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Maximum term of advances
Section 36 (1) Subject to section 37, the maximum term to be specified under paragraph 17(3)(b) in a certificate of entitlement in relation to a subsidised advance that a person may seek from the Bank is:
(a)in the case of an initial advance - 25 years;
(b) in the case of an additional advance, ...
(i) a term equal to the unexpired part of the term of the borrower's initial advance, further advance or Corporation advance, or of the purchaser's contract of sale, as the case may be; or
(ii) If the Secretary determines that a longer maximum term would be appropriate, having regard to the circumstances of the case - such longer term as the Secretary determines;
(d) in the case of a further advance:
(i)if the person has ceased to be a purchaser or borrower in relation to the last preceding previous advance - a term equal to the unexpired part of the last preceding previous advance at the time immediately before the person ceased to be such a purchaser or borrower; or
(ii)in any other case - a term equal to the unexpired part of the last preceding previous advance; and
(e)in the case of an advance or a specified portfolio asset transferred to a transferee - a term equal to the unexpired part of the advance or asset so transferred.
Section 36 (2) Subject to section 37, the maximum term of a specified portfolio asset which vests in the Bank under section 6B is a term equal to the remainder of the term of that specified portfolio asset as at the relevant vesting date.
Section 36 (3) Where the term of a specified portfolio asset which vests in the Bank under section 6B, or of a subsidised advance increases as a result of a grant of instalment relief to the purchaser or borrower, the maximum term of that specified portfolio asset or advance shall be taken to have increased by a period equal to the period by which the term of that asset or advance was so increased.
Section 36 (4) In this section:
- previous advance, in relation to a further advance in respect of a person, means an advance (whether a Corporation advance, initial advance, additional advance or further advance) in respect of which the person is or was a borrower, or a contract of sale, in respect of which the person is or was a purchaser, preceding the further advance in question.