Criteria for issue of certificate of entitlement: advances other than widows' advances and advances for essential repairs

Section 18 (1)  Subject to this section, the Secretary shall not issue a certificate of entitlement in relation to subsidy on an advance that a person may seek from the Bank unless satisfied that:

(a)the person is an eligible person, or the spouse or de facto partner of an eligible person who is temporarily or permanently insane; and

(b) the person:

(i)is not the owner of a dwelling-house; and

(ii) does not have a right of residence in a retirement village; and

(iii) does not own an interest in shares giving rise to a company title in respect of land on which a dwelling-house is built;

• other than the dwelling-house, right of residence, or company title in respect of which the advance is payable; and

(c) the person is not liable to repay any amount received by way of assistance under an agreement of the kind known as a War Service Land Settlement Agreement; and

(d) the person has not received money from the Commonwealth after 9 December 1987 by way of:

(i) a payment of a cash grant instead of an advance under this Act as in force on or before that day; or

(ii) a payment instead of such a cash grant; and

(e)if the person has a spouse or de facto partner (other than a spouse or de facto partner from whom he or she is permanently separated) - the spouse or de facto partner:

(i) is not the owner of a dwelling-house; and

(ii) does not have a right of residence in a retirement village; and

(iii) does not own an interest in shares giving rise to a company title in respect of land on which a dwelling-house is built;

• other than the dwelling-house, right of residence or company title in respect of which the advance is payable; and

(f) except in the case of an advance to a person included in paragraph  (b) or (d) of the definition of "Australian Soldier" in section 4 in relation to a house or building used or to be used as a hospital, sanatorium or nursing-home - the dwelling-house or retirement village accommodation in respect of which the advance is payable is intended to be used by the person as a home for the person and any dependants of the person; and

(g) such advance will be secured by:

(i) in the case of an assigned advance - except as provided by the agreement, a first or subsequent mortgage over the assignee's interest in the retirement village and over any other person's interest in the retirement village; or

(ii) in any other case - except as provided by the agreement,  a first mortgage over the person's interest in the holding and over any other person's interest in the holding.

Section 18 (2)  The Secretary shall not issue a certificate of entitlement in relation to subsidy on an advance, other than an additional advance, that a person may seek from the Bank unless satisfied that the advance is for the purpose of enabling the person:

(a) to build a dwelling-house on a holding of the person; or

(b) to purchase a holding and build a dwelling-house on the holding; or

(c)to purchase a dwelling-house together with the holding on which it is built;

or

(d)to complete a partially built dwelling-house on a holding of the person; or

(e) to enlarge, modify or repair a dwelling-house on a holding of the person; or

(f) to discharge any mortgage, charge or encumbrance already existing on the person's interest in a holding; or

(g) to obtain a right of residence in a retirement village; or

(h) to complete the person's partially-built retirement village accommodation; or

(j) to enlarge, modify or repair the person's retirement village accommodation; or

(k)to discharge any debt owed by the person in relation to the person's retirement village accommodation; or

(l) in the case of an assigned advance - to be assisted in obtaining a right of residence in the retirement village.

Section 18 (3)  The Secretary shall not issue  a certificate of entitlement in relation to subsidy on an additional advance that a person may seek from the Bank unless satisfied that the advance is for the purpose of enabling the person:

(a)to enlarge, modify or repair:

(i) a dwelling-house on a holding of the person; or

(ii) a person's retirement village accommodation; or

(b) to meet the cost of roadmaking if the person is liable to meet that cost but is otherwise unable to do so; or

(e)to discharge any mortgage, charge or encumbrance already existing on the person's interest in a holding; or

(f)to discharge any debt owed by the person in relation to the person's retirement village accommodation; or

(g) in the case of an assigned advance - to be assisted in continuing to hold a right of residence in the retirement village.

Section 18 (6)  In this section:

"advance" means a subsidised advance other than a widow or widower advance or an advance for essential repairs.