12Criteria for issue of certificate

#### 12 Criteria for issue of certificate (1) The Secretary must not issue an entitlement certificate to a person unless satisfied that: (a) the person is not the holder of an entitlement certificate that is in force; and (b) the person: (i) is an eligible person, or was an eligible person when he or she applied for the certificate; or (ii) is the surviving spouse or de facto partner of such an eligible person; and (c) if the person is a member (other than an operational service member, a warlike service member, a rejoining member or a person covered by paragraph (h) of the definition of eligible person)—the person has completed 6 months of effective full‑time service after the end of the person’s basic service period; and (d) if the person is an operational service member under subsection 3A(3)—the person has completed 6 months of effective full‑time service; and (e) if the person is a rejoining member who is not entitled to a subsidy period when he or she becomes a rejoining member—the person has completed 6 months of effective full‑time service after becoming a rejoining member; and (f) the person’s subsidy period has not ended; and (g) the person has not already been issued with an entitlement certificate on or after 1 July 2008. (2) The Secretary must not issue an entitlement certificate to an eligible person who is not a member, otherwise than on an application made under subsection (4) or (5), if: (a) 2 or more entitlement certificates were previously issued to the person; and (b) at least one of those certificates was issued after the day on which the person’s resignation, retirement or discharge from the Defence Force took effect. (3) The Secretary must not issue an entitlement certificate to a person who is a surviving spouse or de facto partner of the kind mentioned in subsection 10(3) (otherwise than on an application under subsection (4) of this section) if: (a) where subsection 30(6) applies in relation to the person—one entitlement certificate was previously issued to the person within the period applicable to the person under subsection 10(3); or (b) in any other case—2 entitlement certificates were previously issued to the person within that period. (4) In spite of anything else in this Division, but subject to subsection (5), where a subsidised loan to a person who was an entitled person is discharged as a result of: (a) the destruction of the house to which the loan relates; or (b) the compulsory acquisition of the property to which the loan relates by the Commonwealth or a State or Territory, or by a government authority; or (c) the sale or transfer of the property to which the loan relates under an order of a court, other than an order made under the Bankruptcy Act 1966 or in proceedings for the recovery of a judgment debt; the Secretary must issue to the person an entitlement certificate if the person applies for the certificate within 12 months after the loan is discharged. (5) In spite of anything else in this Division, where: (a) a subsidised loan is made to a person; and (b) the person is discharged from the Defence Force on or after the commencing day because of any compensable disability suffered by the person (whether or not the person is an incapacitated person); and (c) the subsidised loan is discharged as a result of the sale or transfer of the property to which the loan relates; the Secretary must issue to the person an entitlement certificate if, and only if: (d) the person applies for the certificate within 12 months after the loan is discharged; and (e) the Secretary is satisfied that the sale or transfer was reasonably necessary as a result of that disability. (6) An entitlement certificate must not be issued after the finishing day.