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Certificates of entitlement: advances

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Section 17 (1)  Subject to this Act, the Secretary shall, on application by a person for a certificate of entitlement in relation to subsidy on a subsidised advance that the person may seek from the Bank, issue to the applicant a certificate of entitlement certifying that subsidy is payable by the Commonwealth to the Bank if, in accordance with the agreement, the Bank makes that advance to the applicant or the assignee of the applicant.

Section 17 (2)  A certificate of entitlement issued under this section remains in force until:

(a) it lapses as provided in the agreement; or

(b) subsidy in respect of the relevant advance ceases to be payable under thisAct;

whichever happens first.

Section 17 (3)  A certificate of entitlement issued under this section shall:

(a) specify the maximum amount in respect of which subsidy is payable, being an amount determined under section 25;

(b) specify the maximum term of the advance;

(c) if subsection 34(2) applies - specify the rates of interest and proportions of the further advance to which each of those rates of interest apply, as required by that subsection;

(d) in any other case - specify the rate of interest payable on the advance; and

(da) contain a statement setting out the effect of section 35AA (which, in some situations, reduces the rate of interest payable on a subsidised advance); and

(e) contain particulars of such other matters as are specified in the agreement.

Section 17 (4) A certificate of entitlement issued under this section must:

(a)if the certificate relates to an initial advance, or a further advance, that is not an assigned advance - specify that the advance is for the purposes referred to in subsection 18(2) (other than paragraph 18(2)(1)); or

(b) if the certificate relates to an initial advance, or a further advance, that is an assigned advance - specify that the advance is for the purpose of assisting the assignee of the applicant in obtaining a right of residence in the retirement village in question; or

(c) if the certificate relates to an additional advance that is not an assigned advance - specify that the advance is for the purposes referred to in subsection 18(3) (other than paragraph 18(3)(g)); or

(d) if the certificate relates to an additional advance that is an assigned advance - specify that the advance is for the purpose of assisting the assignee of the applicant in continuing to hold a right of residence in the retirement village in question; or

(e) in any other case - specify the purpose of the advance.