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10.1.1 Agreement

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Clauses 7.12 and 10.3 of Agreement

7.12 Treatment of Arrears

The Bank agrees that in the treatment of Arrears, it will treat Borrowers no less favourably than its owner-occupied Housing Loan Customers.  In particular, the Bank agrees that it will not impose any penalty interest, fine or other charge on the Borrower.

10.3 Action taken by Bank to enforce security

Except where the Bank's security is in jeopardy the Bank shall not take any action to:

(a) foreclose;

(b) take possession;

(c) exercise a power of sale;

(d) cancel a contract of sale;

(e) appoint a Receiver; or

(f) institute legal proceedings,

under any Portfolio Mortgage, Portfolio Contract of Sale or other security securing the Portfolio Asset or Subsidised Advance without giving the Commonwealth fourteen (14) days notice prior to the Bank taking any such action.  In those cases where the Bank's security is in jeopardy and the Bank has taken any such action then the Bank agrees to give notice to the Commonwealth of the taking of such action within five (5) days.