69.—(1) This regulation applies where—
(a)an application is made for payment of the whole or part of the amount repayable in relation to a Children’s Bond, except an application made in the event of the death of the holder; and
(b)the application is made before the end of the term which is current on the date the application is received.
(2) Subject to paragraph (3), the Director of Savings must deduct from the amount that would otherwise have been payable an early repayment penalty calculated as follows—
P = R × I% × (90/365)
where—
P is the early repayment penalty;
R is the amount of the payment requested in the application; and
I% is the annual rate of interest fixed for the current term.
(3) The Director of Savings may decide not to deduct the early repayment penalty if satisfied that, in the particular circumstances, it would be unjust.
(4) For the purposes of regulation 73, where a payment has been made subject to the deduction of an early repayment penalty, the Director of Savings shall be treated as having paid the whole of the amount repayable in relation to the Children’s Bond.