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7.1.1 Agreement


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,

(i) 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;

(ii) 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;

(iii) 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;

(iv) is discovered to have used the Subsidised Advance or Corporation Advance for a purpose other than that for which it was made;

(v) 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

(vi) becomes the husband or wife of another Borrower,

(vii) 8is 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.

12.5 Recovery of Subsidy

Where the Bank fails to notify the Commonwealth of the circumstances referred to in Sub-clause 10.1 or 12.4 and such failure to notify results in payments of Subsidy which would not otherwise have occurred then the Commonwealth shall be entitled to recover from the Bank, the Borrower or the Entitled Applicant as it deems appropriate immediately as a debt all Subsidy payments that the Commonwealth has incurred and/or paid as a result of the Bank's failure to so notify.

12.5.1 The Commonwealth shall  be entitled to recover as from the last date that notification  should have been given by the Bank.