PART 5N.I.Repayment by Overseas Borrowers

Repayment by income-related instalmentsN.I.

70.—(1) Where the Department is satisfied that a borrower to whom regulation 68 applies has complied with a requirement to provide information under regulation 67, the Department may determine that the borrower may repay a loan by income-related instalments in accordance with this regulation.

(2) The first such instalment must be paid on a date determined by the Department being a date not more than 2 months later than the date of the determination and subsequent instalments must be paid on the same date in each subsequent month for up to 12 months.

[F1(2A) The Department must determine the amount of each instalment and must ensure that the total amount of all instalments paid in the period up to 12 months from the date of the first instalment referred to in paragraph (2) must not exceed the relevant amount.]

F2(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3(4) The relevant amount is 9% of the gross income which the Department consider the borrower is likely to receive in the next 12 month period following the date of the determination referred to in paragraph (2), disregarding—

(a)income up to the applicable threshold, calculated in accordance with regulation 70A; and

(b)income in respect of which the Department is satisfied that repayments are likely to be made under Part 3 or 4.]

(5) The amount of [F4each instalment] must be stated in the determination.

(6) At the end of the period referred to in paragraph (2), the borrower must pay fixed instalments under regulation 69, subject to a further determination under paragraph (1).

(7) At any time during the period referred to in paragraph (2), the Department may make a re-determination under paragraph (1).

Textual Amendments

Commencement Information

I1Reg. 70 in operation at 6.4.2009, see reg. 1(1)