Clause 6. Exercise of Discretion

6

Exercise of Discretion

6.1

If you determine that a Particular Immediate Need exists, and that an Advance would best meet the Immediate Needs of the Beneficiary, you are to have regard to the matters set out in clause 6.3 in exercising your discretion whether to make an Advance.

6.2

In the exercise of your discretion, if you determine that a Beneficiary has exceptional circumstances, you may, after having regard to the matters set out in clause 6.3-

(a)

make an Advance where the Beneficiary and his or her Spouse or partner has Cash Assets or Income exceeding the limits set out in clause 2.3; or

(b)

make an Advance in excess of any limit set out in clause 4 or clause 7.1.3; or

(c)

recover an Advance at a lower rate than set out in clause 5 or clause 7.2.4.

6.3

The matters referred to in clause 6.1 and 6.2 are-

(a)

the Beneficiary's ability to repay the Advance;

(b)

whether the Beneficiary could reasonably have been expected to have made provision for the Particular Immediate Need;

(c)

the extent to which not making an Advance, or an Advance in excess of the limit, or requiring recovery at the rate set out in clause 5, would-

(i)

worsen the Beneficiary's position, or

(ii)

increase or create any risk to the life or welfare of the Beneficiary or the Beneficiary's Spouse or partner or any Dependent Child, or

(iii)

cause serious hardship to the Beneficiary, or the Beneficiary's Spouse or partner or any Dependent Child,

(d)

any other matters that you consider to be relevant, in the circumstances of the particular case.

6.4

You may consider that the Beneficiary's application for an advance should be refused if you are satisfied that the Beneficiary (B), or B's spouse or partner (C), has failed-

(a)

to take reasonable steps to reduce his or her costs or increase his or her income or better manage his or her finances; or

(b)

to take all reasonable steps to obtain any assistance towards his or her costs from any other source from which B or C may be entitled to assistance; or

(c)

to comply with any requirement of MSD to undertake a budgeting activity under section 348 of the Act.