517Arrangements between System Governor and debtors

517  Arrangements between System Governor and debtors

 (1) The System Governor may, on behalf of the Commonwealth, enter into an arrangement in writing with a debtor in relation to a recoverable amount under which the debtor is to pay the recoverable amount, or the outstanding amount of the recoverable amount, in a way set out in the arrangement (including payment in instalments).

 (2) An arrangement entered into under subsection (1) has effect, or is taken to have had effect, on and after the day specified in the arrangement as the day the arrangement commences (whether that day is before, on or after the day the arrangement is entered into).

 (3) If an arrangement entered into under subsection (1) does not specify a day as mentioned in subsection (2), it has effect on and after the day on which it is entered into.

 (4) The System Governor may, on behalf of the Commonwealth, in writing, terminate or alter an arrangement entered into under subsection (1):

 (a) at the debtor’s request; or

 (b) after giving 28 days’ notice, in writing, to the debtor of the proposed termination or alteration; or

 (c) without notice, if the System Governor is satisfied that the debtor has failed to disclose material information about the debtor’s true capacity to pay the recoverable amount, or the outstanding amount of the recoverable amount.