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26.—(1) For the purposes of these Regulations a person (the “defaulting person”) is in default of this Chapter (“Chapter 3 default”) if—
(a)an ETII certificate or QHS certificate issued to that person is revoked as a result of that person having made a materially incorrect or misleading statement in an ETII application or QHS application;
(b)that person fails to comply with regulation 16(7) or 17(7);
(c)that person is a certified ETII operator or a provider and makes an arrangement or takes any other step the purpose or main purpose of which is to increase the ETII proportion or QHS proportion applying to any person in respect of any benefit calculation period.
(2) Where a person is in Chapter 3 default, the “default benefit amount” in respect of the default is the amount by which the scheme benefit provided to any person in respect of all benefit calculation periods is greater than it would have been but for the Chapter 3 default.
(3) The Secretary of State may by notice to a defaulting person require the defaulting person to pay the default benefit amount to the Secretary of State.
(4) Where the Secretary of State requires a defaulting person to pay the default benefit amount, the Chapter 3 default is not a benefit redetermination event for the purposes of regulation 21(6) or a supply redetermination event for the purposes of regulation 24.
(5) Where an arrangement or step referred to in paragraph (1)(b) is made or taken by two or more persons—
(a)each of those persons is a defaulting person in relation to the Chapter 3 default;
(b)the Secretary of State may require payment of the default benefit amount by any one or (as to different parts thereof) more of those persons;
(c)in determining the default benefit amount, an amount of scheme benefit is not counted more than once by virtue of being passed on by one person to another.
(6) An amount payable to the Secretary of State by a defaulting person in respect of a default benefit amount is recoverable as a civil debt by the Secretary of State.
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