Payments to stop if student is found never to have been eligible for financial supplement
12T Payments to stop if student is found never to have been eligible for financial supplement
If:
a student is a party to a financial supplement contract with a participating corporation; and
the Secretary decides that the statement contained in the notice given to a student under paragraph 12F(1)(b) that the student was an eligible student in respect of the year or the part of the year to which the contract relates was incorrect;
the Secretary must give written notice to the student and to the corporation stating that the student had never been eligible for financial supplement in respect of that year or that part of that year.
If notice is so given, then, unless the decision of the Secretary under subsection (1) is set aside or varied:
as from the time when the notice was given to the corporation, the corporation is discharged from liability to make further payments to the student under the contract; but
if, despite paragraph (a), the corporation makes any payments to the student after that time, any amounts so paid after the end of 4 weeks after the notice was given to the corporation:
are taken not to be payments of financial supplement made under the contract; and
are repayable by the student to the corporation; and
may be recovered by the corporation as a debt due to it by the student.
This section has effect subject to section 12ZX.
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