11.15Termination/Suspension of Subsidy Payments and Recovery of Subsidy from Borrower
Notwithstanding the provisions of any other Clause in this Agreement, the Commonwealth may elect to recover from the Borrower in the manner provided for under the Amended Act or may terminate and/or suspend future Subsidy payments in respect of the following:
(a)a Borrower who, having obtained a Subsidised Advance pursuant to the Amended Act, a Portfolio Contract of Sale or a Corporation Advance under a Specified Portfolio Asset, is discovered to have made a false statement in order to obtain a Certificate of Entitlement, a Portfolio Contract of Sale or a Corporation Advance;
(i)is discovered not to have been entitled to a Certificate of Entitlement, a Portfolio Contract of Sale or a Specified Portfolio Asset at the time when the Certificate of Entitlement was issued to the Borrower or the Corporation Advance secured by the Specified Portfolio Asset was received by the Borrower or the Portfolio Contract of Sale was executed by the Borrower;
(ii)purports to transfer a holding without a Certificate of Entitlement having been issued which provides for Commonwealth consent to the Transfer of Land and Subsidy to the proposed transferee;
(iii)is discovered to have used the Subsidised Advance or Corporation Advance for a purpose other than that for which it was made;
(iv)is a transferee of a holding in respect of which the Commonwealth has issued a Certificate of Entitlement consenting to a Transfer of Land and Subsidy and has without reasonable excuse failed to comply with an undertaking given by that transferee under Sub-section 22(2) of the Amended Act; or
(v)becomes the husband or wife of another Borrower,
(vi)is discovered to have sold a 'holding' or 'retirement village accommodation' to which subsidy relates and has not acquired another 'holding' or 'retirement village accommodation' as a substituted security within six months in accordance with Sub-clause 11.2A.
(b)where the Bank takes action to enforce a Portfolio Contract of Sale or a security for which the Subsidised Advance or a Corporation Advance was provided and the Bank has not within three (3) months sold the property and discharged the loan outstanding to it thereon; or
(c)where an assignor has agreed to transfer a right of residence in a Retirement Village, or has given up a right of residence in a Retirement Village; or
(d)where the assignee has agreed to transfer all or part of his or her interest in a Retirement Village, or has terminated the assignor's right of residence in a Retirement Village.
11.15A Termination of Subsidy Payments and Recovery of Subsidy from the Estate Following Death of the Eligible Person and/or Spouse.
Notwithstanding the provisions of any other Clause in this Agreement, where Subsidy is terminated in accordance with Section 27A of the Defence Service Homes Act 1918 the Commonwealth may elect to recover from the estate of the Borrower in the manner provided for under the Act.
11.16 — Notice of termination of Subsidy payments to Bank
Where the Commonwealth elects to terminate future Subsidy payments to the Bank in respect of a Specified Portfolio Asset pursuant to Sub-clause 11.5(a) then it shall give the Bank one month's notice of its intention to do so. If prior to the completion of that one month period the Bank gives the Commonwealth notice that it intends to take action to enforce its security with respect to that Specified Portfolio Asset then the Commonwealth shall continue to pay Subsidy until the Bank has discharged its loan, or for three (3) months, whichever is the earlier. Any Subsidy paid to the Bank which is recoverable from the Borrower pursuant to the Amending Act shall be paid to the Commonwealth by the Bank as required by the Amending Act from any moneys due to the Borrower from the proceeds of any sale by the Bank of his land or land and dwelling house.
11.17 — Entitlement of Bank to charge applicable interest rate for Subsidised Advances
The Commonwealth acknowledges that it shall be a term of any Subsidised Advance made by the Bank to a Borrower that in the event that Subsidy is, for any reason whatsoever, terminated by the Commonwealth in respect of that advance, the Bank shall be entitled to charge the interest rate applicable to similar loans provided by the Bank to borrowers generally from the date of termination of Subsidy and for that purpose the Bank may close the Subsidised Advance Loan Account and open a new account in the name of the Borrower.
11.18 Entitlement of Bank to charge applicable interest rate for Specified Portfolio Assets
The Commonwealth acknowledges that following Royal Assent to the Veterans' Affairs (1995-96 Budget Measures) Legislation Amendment Act 1995, it shall be a term of any Specified Portfolio Asset which vested in the Bank that in the event that Subsidy is, for any reason whatsoever, terminated by the Commonwealth in respect of that Specified Portfolio Asset, the Bank shall be entitled to charge the interest rate applicable to similar loans provided by the Bank to borrowers generally from the date of termination of Subsidy and for that purpose the Bank may close the Subsidised Advance Loan Account and open a new account in the name of the Borrower."