Banking Bill


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New Clause 13

Temporary public ownership: reverse property transfer
‘(1) This section applies where the Treasury have made a property transfer order in accordance with section 41(2) (“the original order”) providing for the transfer of property, rights or liabilities to a company wholly owned by—
(a) the Bank of England,
(b) the Treasury, or
(c) a nominee of the Treasury.
(2) The Treasury may make one or more reverse property transfer orders in respect of property, rights or liabilities of the transferee under the original order.
(3) A reverse property transfer order is a property transfer order which—
(a) provides for transfer to the transferor under the original order;
(b) makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, could be or could have been transferred.
(4) Sections 7, 8 and 9 do not apply to a reverse property transfer order.
(5) A reverse property transfer order is to be treated—
(a) in the same way as a share transfer order for the procedural purposes of section 24, but
(b) as a property transfer instrument for all other purposes (including for the purposes of the application of a power under this Part).
(6) In the application of section 36 by virtue of subsection (5)(b) above, the power to give directions under section 36(7) vests in the Treasury (instead of the Bank of England).
(7) Before making a reverse property transfer order the Treasury must consult—
(a) the FSA, and
(b) the Bank of England.
(8) Section 39 applies where the Treasury have made a reverse property transfer order.’.—[Ian Pearson.]
Brought up, read the First and Second time, and added to the Bill.

New Clause 17

Continuity obligations: consideration and terms
‘(1) The Treasury may by order specify matters which are to be or not to be considered in determining—
(a) what amounts to reasonable consideration for the purpose of sections 57 to 60;
(b) what provisions to include in accordance with section 58(3)(b) or 60(3)(b).
(2) An order—
(a) shall be made by statutory instrument, and
(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(3) A continuity authority may give guarantees or indemnities in respect of consideration for services or facilities provided or to be provided in pursuance of a continuity obligation.
(4) In this section “continuity authority”—
(a) in relation to sections 57 and 58, means the Bank of England, and
(b) in relation to sections 59 and 60, has the same meaning as in those sections.’.—[Ian Pearson.]
Brought up, read the First and Second time, and added to the Bill.

New Clause 18

Continuity obligations: termination
‘(1) The continuity authority may by notice terminate an obligation arising under section 57 or 59.
(2) The power under subsection (1) is exerciseable by giving a notice to each person—
(a) on whom the obligation is imposed, or
(b) who has benefited or might have expected to benefit from the obligation.
(3) In this section “continuity authority”—
(a) in relation to section 57, means the Bank of England, and
(b) in relation to section 59, has the same meaning as in that section.’.—[Ian Pearson.]
Brought up, read the First and Second time, and added to the Bill.

New Clause 19

Evidence
‘In section 433(1) of the Insolvency Act 1986 (admissibility of statements of affairs) after paragraph (aa) (inserted by section 115 above) insert (before the “and”)—
“(ab) a statement made in pursuance of a requirement imposed by or under Part 3 of that Act (bank administration),”.’.—[Ian Pearson.]
Brought up, read the First and Second time, and added to the Bill.

New Clause 15

Court’s discretion in mortgage possession proceedings brought by a bank
‘In the Housing Act 1980 (c. 51), after section 89 insert—
“89A Court’s discretion in mortgage possession proceedings brought by a bank
(1) This section applies where, in possession proceedings brought by a mortgagee under a mortgage agreement (whether or not regulated by any enactment)—
Brought up, and read the First time.
Ms Sally Keeble (Northampton, North) (Lab): I beg to move, That the clause be read a Second time.
The Chairman: With this it will be convenient to discuss new clause 16—Mortgage possession proceedings brought by a bank—
‘At the beginning of Part 4 of the Administration of Justice Act 1970 insert—
“35A Mortgage possession proceedings
(1) Section 35B applies in the case of any mortgage possession proceedings brought by a bank (within the meaning of section 2 of the Banking Act 2008).
(2) Section 36 applies in the case of any other such proceedings.
Ms Keeble: New clause 15 deals in particular with the rights of tenants in properties that are then repossessed. The new clause ensures that they have some rights in the process, rather than, as sometimes happens, their being left completely unaware of what is happening, pretty much until the bailiff comes to evict them. I am particularly grateful to Shelter, which has repeatedly raised that concern on behalf of people it deals with.
The new clause gives discretion to the courts to delay repossession for up to 90 days, to look at the circumstances of children living in the property, and to consider the nature of the tenancy. It also gives tenants a right to be heard at the hearing—an important right, which they do not have now. The new clause also sets out in more detail the type of notice that tenants should be given and the frequency with which they should be informed of what is happening to their home. That is particularly important now, because one of the sectors affected by the credit crunch is the buy-to-let market. A lot of private sector rented property in this country belongs to landlords who own just a few properties and live on the rental income. That sector is hard hit and its tenants are particularly vulnerable to action that landlords might take.
The new clause is particularly important now for a second reason. Often we think of private sector rented housing being entirely a private sector function, but increasingly that is not the case. Because of the shortage of social housing, a large number of what would normally be social tenants have been diverted into private sector rented property, through the options interview process, while still living on housing benefit. There are real concerns, therefore, about the level of resources available to some tenants in private sector rented properties and about their ability to move around and to find alternative housing.
I come across that problem repeatedly, as I am sure do a good number of other hon. Members. During advice surgeries, I have met people living in private sector rented properties whose landlords have defaulted on their mortgages. As a result, their properties have been repossessed and they have been ordered to leave at extremely short notice. The point of the new clause is not to prevent repossessions where people have defaulted, but to ensure that when it happens, it happens in an orderly fashion. The new clause would also ensure that, if a court orders a delay, it has the power to determine rental levels and to put in place arrangements for tenants to receive notice of what is happening and to put their case in court, for the needs of the household, especially children, to be considered and for the court to have some regard to other housing in the area.
I shall give an example of what can happen in the absence of an orderly wind-down. I was visited recently by a constituent of mine who had a tenancy in which the rent was inclusive of council tax. She was booted out at extremely short notice, but arrangements were not made for the proper winding down of the accounts and payments. One year later, after she had settled in to a new property, she was presented with a bailiffs’ bill for more than £1,000, which was the estimated cost of recovering one month’s council tax of £195. The landlord should have paid it, but had not. No process had been in place for sorting that out, so she was simply dumped with the bill. A process such as the one in the new clause would ensure that instead of just giving consideration to the owner of a property being repossessed, proper regard would also be given to those living in it. Proper arrangements should be in place to protect them from some of the worst excesses of the current system.
 
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Prepared 19 November 2008