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SCHEDULE 1 to the Act

Document

Agreement between the Commonwealth of Australia and Westpac Banking Corporation

7.1Applications

7.1.1In the event of an applicant approaching the Bank for

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(b)Instalment Relief; and/or

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the Bank shall provide the applicant with an application for a Certificate of Entitlement which application shall be completed by the applicant.

7.1.2The Bank agrees that nothing in this Agreement prohibits an applicant for a Certificate of Entitlement from applying initially directly to the Commonwealth for the purpose of obtaining such Certificate except that in the case of an application for a Certificate of Entitlement for Instalment Relief, such application can only be made through the Bank.

7.1.3The Bank or the applicant shall forthwith on completion of an application for a Certificate of Entitlement forward that application to the Commonwealth.

7.1.4On receipt by the Commonwealth of a completed application for a Certificate of Entitlement either from the Bank or an applicant, the Commonwealth shall proceed to determine whether the applicant is an Entitled applicant and, if so, shall issue to the applicant a Certificate of Entitlement.

7.1.5On receipt by the Commonwealth of a completed application for a Certificate of Entitlement for Instalment Relief from the Bank, the Commonwealth shall proceed to determine whether the applicant is an Entitled applicant and, if so, shall issue a Certificate of Entitlement within seven (7) days of receipt of the said application by the Commonwealth.

7.7Failure to meeting Lending Criteria

The Bank further agrees that the failure by an Entitled Applicant to meet the lending criteria set out in Schedule "C" will be the sole basis for a refusal in whole or in part by the Bank to make the Subsidised Advance or grant the Instalment Relief or give effect to the Commonwealth's consent to the Transfer of Land and Subsidy sought by the Entitled Applicant.

8.4Instalment Relief

The parties agree that where the Bank provides Instalment Relief, such relief will be granted by:

(a)a reduction in the monthly instalments of the Borrower under the Specified Portfolio Asset or Subsidised Advance and an extension in the repayment term of that Specified Portfolio Asset or Subsidised Advance to cover the cost of such reduction, thereby extending the period over which the Commonwealth pays Subsidy to the Bank; and

(b)The incorporation in the Limit of the Subsidised Advance Loan Account applicable to the Specified Portfolio Asset or Subsidised Advance of;

(i)part or all of the amount of Arrears outstanding in that Subsidised Advance Loan Account at the date of effect of the Instalment Relief; and

(ii)unpaid interest where agreed instalments are reduced as a result of the grant of Instalment Relief.

8.7Failure to meet lending criteria

In the event that a Certificate of Entitlement indicates that:

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(iii) Instalment Relief is to be granted,

and the Entitled Applicant fails to meet the lending criteria set out in Schedule "C", the Bank agrees:

(a)that the Bank shall provide to the Commonwealth its reasons in writing as to why the Entitled Applicant has failed to meet the lending criteria set out in Schedule "C"; and

(b)at the election of the Commonwealth, the Bank and the Commonwealth shall meet to discuss what arrangements, if any, suitable to the Bank and the Commonwealth can be made whereby the Bank will provide the advance or instalment relief to the Entitled Applicant.