10 Section 31 amended (Repayment obligations that apply to New Zealand-based borrowers and overseas-based borrowers)

• In section 31(1)(A), replace “subparts 1 to 3 apply to that borrower” with “subparts 1 and 2 apply to that borrower, subject to section 31A”.

10A New sections 31A (Repayment holiday from New Zealand-based repayment obligation)

• After section 31, insert:

  “31A Repayment holiday from New Zealand-based repayment obligation

  • “(1) A New Zealand-based borrower may, by notifying the Commissioner, apply to the Commissioner for a repayment holiday.

    “(2) The Commissioner may grant a repayment holiday, not exceeding 365 days in duration, to a borrower who applies under subsection (1) if satisfied that the borrower has not reached the New Zealand-based borrower's limit.

    “(3) For the purposes of this section, a borrower reaches the New Zealand-based borrower's limit if the borrower has had, in respect of his or her current loan, 1 or more repayment holidays, granted under this Act, for a period of 365 days or for periods that total 365 days.

    “(4) For the avoidance of doubt, a New Zealand-based borrower does not reach the borrower's limit if 1 or more repayment holidays have been granted under this Act, for a period of 365 days or for periods that total 365 days, in relation to a student loan, the consolidated loan balance of which has been repaid.

    “(5) In this section, repayment holiday means a period during which a New Zealand-based borrower's repayment obligation is reduced to zero.”