26Payment by applicant of interest on progress payments

26 Payment by applicant of interest on progress payments

(1) Where the Corporation erects a dwelling‑house on behalf of an applicant for the purchase of a dwelling‑house erected under section 17 of the Act, the applicant shall be liable to the Corporation for interest on progress payments made to a contractor from the date of each respective payment by the Corporation, and such interest shall be paid to the Corporation in such manner and at such time or times as the Corporation in each case determines.

(2) Interest referred to in subregulation (1) is payable:

(a) where the amount of advance, in the particular case, does not exceed $12,000 — at the rate of 3.75 per cent per annum;

(b) where the amount of advance, in the particular case, exceeds $12,000 but does not exceed $15,000:

(i) at the rate of 3.75 per cent per annum in respect of so much of the amounts paid in progress payments as equals that portion of the amount of advance that does not exceed $12,000; and

(ii) at the rate of 7.25 per cent per annum in respect of any further amounts paid in progress payments; and

(c) where the amount of advance, in the particular case, exceeds $15,000:

(i) at the rate of 3.75 per cent per annum in respect of so much of the amounts paid in progress payments as equals that portion of the amount of advance that does not exceed $12,000;

(ii) at the rate of 7.25 per cent per annum in respect of so much of the amounts paid in progress payments as equals that portion of the amount of advance that exceeds $12,000 but does not exceed $15,000; and

(iii) at the rate of 10 per cent per annum in respect of any further amounts paid in progress payments.

Part VI Advances on mortgage for purposes of homes