PART 2Provisions Applicable to all Repayments
Interest and penaltiesI110
1
Interest and penalties charged under Parts 3 or 4 are not added to the principal outstanding, are not part of the loan, and payments of such interest or penalties are not credited against the principal outstanding.
2
Any repayments received by the Department will be applied in reduction or satisfaction of the liabilities of a borrower in the following order:—
a
first, any outstanding penalties, costs, expenses or charges under regulation 19 or 20;
b
second, any outstanding penalties, costs, expenses or charges under Part 5;
c
third, any outstanding interest;
d
fourth, any outstanding principal, which will be reduced or satisfied from the date of receipt.