2728 NEW ZEALAND GAZETTE, No. 119 13 AUGUST 2009

of the key eligibility criteria (up to $15,000.00 for a single person and $30,000.00 for a couple who are married, or in a civil union or de facto relationship) are intended to be used for living expenses and for these purposes.

13.4 While the loan balance remains owing the client must not:

(a) enter into, or allow to be entered into, any agreement, deed, mortgage, charge, encumbrance, or other arrangement (other than rates deferment or postponement) that charges or gives security over the former home; or

(b) draw down or obtain, or allow to be drawn down or obtained, any advance or further advance under and secured by any mortgage, charge, or other security over the former home at the date the loan agreement was entered into (for example, a reverse equity mortgage).

13.5 The client is required to contribute the New Zealand Superannuation, or any other benefit, that he or she receives, less the personal allowance, to the cost of the contracted care services provided to him or her. The amount to be advanced under the loan agreement will be reduced accordingly.

13.6 The Ministry of Health will send a statement of the loan balance to the client on a quarterly basis.

13.7 While the client remains a resident assessed as requiring care, the Crown will continue to make advances under the loan agreement towards the cost of contracted care services in relation to the client and paid to the appropriate provider on the client’s behalf until the first of the following events occurs (the “termination event”):

(a) the client dies or earlier permanently leaves long-term residential care:

(b) the former home is sold or otherwise disposed of (or in the case of a licence to occupy, it is terminated):

(c) a new or reviewed means assessment determines that the client’s assets are equal to or below the applicable asset threshold:

(d) the period of the loan specified in the loan agreement ends:

(e) advances made reach the monetary limit specified in the loan agreement.

13.8 The amount from time to time advanced by the Crown under paragraph 13.7 is the cost of contracted care services in relation to the client not exceeding the maximum contribution less the amount of the client’s contribution in accordance with paragraph 13.5.

13.9 If a new or reviewed means assessment determines that the client’s assets are equal to or below the applicable asset threshold, the client will transfer from the loan scheme to a subsidy. The Crown’s liability to make advances towards the cost of contracted care services under the loan agreement will cease with the close of the day before the date that the funder’s liability arises under section 141(3) or (4) of the Act, the client will be given notice of the loan balance, and the repayment provisions of the loan agreement will apply.

13.10 If the client transfers from the loan scheme to a subsidy and any amounts were advanced under the loan agreement between the day that the funder’s liability arises and the day that the means assessment or review was completed, an appropriate adjustment to the loan balance will be made before that balance is notified.

13.11 If the client transfers from the loan scheme to a subsidy and it is discovered before the loan balance is repaid that the client or his or her spouse or partner had any assets that were not taken into account in the means assessment or review that determined the client’s eligibility for subsidy, or had any assets that were taken into account but whose values were understated, the Ministry of Social Development may increase the amount of loan balance repayable by the amount of any subsidy paid to a provider in respect of the client to which the client was not entitled.

13.12 During the term of the loan agreement, the client and any other persons who are parties to the loan agreement must promptly notify the Ministry of Social Development of any of the following circumstances:

(a) a change in the financial circumstances of the client or of the client’s spouse or partner (other than any increase in the client’s loan balance or in the value of the former home or any other of their assets):

(b) the death of the client’s spouse or partner:

(c) the client’s spouse or partner becoming a resident assessed as requiring care:

(d) a change in the relationship status of the client or of the client’s spouse or partner.

13.13 The Ministry of Social Development will carry out a review of the client’s means assessment:

(a) on the occurrence of any of the events referred to in paragraph 13.12(b) to (d); or

(b) on notification under paragraph 13.12(a) or by the Ministry of Health of information that is sufficient for the Ministry of Social Development to consider that the client’s assets have fallen or are about to fall below the applicable asset threshold.

Repayment of loan

13.14 The amount of loan balance repayable must be repaid:

(a) except where paragraph (b) applies, not later than 12 months after the client dies; or

(b) if the client dies and his or her spouse or partner is a resident assessed as requiring care who also has a loan secured over the former home, not later than 12 months after that spouse or partner dies; or

(c) immediately on the earlier sale or other disposal of the former home; or

(d) in the case of a licence to occupy, immediately after the amount payable or repayable on its earlier termination becomes due for payment.

13.15 If repayment is late, default interest on the amount of loan balance repayable may be charged at the rate stated in the loan agreement and added to the amount of loan balance repayable.

13.16 The amount of loan balance repayable must be repaid before the security or obligation under the loan agreement, and any caveat on the title to the former home, will be released.