SCHEDULE 4Direct payments to qualifying lenders
Recovery of sum wrongly paid9
1
In the following circumstances, a qualifying lender must at the request of the Secretary of State repay any amount paid to the lender under regulation 17(1) which ought not to have been paid.
2
The circumstances are that, in respect of a claimant—
a
the loan payments are terminated under regulation 9(2);
b
the qualifying loan or alternative finance arrangement in respect of which owner-occupier payments are made has been redeemed; or
c
both of the conditions in sub-paragraphs (3) and (4) are met.
3
The first condition is that the amount of each loan payment determined under regulation 10 is reduced as a result of—
a
the standard rate determined under regulation 13 having been reduced; or
b
the amount outstanding on the qualifying loan or alternative finance arrangement having been reduced.
4
The second condition is that no corresponding reduction was made to the amount calculated in respect of the qualifying lender under paragraph 2 or 3 of this Schedule.
5
A qualifying lender is not required to make a repayment in the circumstances described in sub-paragraph (2)(a) unless the Secretary of State’s request is made before the end of the period of two months starting with the date on which the loan payments are terminated.