The Home Purchase Assistance (Commutation of Repayments) Order 1994

• Citation: S.I. 1994/548
• Sections: 4

Section 1 Citation, commencement and interpretation.

(1) This Order may be cited as the Home Purchase Assistance (Commutation of Repayments) Order 1994 and shall come into force on 7th April 1994.

(2) In this Order—

“institution” means a recognised lending institution liable to repay a relevant advance;

“relevant advance” means an advance—

which, but for this Order, would be repayable on or after the repayment date; and

as respects England and Wales, which the Secretary of State has made to an institution under section 445(1) of the Housing Act 1985 for providing assistance under section 446(1)(a) or (b) of that Act; or

as respects Scotland, which the Secretary of State has made to an institution under section 222(1) of the Housing (Scotland) Act 1987 for providing assistance under section 223(1)(a) or (b) of that Act; and

“repayment date” means 29th April 1994. Commutation.

Section 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—

Where—

the commuted advance;

the amount of the advance;

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

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.

Section 3 Amendments to directions.

(1) Subject to article 4, the Home Purchase Assistance Directions 1978 are amended as follows.

(2) For paragraphs 3 to 10 substitute—

(3) On or before 8th April 1994 each institution shall (without request being made) provide the Secretary of State with sufficient information for the Secretary of State to ascertain the amount (if any) of relevant advances to be repaid by that institution in accordance with the Home Purchase Assistance (Commutation of Repayments) Order 1994.

(3) In paragraph 11 for “under these directions on the date on which it falls due in accordance with paragraphs 8, 9 and 10” substitute “under the Home Purchase Assistance (Commutation of Repayments) Order 1994 on the date on which it falls due”.

(4) At the end of paragraph 17 add—

(d) if relevant to a commuted repayment, until two years after the repayment date.

(5) In paragraph 38(2)—

(a) after the definition of “quarter” insert—

“relevant advance” has the meaning given by the Home Purchase Assistance (Commutation of Repayments) Order 1994;

(b) after the definition of “relevant interest” insert—

“the repayment date” means 29th April 1994;

Section 4 Application

Article 3 shall not apply in relation to an advance made under section 445(1) of the Housing Act 1985 or under section 222(1) of the Housing (Scotland) Act 1987 to which article 2 does not apply.