Document ID: chunk:federal_register_of_legislation:C2024C00682:schedule:1:p9
Version: federal_register_of_legislation:C2024C00682
Segment Type: schedule
Provision Reference: sch 1 (pt 9/50)
Character Range: 91575–94391

support of the application.
          5.4.3 Nothing in this Agreement shall be construed as:
            (a) preventing the Bank from making or agreeing to make a Housing Loan to a person who has not obtained an Entitlement Certificate; or
            (b) obliging the Commonwealth to pay Subsidy in respect of a Housing Loan until the provisions of Sub‑clause 7.1 have been satisfied.
          5.4.4 Where an Entitled Person fails to satisfy the Lending Criteria and the Bank nevertheless agrees to make a Subsidised Loan the Bank may require appropriate security in addition to that set out in Sub‑clause 5.12, whether by way of guarantee or otherwise from a person other than the Entitled Person, or may require additional security from the Entitled Person.
         5.5 Increase in the amount of a Subsidised Loan
       5.5.1  Where:
            (a) a person has obtained a Grant of Approval under the Act to increase the amount of a loan upon which Subsidy is payable; and
            (b) the person has lodged with the Bank loan application documents in respect of the increase reasonably required by the Bank,
         the Bank agrees that, provided the Lending Criteria are satisfied, it will grant an increase in the amount of the Subsidised Loan.
       5.5.2 The Bank acknowledges that Subsidy in respect of an increase in the amount of the Subsidised Loan shall not be payable by the Commonwealth until:
            (a) the Bank has forwarded to the Commonwealth an Application for Payment of Subsidy including a certificate by a manager of a branch of the Bank in the form of Part D; and
            (b) the provisions of Sub‑clause 7.1 have been satisfied.
       5.5.3 The Bank agrees that any increase in the amount of a Subsidised Loan shall be secured under the Mortgage securing the original advance.
         5.6 Application of Lending Criteria
     The Bank agrees that it shall apply the Lending Criteria in its consideration and assessment of an application for a Subsidised Loan or an application to increase the amount of the Subsidised Loan and that the Lending Criteria shall be the sole basis for refusal in whole or in part by the Bank of any such application.
         5.7 Lending Criteria
          The Lending Criteria of the Bank are:
          (a) Income
      as a general principle, the amount of repayments to be met by the Entitled Person on a Subsidised Loan shall not exceed 25 per cent of the gross income of the Entitled Person;
      (b) Commitments
      known commitments of an Entitled Person will be taken into consideration in determining the capacity of an Entitled Person to meet the repayments; and
      (c) the Entitled Person will be generally required to meet a reasonable deposit/equity ratio. As a general guideline, 20 per cent of the value of the Property