DEFENCE SERVICE HOMES ACT 1918 - SECT 35A Modifications of Bank agreement and other instruments

DEFENCE SERVICE HOMES ACT 1918 - SECT 35A

  (1)   Despite clause   8.1 of the Bank agreement and anything contained in any subsidised advance contract or in any portfolio mortgage, portfolio contract of sale, portfolio supplementary agreement or other portfolio agreement:

  (a)   a subsidised advance or an amount owed to the Bank under a loan secured by a specified portfolio asset is repayable in equal monthly instalments comprising principal and interest; and

  (b)   interest on each subsidised advance and each amount owed under a loan secured by a specified portfolio asset is to be:

  (i)   charged in arrears; and

  (ii)   calculated by applying the applicable annual percentage rate divided by 365 to the outstanding daily balance of the subsidised advance loan account; and

  (c)   if the Commonwealth terminates the interest subsidy in respect of a subsidised advance contract:

  (i)   the Bank may terminate the contract and any associated portfolio mortgage, portfolio contract of sale, portfolio supplementary agreement or other portfolio agreement; and

  (ii)   if the Bank does so, it is entitled to demand repayment of, and recover by action in any court or under the mortgage, the principal and interest and any other money owing under the contract, mortgage or agreement.

  (2)   Clause   1.1 of the Bank agreement has effect as if the definition of "Rest Day" were omitted and the following definition were substituted:

"Rest Day: means, in respect of a Specified Portfolio Asset or a Subsidised Advance, the fifth day of each month on which principal and accrued interest will be due and payable in respect of the relevant Subsidised Advance Loan Account."

  (3)   Any reference to a rest day in any mortgage relating to a subsidised advance, or in any portfolio mortgage, portfolio contract of sale, portfolio supplementary agreement or other portfolio agreement, is taken to be a reference to a rest day as defined by subsection   (2).

  (4)   The Bank agreement has effect as if Part B of Schedule D were omitted.