Document ID: chunk:federal_register_of_legislation:F2020C00878:reg:29
Version: federal_register_of_legislation:F2020C00878
Segment Type: reg
Provision Reference: reg 29
Character Range: 20000–20939

29  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 expanded drought loans, that:
 (i) is to result in rates that only cover the Corporation's administrative costs to deliver expanded 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 expanded 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 in which the relevant review was conducted; and
 (ii) notifies affected recipients of expanded drought loans in advance of any revision of the interest rate.