Section 27. (1) Where the Commonwealth is paying subsidy in relation to a specified portfolio asset entered into by a person and the Secretary is satisfied that:
(a)the person obtained the benefit of any advance or assistance secured by that asset as a result of a false statement made by the person;
(b)the person was not, when he or she received that benefit, entitled to do so;
(c)the person used the amount secured by the asset for a purpose other than that for which it was made; or
(d)t — he person has, without reasonable excuse, failed to comply with an undertaking given, or taken to have been given, by the person to the Secretary under subsection 22(2);
and the Secretary decides that the subsidy should be cancelled, the Secretary shall, under subclause 11.16 of the agreement, give the Bank one month's notice of the intended cancellation of the subsidy.
(2) Where the Secretary gives the Bank a notice under subsection (1), the subsidy to which the notice relates shall be taken to have been cancelled, and ceases to be payable, at the end of any period during which the Commonwealth is required to continue paying subsidy under subclause 11.16 of the agreement.
(3) The Secretary shall cause a copy of a notice under subsection (l) to be given to the relevant purchaser, borrower or transferee.
(4) Where subsidy ceases to become payable under this section the Secretary shall notify the relevant purchaser, borrower or transferee accordingly.
27A (1) Subject to subsection (3), the Secretary may cancel subsidy on a subsidised advance in respect of a person, or the assignee of a person, if:
(a)the person has died; and
(b)3 months has elapsed from the date on which the person died; and
(c)the Secretary is satisfied that there is no surviving spouse or de facto partner of the person, to whom a certificate of entitlement could be issued under section 22, in relation to the land or land and dwelling-house concerned, or in relation to the right of residence in the retirement village concerned (as the case requires); and
(d)the Secretary considers it appropriate to cancel the subsidy.
(2) Subject to subsection (3), the Secretary may cancel subsidy in relation to a portfolio asset entered into by a person if:
(a)the person has died; and
(b)3 months has elapsed from the date on which the person died; and
(c)the Secretary is satisfied that there is no surviving spouse or de facto partner of the person, to whom a certificate of entitlement could be issued under s — ection 22, in relation to the land or land and dwelling-house concerned, or in relation to the right of residence in the retirement village concerned (as the case requires); and
(d)the Secretary considers it appropriate to cancel the subsidy.
(3) If subsidy is being paid in respect of a 2 persons who are spouses or de facto partners of each other who, under subsection 4A(1), are treated together as an eligible person for the purposes of this Act, the Secretary may only cancel subsidy under subsection (1) or (2) if:
(a)both the wife and husband have died; and
(a)3 months has elapsed from the death of the spouse or de facto partner who died last.
(4) If the Secretary cancels subsidy under subsection (1) or (2), the Secretary must:
(a)give a notice of cancellation to the executor or personal representative of the person who has died; and
(b)give a copy of the notice of cancellation to the Bank; and
(c)in the case of an assigned advance - give a copy of the notice of cancellation to the assignee.
(5) The cancellation takes effect, and the subsidy concerned ceases to be payable, on the date specified in the notice, being a date not earlier than the date of the notice.
(6) If the Secretary cancels subsidy under subsection (1) or (2), the Bank may, from the date when the cancellation of subsidy takes effect, charge an interest rate in relation to the advance that is an interest rate applicable to similar loans provided by the Bank to mortgagors generally.