Document ID: chunk:federal_register_of_legislation:F2024C00838:reg:74
Version: federal_register_of_legislation:F2024C00838
Segment Type: reg
Provision Reference: reg 74
Character Range: 109380–111137

74  Working out of amounts of interest on entry contribution balances
 (1) If the approved provider refunds the entry contribution balance after the refund day, the amount representing interest on the entry contribution balance is the amount worked out in accordance with the following formula:
where:
ECB is the amount of the entry contribution balance.
MPIR is the maximum permissible interest rate for the day after the refund day, worked out using the calculator in section 6.
ND(PP) is the number of days in the period:
 (a) beginning on the day after the refund day; and
 (b) ending on the day on which the entry contribution balance is refunded.
 (2) If the conditions set out in subsection (3) are satisfied in relation to the approved provider, subsection (1) applies as if the reference in paragraph (a) of the definition of ND(PP) to the day after the refund day were a reference to the day after the day on which probate of the will of the care recipient is, or letters of administration of the estate of the care recipient are, shown to the approved provider.
 (3) For subsection (2), the conditions are as follows:
 (a) the approved provider is required, under the formal agreement, to refund the entry contribution balance because the care recipient in relation to whom the entry contribution was paid has died;
 (b) the entry contribution balance is refunded after the refund day;
 (c) the reason that the entry contribution balance is refunded after the refund day is that neither the probate of the will of the care recipient, nor letters of administration of the estate of the care recipient, were shown to the approved provider before the refund day.

Division 3—Additional responsibilities of approved providers in relation to refunds