Document ID: chunk:federal_register_of_legislation:C2025C00096:section:26:p1
Version: federal_register_of_legislation:C2025C00096
Segment Type: section
Provision Reference: s 26 (pt 1/3)
Character Range: 104384–106928

26  Cancellation of subsidy
 (1) Where the Commonwealth is paying subsidy on a subsidised advance to a person, or the assignee of a person, and the Secretary is satisfied that:
 (a) a certificate of entitlement in relation to that advance was issued to the person as a result of a false statement made by the person or the assignee of the person; or
 (aa) a certificate of assignment in relation to that advance was issued to the person as a result of a false statement made by the person or the assignee of the person; or
 (b) the person was not, when a certificate of entitlement in relation to the advance was issued to the person, entitled to the certificate; or
 (ba) the person was not, when a certificate of assignment in relation to the advance was issued to the person, entitled to the certificate; or
 (c) the person, or the assignee of the person, used the advance for a purpose other than that for which it was made; or
 (d) where the person is a transferee—the person has, without reasonable excuse, failed to comply with an undertaking given by the person to the Secretary under subsection 22(2);
the Secretary may, by notice of cancellation given to the person, cancel the subsidy on the date specified in the notice, being a date not earlier than the date of the notice.
 (2) Where:
 (a) the Commonwealth is paying subsidy on a specified portfolio asset which vests in the Bank under section 6B or a subsidised advance; and
 (b) the Secretary is satisfied that the person in respect of whom the subsidy is being paid has agreed or arranged to transfer the relevant land, land and dwelling‑house or right of residence in a retirement village, by a transfer that is subject to:
 (i) that specified portfolio asset; or
 (ii) the mortgage securing that advance; or
 (iii) in the case of a right of residence in a retirement village—any other security that the credit provider has in relation to that advance;
  as the case may be, to a person who is not a transferee;
the Secretary may, by notice of cancellation given to the first‑mentioned person, cancel the subsidy on the date specified in the notice, being a date not earlier than the date of the notice.
 (2A) If:
 (a) a person has obtained a right of residence in a retirement village; and
 (b) the person is a borrower in relation to that right of residence and is liable to pay the outstanding amount of a subsidised advance in respect of which subsidy is payable; and
 (c) the credit provider has no security for the subsidised advance; and
 (d) the Secretary is satisfied