Document ID: chunk:federal_register_of_legislation:C2025C00162:clause:1a_1157g:p2
Version: federal_register_of_legislation:C2025C00162
Segment Type: clause
Provision Reference: sch 1A cl 1157G (pt 2/2)
Character Range: 2331437–2332546

provisions apply:
 (a) the provider is taken, at the end of:
 (i) the period of 6 months starting on the day on which the principal loan was made; and
 (ii) each subsequent period of 6 months;
  to have made a loan (the deemed loan) to the recipient;
 (b) the amount of the loan is taken to be equal to the amount by which the interest (the accrued interest) that has accrued on the principal loan in respect of the period exceeds the amount (if any) paid in respect of the accrued interest before the end of the period;
 (c) if any part of the accrued interest becomes payable or is paid after the time when the deemed loan is taken to have been made, the deemed loan is to be reduced accordingly;
 (d) the deemed loan is taken to have been made at a nil rate of interest.
 (6) Paragraph (5)(a) only applies to a period of 6 months if the recipient is under an obligation during the whole of the period to repay the whole or a part of the principal loan.
 (7) For the purposes of this Part, if no interest is payable in respect of a loan, a nil rate of interest is taken to be payable in respect of the loan.