6. Interest on loans made under 1978 agreement
(1) In this regulation ¾
}home purchaser~ has the same meaning as that expression has in clause 24 of the agreement;
}the agreement~ means the agreement referred to in the Housing Agreement (Commonwealth and State) Act 1973 3, as amended, as the second supplemental agreement.
(2) The object of this regulation is to enable the Commission, as a lending authority of the State approved by the Minister for the purposes of clause 24 of the agreement, to on-lend moneys to home purchasers at rates of interest consistent with those applicable under clause 25 of the agreement.
(3) Notwithstanding section 33 or 42 of the Act when moneys lent to the Commission pursuant to clause 24 of the agreement are used to grant financial assistance to a home purchaser the contract of sale, mortgage or other instrument relating to the transaction shall ¾
(a) specify such rate of interest being ¾
(i) not less than 6% per annum; and
(ii) not greater than a rate equivalent to 1% per annum below the long term bond rate for the year in which the transaction is entered into,
as the Commission considers appropriate having regard to the income of the home purchaser and his family; and
(b) provide that the rate of interest shall ¾
(i) increase by ½% per annum at the end of the first financial year that occurs wholly after the transaction is entered into and by ½% per annum at the end of each subsequent financial year of the transaction until a rate equivalent to 1% per annum below the long term bond rate for a financial year is reached; and
(ii) thereafter be varied for any financial year of the transaction according to any variation in the long term bond rate for that financial year.
(4) For the purposes of this regulation the long term bond rate for a year shall be the coupon rate on the longest term security of the last Commonwealth public loan issued prior to 1 May that last occurred prior to that year.