27Cancellation of subsidy

#### 27 Cancellation of subsidy (1) Where the Commonwealth is paying subsidy on a loan to a person and the Secretary is satisfied that: (a) the relevant entitlement certificate was issued to the person as a result of a false or misleading statement by the person; or (b) when the certificate was issued to the person, the person was not entitled to it; or (c) all or any of the criteria set out in subsection 20(2) were not in fact met, although the subsidy became payable on the basis that the Secretary was, at the time the subsidy became so payable, satisfied that they had been met; the Secretary may, by written notice given to the person, notify the person that subsidy will not be paid on the loan on or after the date of the notice. (2) Where: (a) the Commonwealth is paying subsidy on an increase on an advanced amount under a subsidised loan to a person; and (b) the Secretary is satisfied that the approval under section 15 relating to the increase was granted as a result of a false or misleading statement by the person; the Secretary may, by written notice given to the person, notify the person that subsidy will not be paid in respect of the amount of the increase on or after the date of the notice. (3) The Secretary must cause a copy of a notice to be given to the Bank in accordance with the agreement. (4) Where the Secretary gives a notice under subsection (1) in relation to subsidy on a loan: (a) subsidy stops being payable on that loan on and after the date of the notice; and (b) all amounts of subsidy paid on the loan before that date are taken, for the purposes of section 31, to be amounts not payable under this Act. (5) Where the Secretary gives a notice under subsection (2) in relation to subsidy on an increased amount of a loan: (a) subsidy stops being payable on the amount of the increase on and after the date of the notice; and (b) all amounts of subsidy paid on the amount of the increase before that date are taken, for the purposes of section 31, to be amounts not payable under this Act.