Document ID: chunk:federal_register_of_legislation:C2025C00096:section:35ac:p2
Version: federal_register_of_legislation:C2025C00096
Segment Type: section
Provision Reference: s 35AC (pt 2/2)
Character Range: 126920–128665

over the term. Steps 4 and 5 prevent these deviations from affecting the calculation of the blended interest rate.
 (3) This is an example of how to work out the blended interest rate for an advance or amount:
Example: Assume that the limit of an advance is $4,000. Interest is payable at the rates of 3.75% per year on the first $1,000, 7.25% per year on the next $1,000 and 10% per year on the last $2,000 of that limit.
 The Step 1 calculations are:

 Under Step 2, the $310 is divided by the total limit of $4,000, giving a result of 0.0775.
 Under Step 3, that result is expressed as a percentage: 7.75% per year.
 Step 4 does not apply, because the blended interest rate is too high. Step 5 does not apply, because the blended interest rate is too high and in any event because the rates of interest in question are not the ones specified in Step 5. Therefore, the blended interest rate for the advance is 7.75% per year.
 (4) For Steps 1 and 2 of the method statement in subsection (2), if the limit of the advance or amount at the time concerned is nil, then, instead of nil, use the amount of the limit from when the advance was first made, or when the amount first became owing to the Bank.
 (5) This section applies despite anything in any certificate of entitlement or in any subsidised advance contract or portfolio mortgage, portfolio contract of sale, portfolio supplementary agreement or other portfolio agreement.
 (6) This section is subject to section 35AA (which will sometimes further reduce the rate of interest payable).
 (7) If this section would increase the total amount of interest payable on the balance of an advance or amount over the term of the advance or amount, then this section does not apply to that balance.