HOUSING ACT 2003 - SECT 143 Standard fixed interest rate—the repealed Act, s 32AA

HOUSING ACT 2003 - SECT 143

143 Standard fixed interest rate—the repealed Act, s 32AA

(1) This section applies if, immediately before the commencement day, an interest rate applying to a loan agreement, contract of sale or other agreement was—

(a) the standard fixed interest rate in force under the repealed Act, section 32AA (the
"standard fixed rate" ) at a particular time; or

(b) a rate calculated by reference to the standard fixed rate at a particular time.

(2) So far as the agreement provides for the application, at a time on or after the commencement day, of the standard fixed rate in force at a time before the commencement day, that rate continues to apply under the agreement.

Example—

A loan agreement provides that interest is payable, for a stated period, at the standard fixed rate in force on the day the agreement is entered into. From the commencement day, that rate continues to apply for the remainder of the stated period, as agreed.

(3) So far as the agreement provides for the application of the standard fixed rate in force at a time on or after the commencement day, the standard fixed rate is—

(a) for a time before a standard fixed interest rate is declared under section 92—the standard fixed rate in force immediately before the commencement day; or

(b) for a time after a standard fixed interest rate is declared under section 92—the standard fixed interest rate in force under that section.

(4) This section does not prevent the parties to the agreement agreeing to a different interest rate.

(5) In this section, a reference to the application of the standard fixed rate includes the application of another rate calculated by reference to the standard fixed rate.