Document ID: chunk:federal_register_of_legislation:C2025C00096:schedule:1:p25
Version: federal_register_of_legislation:C2025C00096
Segment Type: schedule
Provision Reference: sch 1 (pt 25/51)
Character Range: 224861–227731

the Bank and the Commonwealth shall meet to discuss what arrangements, if any, suitable to the Bank and the Commonwealth can be made whereby the Bank will provide the advance or instalment relief to the Entitled Applicant.
    8.8 Further Loans/Instalment Relief
    Nothing hereunder shall operate in any way to restrict the ability of a Borrower to approach the Bank for such further loans and/or instalment relief as the Borrower may in his discretion require, in which event the Bank hereby undertakes to treat such loan and/or instalment relief applications in their ordinary and usual course of banking business and treat the Borrower as it would treat a Housing Loan Customer seeking a single loan. In particular, the Bank agrees that where a Borrower applies for another loan at the same time as applying for a Subsidised Advance it will charge the Borrower one set of Establishment Fees covering both the Subsidised Advance and the further loan and secure both advances under the same first mortgage.

    9. EXCESS CREDITS
    9.1 Provision of Excess Credit Arrangement
    Where a Borrower pays to the Bank an amount of Excess Credits then the Bank agrees to provide to the Borrower an Excess Credit arrangement.
    9.2 Form of Excess Credit Arrangement
    The Excess Credit arrangement to be made available by the Bank to Borrowers pursuant to Sub‑clause 9.1 shall take the form of either:
       (a) a loan interest offset arrangement; or
       (b) a banking account.
    9.3 Election by Borrower
    The Bank agrees to provide to a Borrower a choice between the two types of Excess Credit arrangement referred to in Sub‑clause 9.2. In the event that the Borrower fails to exercise such a choice before the Borrower's first repayment is due to the Bank under the Portfolio Asset and/or Subsidised Advance, then the Bank shall provide a loan interest offset arrangement. The Bank further agrees that a Borrower may elect at any time to change between the two types of Excess Credit arrangements during the currency of the Portfolio Asset and/or Subsidised Advance.
    9.4 Loan Interest Offset Arrangement
    If the Bank provides a loan interest offset arrangement then:
         9.4.1 the Bank will apply the Excess Credits to reduce the principal outstanding in the Borrower's Subsidised Advance Loan Account without penalty to the Borrower;
         9.4.2 where the principal outstanding attracts various interest rates the reduction shall be made on a proportionate basis in accordance with the relationship between the amount of principal which attracts a single interest rate and the total principal outstanding;
         9.4.3 providing it remains secured by the first mortgage the Borrower may increase the principal outstanding by drawing from his Subsidised Advance Loan Account any amount by which the Limit exceeds the Balance;
         9.4.4