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Make
provision regarding the rights of secured debtors; to reform the
rights of |
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certain creditors to enforce
their security; to make other provision regarding |
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secured lending; and for connected
purposes. |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
Powers
and duties of a receiver |
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(1) |
The Law of Property Act 1925
is amended as follows. |
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(2) |
After section 109 insert— |
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“109A |
Limit on the powers of a receiver |
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(1) |
A receiver appointed under
this Act is not entitled— |
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(a) |
to bring proceedings for
possession of any property, |
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(b) |
to exercise a right of peaceable
re-entry, or |
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(c) |
to conduct the sale of a
property or receive the proceeds of sale, |
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except
where an order for possession of the property has been |
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(2) |
Any provision in an agreement
or instrument is void to the extent that |
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it
purports to give a power to a receiver that is inconsistent with
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(3) |
This section applies to
an agreement or instrument created on or after a |
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date
appointed by the Secretary of State by order. |
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109B |
Duties
of a receiver |
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(1) |
The statutory and common
law duties of a receiver appointed under |
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this
Act shall be owed to each of the following— |
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(c) |
any other person for the
time being interested in the equity of |
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(2) |
The
Secretary of State may by regulations made by statutory |
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instrument
make provision— |
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(a) |
to define the scope and
nature of the duties owed by a receiver |
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appointed
under this Act, |
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(b) |
to specify any additional
categories of person to whom those |
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(3) |
Regulations under subsection
(2) may not be made unless a draft of the |
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instrument
has been laid before, and approved by a resolution of, each |
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(3) |
At the beginning of section
101(3) insert “Subject to section 109A,”. |
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2 |
Abolition
of peaceable re-entry by mortgagee |
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(1) |
The Secretary of State must
by regulations make provision to abolish the right |
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of a mortgagee to obtain
peaceable re-entry of a property. |
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(2) |
Regulations under subsection
(1) must prescribe the maximum penalties that |
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may be imposed on a mortgagee
who peaceably re-enters a property. |
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3 |
Determination
of possession proceedings: counterclaims, set-off etc |
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(1) |
The Secretary of State must
by regulations ensure that a possession order is not |
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made by the court on the
application of a mortgagee unless— |
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(a) |
the court is satisfied that
the mortgagor has received an adequate |
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opportunity to raise any counter-claim,
set-off or other defence that |
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may be available against the
mortgagee, and |
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(b) |
the court has determined
the merits of any such counter-claim, set-off |
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(2) |
Nothing in subsection (1)
shall prevent the court from making a possession |
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order in any case where the
mortgagor has unreasonably delayed pursuing |
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any such counter-claim, set-off
or other defence. |
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4 |
Extending
the court’s powers: stays, suspension, postponement |
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(1) |
The Administration of Justice
Act 1970 is amended as follows. |
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(2) |
In section 36 (action by
mortgagee for possession etc) omit the words “of |
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dwelling house” and
“which consists of or includes a dwelling-house”.
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5 |
Extending
the court’s powers: varying payment schedules, interest
rates, etc |
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(1) |
The Secretary of State must
by regulations make provision to ensure that the |
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court has power on the application
of a mortgagor or mortgagee to vary any of |
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the following terms of the
mortgage deed or instrument where it appears just |
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(a) |
the rate of interest, |
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(b) |
the schedule of payments,
or |
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(c) |
the value of payments. |
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(2) |
Regulations under this section
must ensure that an application can be made by |
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the mortgagor or mortgagee
to discharge or vary an order made pursuant to |
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subsection (1) where there
has been a change in circumstances. |
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Section 31 of the Agricultural
Tenancies Act 1995 is omitted. |
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(1) |
A power to make an order
or regulations under this Act is exercisable by |
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5 |
(2) |
A statutory instrument containing
an order or regulations under sections 2, 3 |
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or 5 of this Act may not
be made unless a draft of the instrument has been laid |
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before, and approved by a
resolution of, each House of Parliament. |
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8 |
Short
title, commencement and extent |
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(1) |
This Act may be cited as
the Secured Lending Reform Act 2011. |
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(2) |
This Act comes into force
on such day as the Secretary of State may by order |
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made by statutory instrument
appoint. |
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(3) |
This Act extends to England
and Wales. |
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