# The Home Purchase Assistance (Commutation of Repayments) Order 1994, Article 2: Citation, commencement and interpretation.


(1) The terms of relevant advances shall be varied so as to commute what would otherwise be a number of repayments by an institution into a single repayment calculated in accordance with paragraph (2) and that single repayment shall be paid by each institution to the Secretary of State on the repayment date.
(2) The single repayment shall be the aggregate of relevant advances after each relevant advance has been commuted in accordance with the following formula—
C = A ( 1 + R ) N 12 Where—
C the commuted advance;
A the amount of the advance;
R the average gross redemption yield appearing in the Financial Times last published before 8th April 1994 for medium (8%-10¾%) British Government stock of up to five years to redemption, expressed as a decimal; and
N the number of complete calendar months during the period beginning on the repayment date and ending immediately before the date on which, but for this Order, A would have been repayable, on the assumption that it would have been repayable at the end of the period of 57 months starting on the date on which the advance was made.

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Source: https://www.legislation.gov.uk/uksi/1994/548/article/2 (the official version)
Page: https://openlegislation.uk/home-purchase-assistance-commutation-of-repayments-order-1994/article-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.