PENALTY INTEREST RATES ACT 1983 - SECT 2 Penalty interest rate

PENALTY INTEREST RATES ACT 1983 - SECT 2

    (1)     The penalty interest rate is the interest rate expressed as a percentage fixed by the Attorney-General from time to time by notice published in the Government Gazette.

    (2)     The Attorney-General must determine the penalty interest rate to be fixed by—

        (a)     obtaining from time to time a recommendation from the Treasurer as to an appropriate institutional rate of interest, which must be a rate—

              (i)     which is charged for loans or paid for borrowings by a public or commercial institution; and

              (ii)     which, in the opinion of the Treasurer, reflects prevailing commercial rates of interest; and

        (b)     determining, after consultation with the Treasurer, whether the recommended institutional rate should be adjusted to include a penalty element, and, if so, the nature and size of the adjustment; and

        (c)     adding or subtracting the adjustment (if any) to or from the institutional rate.

    (3)     If there is any change to the percentage of the institutional rate, the Attorney-General may fix a new penalty interest rate to take account of the change and may do this without complying with subsection (2).

S. 3

repealed by No. 58/1989

s. 3.

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