwealth may, by notice in writing served on the Bank, require the Bank within twenty‑eight (28) days after service of that notice to rectify that failure.
         12.1.1 Where following such notice the Bank fails to rectify such persistent failure then without prejudice to any other rights the Commonwealth may have:
            (a) the Commonwealth shall be entitled to defer part of or all future payments of Subsidy to the Bank until such time as the persistent failure has been so rectified, or for such lesser time which the Commonwealth in its discretion determines provided however that such deferral shall not exceed a period of six (6) months; and
            (b) in the event that the persistent failure continues for a period of three (3) months or more following the Bank's receipt of notice thereof from the Commonwealth, the Bank is required to