(1)

This section applies to the amount of each payment that the Council purported before 1 July 2004 to determine that a registered health benefits organization was to make into the Reinsurance Trust Fund on a particular date under subsection 73BC(9) of the National Health Act.

(2)

By force of this section, late payment validation penalty of an equal amount is taken to have been imposed on the organization on that date.

(3)

The amount of late payment validation penalty for which the organization is liable is:

(a) reduced by the sum of the amounts the organization paid into the Reinsurance Trust Fund in accordance with the determination the Council purported to make under subsection 73BC(9) of the National Health Act; and
(b) increased by so much of the sum of those amounts as the organization recovers from the Council or the Reinsurance Trust Fund.

(4)

Amounts paid by an organization in accordance with determinations the Council purported to make under subsection 73BC(9) of the National Health Act are taken to be applied to the late payment validation penalties in the order in which the Council purported to make the determinations.