27Cancellation of subsidy where subclause 11.16 of the Bank agreement applies

#### 27 Cancellation of subsidy where subclause 11.16 of the Bank agreement applies (1) Where the Commonwealth is paying subsidy in relation to a specified portfolio asset entered into by a person and the Secretary is satisfied that: (a) the person obtained the benefit of any advance or assistance secured by that asset as a result of a false statement made by the person; (b) the person was not, when he or she received that benefit, entitled to do so; (c) the person used the amount secured by the asset for a purpose other than that for which it was made; or (d) the person has, without reasonable excuse, failed to comply with an undertaking given, or taken to have been given, by the person to the Secretary under subsection 22(2); and the Secretary decides that the subsidy should be cancelled, the Secretary shall, under subclause 11.16 of the Bank agreement, give the Bank one month’s notice of the intended cancellation of the subsidy. (2) Where the Secretary gives the Bank a notice under subsection (1), the subsidy to which the notice relates shall be taken to have been cancelled, and ceases to be payable, at the end of any period during which the Commonwealth is required to continue paying subsidy under subclause 11.16 of the Bank agreement. (3) The Secretary shall cause a copy of a notice under subsection (1) to be given to the relevant purchaser, borrower or transferee. (4) Where subsidy ceases to become payable under this section the Secretary shall notify the relevant purchaser, borrower or transferee accordingly.