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Paragraph 11 The standard rateI1

Northern Ireland Not yet in force

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The standard rate is the rate of interest applicable to a loan which qualifies under this Schedule and—

(a)

except where sub-paragraph (2) applies, is 7·74 per cent. per annum, or

(b)

where sub-paragraph (2) applies, shall equal the actual rate of interest charged on the loan on the day the housing costs first fall to be met.

(2)

This sub-paragraph applies where the actual rate of interest charged on the loan which qualifies under this Schedule is less than 5 per cent. per annum on the day the housing costs first fall to be met and ceases to apply when the actual rate of interest on that loan is 5 per cent. per annum or higher.

(3)

Where in a case to which sub-paragraph (2) applies, the actual rate of interest on the loan rises to 5 per cent. per annum or higher, the standard rate applicable on that loan shall be determined in accordance with sub-paragraph (1)(a).

Annotations

Commencement

I1

Sch. 2 para. 11 in operation at 7.10.1996, see reg. 1(1)