Recovery of sum wrongly paid
9.—(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.