New Zealand Acts

STUDENT LOAN SCHEME ACT 2011 - SECT 146

146 Commissioner may grant relief from late payment interest

1 Subsection (2) applies—

a) if a borrower has been charged with late payment interest; and

b) regardless of whether that late payment interest has been paid, either in whole or in part; and

c) if an application is made under section 145(1)(a) for relief from late payment interest.

2 The Commissioner may, having regard to the circumstances of the case and if the Commissioner considers it equitable to do so, grant relief to the borrower by cancelling as much of the late payment interest as the Commissioner considers equitable.

3 If late payment interest is cancelled,—

a) the borrower's consolidated loan balance is decreased by the amount of the cancelled late payment interest; and

b) if the late payment interest has been added to the borrower's unpaid amount under section 139 (whether calculated at the full late payment interest rate in accordance with section 139(2) or the reduced late payment interest rate in accordance with section 141 ), the borrower's unpaid amount is decreased by the amount of the cancelled late payment interest; and

c) any payment made in excess of the remaining amount of late payment interest payable (if any) by the borrower (an
"excess payment" ) must be offset against the borrower's consolidated loan balance as follows:

i) first, against any unpaid amount; and

ii) secondly, against the loan balance; and

d) the Commissioner must refund any remaining excess payment to the borrower (see sections 199 and 200 ).

Note: 1992 No 141 s 53

History: Section 146: replaced, on 1 April 2013 (applying for 2013–14 and later tax years), by section 61 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).