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Interest rates reduced according to reduced Benchmark rate

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35AA.8(1) If the rate of interest payable for a particular month on a subsidised advance, or on an amount owed to the Bank in relation to a specified portfolio asset, exceeds the reduced Benchmark rate, the rate payable for that month is reduced to the level of the reduced Benchmark rate.

(2) The reduced Benchmark rate for the month is the Benchmark rate worked out for the month in accordance with subclause 11.10 of the agreement, rounded up or down to 2 decimal places (rounding 0.005% up), less 1.5 percentage points.

(3) This section applies despite anything in any certificate of entitlement or in any subsidised advance contract or portfolio mortgage, portfolio contract of sale, portfolio supplementary agreement or other portfolio agreement.