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DEFENCE SERVICE HOMES ACT 1918 - SECT 51 Regulations

DEFENCE SERVICE HOMES ACT 1918 - SECT 51

Regulations

    The Governor - General may make regulations, not inconsistent with this Act, prescribing all matters, which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for giving effect to this Act and, in particular, making provision for, and in relation to, the undertaking of insurance by the Commonwealth under Part   VI.

Method statement

Step 1.   For each different rate of interest payable, multiply the rate by that part of the limit of the advance, or of the limit of the amount, on which the rate is payable, and total the results.

  Note:   However, if that limit is nil, see subsection   (4).

Step 2.   Divide the total by the limit of the advance or amount.

Step 3.   Express the result as a percentage rate per year and round the rate up or down to 2 decimal places (rounding 0.005% up). This is the blended interest rate for the advance or amount (subject to Steps 4 and 5).

Step 4.   If:

  (a)   the result from Step 3 is less than 6.85% per year but not less than 6.67% per year; and

  (b)   apart from this section, the different rates of interest payable on the different parts of the limit are 3.75% per year, 7.25% per year and 10% per year;

  the blended interest rate is instead 6.85% per year.

Step 5.   If:

  (a)   the result from Step 3 is less than 4.5% per year but not less than 4.45% per year; and

  (b)   apart from this section, the different rates of interest payable on the different parts of the limit are 3.75% per year and 7.25% per year;

  the blended interest rate is instead 4.5% per year.

  Note:   Steps 4 and 5 are needed because the amortisation of the limit of the advance or amount over the term of the loan or contract can cause small temporary deviations from the average of the various rates of interest over the term. Steps 4 and 5 prevent these deviations from affecting the calculation of the blended interest rate.