THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 9 - General provisions relating to claims

SECTION 972   INTEREST  

972(1)  [Interest payable]  

In addition to an amount that is payable to a person out of the Fund in respect of a claim, interest at the rate of 5% per annum or, if another rate is determined in writing by the Board, at that other rate, is payable to the person out of the Fund, on so much of that amount as is not attributable to costs and disbursements, in respect of the period beginning on the day on which the person became entitled to make the claim and ending on:

(a)  if the Board has made a determination under subsection 983(1) to pay that amount in instalments - the day on which that amount would, if no such determination had been made and the money in the Fund were unlimited, have been paid to the person;

(b)  if, because of insufficiency of the Fund, no part of that amount is paid to the person on the day on which that amount would, if the money in the Fund were unlimited, have been so paid - that day; or

(c)  otherwise - the day on which that amount is paid to the person.

972(1A)  [Interest rates limited]  

A rate of interest determined by the Board for the purposes of subsection (1):

(a)  must not exceed the rate that, when the determination is made, is fixed by Rules of Court for the purposes of paragraph 52(2)(a) of the Federal Court of Australia Act 1976; and

(b)  must not be less than 5% per year.

972(1B)  [Interest rate determined]  

As soon as practicable after determining a rate of interest for the purposes of subsection (1), the Board must cause a copy of the determination to be published in the Gazette.

972(2)  [Additional interest]  

Where:

(a)  under subsection (1), interest is payable to a person on an amount in respect of a period; and

(b)  that amount, or a part of that amount, remains unpaid throughout a period beginning immediately after the period referred to in paragraph (a);

then, in addition to that amount and that interest, interest at the prescribed rate is payable to the person out of the Fund on that amount, or on that part of that amount, as the case may be, in respect of that period first referred to in paragraph (b).