Interest and penaltiesU.K.
This section has no associated Explanatory Memorandum
14.—(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 Authority or loan purchaser 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 regulations 24 or 25;
(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.