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Reduction of certain single-tiered rates of interest

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35AB.9 (1) If:

(a)a person is the borrower in respect of a subsidised advance or an amount owed to the Bank in relation to a specified portfolio asset; and

(b)apart from this section, a single rate of interest would be payable on the whole of the balance of the advance or amount; and

(c)that rate exceeds 6.85% per year;

the rate of interest payable on the balance is reduced to 6.85% per year.

(2) 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.

(3) This section is subject to section 35AA (which will sometimes reduce the rate of interest payable to less than 6.85% per year).