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(1) | During a moratorium the registered provider’s land may be disposed of only |
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with the regulator’s prior consent (and a purported disposal without consent |
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(2) | Section 145 sets out exceptions to subsection (1). |
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(a) | may be given before the moratorium begins, and |
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(b) | may be subject to conditions. |
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(4) | This section does not prevent a liquidator from disclaiming land as onerous |
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property during a moratorium. |
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(5) | In this section “land” includes a present or future interest in rent or other |
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receipts arising from land. |
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(1) | The regulator’s consent is not required under section 144 for the following |
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(2) | Exception 1 is a letting under— |
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(a) | an assured tenancy, or |
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(b) | an assured agricultural occupancy. |
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(3) | Exception 2 is a letting under what would be an assured tenancy or an assured |
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agricultural occupancy but for any of paragraphs 4 to 8, 12(1)(h) and 12ZA to |
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12B of Schedule 1 to the Housing Act 1988 (c. 50) (tenancies which cannot be |
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(4) | Exception 3 is a letting under a secure tenancy. |
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(5) | Exception 4 is a letting under what would be a secure tenancy but for any of |
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paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (c. 68) (tenancies |
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which are not secure tenancies). |
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(6) | Exception 5 is a disposal to which section 81 or 133 of the Housing Act 1988 |
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applies (disposals requiring Secretary of State’s consent). |
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(7) | Exception 6 is a disposal under Part V of the Housing Act 1985 (right to buy). |
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(8) | Exception 7 is a disposal under the right conferred by section 16 of the Housing |
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Act 1996 (c. 52) (tenant’s right to acquire social housing). |
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(1) | During a moratorium the regulator may make proposals about the future |
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ownership and management of the registered provider’s land, with a view to |
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ensuring that the property will be properly managed by a registered provider. |
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(2) | In making proposals the regulator shall— |
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(a) | have regard to the interests of the registered provider’s creditors as a |
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(b) | so far as is reasonably practicable avoid worsening the position of |
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(3) | Proposals may provide for the appointment of a manager in accordance with |
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section 149 to implement all or part of the proposals. |
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(4) | Proposals may not include anything which would result in— |
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(a) | a preferential debt being paid otherwise than in priority to a non- |
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(b) | a preferential creditor (PC1) being paid a smaller proportion of a |
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preferential debt than another preferential creditor (PC2) (unless PC1 |
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(5) | Proposals relating to a registered provider which is a charity (C1)— |
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(a) | may not require it to act outside the terms of its trusts, and |
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(b) | may provide for the disposal of accommodation only to another charity |
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whose objects the regulator thinks are similar to those of C1. |
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(1) | Before making proposals the regulator shall consult— |
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(a) | the registered provider, |
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(b) | its tenants (so far as is reasonably practicable), |
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(c) | if the registered provider is an industrial and provident society, the |
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Financial Services Authority, and |
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(d) | if the registered provider is a registered charity, the Charity |
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(2) | The regulator shall send a copy of proposals to— |
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(a) | the registered provider and its officers, |
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(b) | its secured creditors, and |
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(c) | any liquidator, administrator, administrative receiver or receiver |
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appointed in respect of the registered provider or any of its land. |
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(3) | The regulator shall also make arrangements for bringing proposals to the |
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(a) | the registered provider’s members, |
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(c) | its unsecured creditors. |
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(4) | If each secured creditor of a registered provider agrees to proposals by notice |
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to the regulator, the proposals have effect. |
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(5) | Proposals may be agreed with modifications if— |
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(a) | each secured creditor consents by notice to the regulator, and |
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(b) | the regulator consents. |
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(6) | The regulator shall send a copy of agreed proposals to— |
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(a) | the registered provider and its officers, |
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(b) | its secured creditors, |
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(c) | any liquidator, administrator, administrative receiver or receiver |
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appointed in respect of the registered provider or any of its land, |
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(d) | if the registered provider is an industrial and provident society, the |
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Financial Services Authority, and |
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(e) | if the registered provider is a registered charity, the Charity |
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(7) | The regulator shall also make arrangements for bringing agreed proposals to |
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(a) | the registered provider’s members, |
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(c) | its unsecured creditors. |
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(8) | Proposals may be amended by agreement between the secured creditors and |
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the regulator; and this section and section 146 apply to an amendment as to the |
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(1) | The following are obliged to implement agreed proposals— |
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(b) | the registered provider, |
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(d) | any liquidator, administrator, administrative receiver or receiver |
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appointed in respect of the registered provider or any of its land. |
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(2) | The following shall co-operate with implementation of agreed proposals— |
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(a) | in the case of a charitable trust, its trustees, |
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(b) | in the case of an industrial and provident society, its committee |
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(c) | in the case of a registered company, its directors. |
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(3) | Subsection (2) does not require or permit a breach of a fiduciary or other duty. |
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(1) | This section applies where agreed proposals provide for the appointment of a |
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(2) | The proposals must provide for the manager to be paid reasonable |
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remuneration and expenses. |
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(3) | The regulator shall appoint a manager. |
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(4) | The regulator may give the manager directions (general or specific). |
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(5) | The manager may apply to the High Court for directions (and directions of the |
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regulator are subject to directions of the High Court). |
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(6) | If the registered provider is a charity, the regulator must notify the Charity |
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Commission that a manager has been appointed. |
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(7) | The regulator may appoint a new manager in place of a person who ceases to |
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be manager (in accordance with terms of appointment specified in the |
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proposals or determined by the regulator). |
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(a) | may do anything necessary for the purpose of the appointment, |
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(b) | acts as the registered provider’s agent (and is not personally liable on a |
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(c) | has ostensible authority to act for the registered provider (so that a |
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person dealing with the manager in good faith and for value need not |
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inquire into the manager’s powers). |
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(2) | In particular, the terms of a manager’s appointment may confer power— |
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(a) | to sell or otherwise dispose of land by public auction or private |
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(b) | to raise or borrow money; |
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(c) | to grant security over land; |
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(d) | to grant or accept surrender of a lease; |
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(f) | to take possession of property; |
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(g) | to appoint a solicitor, accountant or other professional to assist the |
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(h) | to appoint agents and staff (and to dismiss them); |
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(j) | to bring or defend legal proceedings; |
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(k) | to refer a question to arbitration; |
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(l) | to make any arrangement or compromise; |
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(m) | to carry on the business of the registered provider; |
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(n) | to carry out works and do other things in connection with the |
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management or transfer of land; |
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(o) | to take out insurance; |
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(p) | to use the registered body’s seal; |
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(q) | to execute in the name and on behalf of the registered provider any |
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deed, receipt or other document; |
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(r) | to do anything incidental to a power in paragraphs (a) to (q). |
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(3) | A manager shall so far as is reasonably practicable consult and inform the |
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registered provider’s tenants about an exercise of powers likely to affect them. |
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151 | Manager of industrial and provident society: extra powers |
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(1) | This section applies to a manager appointed to implement proposals relating |
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to an industrial and provident society. |
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(2) | The appointment may confer on the manager power to make and execute on |
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behalf of the society an instrument transferring its engagements. |
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(3) | An instrument transferring engagements has the same effect as a transfer of |
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engagements under section 51 and 52 of the Industrial and Provident Societies |
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Act 1965 (c. 12) (transfer by special resolution to another society or company). |
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(4) | A copy of the instrument— |
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(a) | shall be sent to and registered by the Financial Services Authority, and |
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(b) | takes effect when registered. |
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(5) | The copy must be sent for registration during the period of 14 days beginning |
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with the date of execution; but a copy registered after that period is valid. |
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