Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this Part, subsidy is payable to the Bank on a loan made by the Bank in accordance with the agreement.
(2) Subsidy does not become payable on a loan to a person unless and until the Secretary is satisfied that:
(a) the person is an entitled person; and
(b) the person's subsidy period has not ended; and
(c) each borrower has consented in writing to the recovery by the Commonwealth in accordance with the agreement and this Act of amounts to which subclauses 8.2 and 8.4 of the agreement apply; and
(d) the person, or the person's spouse or de facto partner, is not the owner of any house in Australia other than that in respect of which the loan was made; and
Note: See section 5.
(e) the house in respect of which the loan was made:
(i) is owned by the person, or by the person and the person's spouse or de facto partner as joint tenants (whether or not the spouse or de facto partner is also an entitled person) and is not owned by any other person; and
(ii) is used by the person as a home for the person and members of his or her family (if any); and
(iii) is suitable for use as such a home, having regard to all the relevant circumstances, including the person's financial position, the needs of the members of his or her family (if any) and the location of the house; and
(iv) is not ordinarily used for the purpose of carrying on a business, trade or profession; and
(f) except where the agreement provides otherwise, the loan is secured by a first mortgage over the property to which it relates; and
(g) the loan has been used to enable the person to do any of the following things:
(i) to buy land and build the house to which the loan relates on the land;
(ii) to build that house on land already owned by the person;
(iii) to buy that house together with the land on which it is built;
(iv) if that house was partly built and already owned by the person--to complete the house;
(v) if that house was complete and already owned by the person--to enlarge, renovate or repair the house, or to construct any permanent improvements on the land on which the house is built;
(vi) to discharge another loan used by the person for a purpose mentioned in subparagraph (i), (ii), (iii), (iv) or (v).
(3) Subsidy is not payable in respect of a house situated outside Australia.
(4) Subsidy is not payable on a loan to a person in respect of a house if:
(a) subsidy was payable on a previous loan to the person in respect of the same house; and
(b) that subsidy was cancelled under section 28 at the person's request; and
(c) more than 12 months has elapsed since subsidy stopped being payable as a result of that cancellation.
(5) Subject to this Part, subsidy may be payable on 2 or more successive loans by the Bank to the same subsidised borrower, whether in respect of the same house or different houses.
(6) For the purposes of paragraphs (2)(e) and (2)(g), but without limiting their meaning:
(a) a person is taken to own a house in respect of which a loan is made if the person has an interest in the house as a lessee under a Crown lease granted for a term of more than 50 years; and
(b) a person is taken to have bought a house if the person has bought an interest in the house as such a lessee.