28VDWorking out the maximum drawdown net of offset for a credit contract

#### 28VD Working out the maximum drawdown net of offset for a credit contract (1) To work out the maximum drawdown net of offset for a credit contract under which a consumer is a debtor, for the year to which the drawdown cap applies in relation to the credit contract, first work out, for each day during the year, the difference between: (a) the amount of debt actually deferred under the credit contract, as the amount stands on that day, excluding any excluded amounts but including any interest, fees and charges that do not relate to excluded amounts; and (b) the total of all amounts standing to the credit of the consumer in all offset accounts held by the consumer on that day in relation to the credit contract. (2) The maximum drawdown net of offset for the credit contract, for the year to which the drawdown cap applies in relation to the credit contract, is the greatest amount worked out under subregulation (1) for any day during the year. (3) An excluded amount is an amount of credit that: (a) is provided to a consumer under a credit contract; and (b) relates to a reverse mortgage, a line of credit facility or a home renovation or improvement facility. (4) An offset account, held by a consumer who is a debtor under a credit contract, means a facility held by the consumer in relation to which either of the following applies: (a) the amount standing to the credit of the facility at a particular time is notionally offset against the amount of credit provided to the consumer under the credit contract that has not been repaid at that time, and interest is calculated by reference to the resulting notionally reduced amount of credit; (b) the interest payable under the credit contract is periodically reduced by an amount that would otherwise accrue as interest or other earnings on the amount standing to the credit of the facility from time to time.