House of Lords portcullis
House of Lords
Session 2010 - 11
Internet Publications
Other Bills before Parliament

Parliamentary Voting System and Constituencies Bill


Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

289

 
 

Time ........................................ (am/pm)

 
 


 
 

NOTES: (1) If the person making the above declaration knowingly and wilfully

 
 

makes therein a statement false in a material particular, he or she will be guilty of

 
 

an offence.

 

5

 

(2) A voter with disabilities is a voter who has made a declaration that he or she is

 
 

so incapacitated by blindness or other disability, or by an inability to read, as to be

 
 

unable to vote without assistance.

 
 

Schedule 9

Section 6

 

Control of loans etc to permitted participants

10

           

The Schedule referred to in section 6(1) is as follows—

“SCHEDULE 15A

Control of loans etc to permitted participants

Part 1

Introductory

15

Operation of Schedule

1     (1)  

This Schedule has effect in relation to the referendum under

section 1 of the Parliamentary Voting System and Constituencies

Act 2011 for controlling regulated transactions entered into by

permitted participants that either are not registered parties or are

20

minor parties.

      (2)  

The following provisions have effect for the purposes of this

Schedule.

      (3)  

In accordance with sub-paragraph (1), “permitted participant”

does not include a permitted participant which is a registered

25

party other than a minor party.

      (4)  

“Regulated transaction” has the meaning given by paragraph 2.

      (5)  

In relation to transactions entered into by a permitted participant

other than a designated organisation, the reference in paragraph

4(2) to a permissible donor falling within section 54(2) does not

30

include a registered party.

           

In this sub-paragraph “designated organisation” has the meaning

given by section 110(5).

Regulated transactions

2     (1)  

An agreement between a permitted participant and another

35

person by which the other person makes a loan of money to the

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

290

 

permitted participant is a regulated transaction if the use

condition is satisfied.

      (2)  

An agreement between a permitted participant and another

person by which the other person provides a credit facility to the

permitted participant is a regulated transaction if the use

5

condition is satisfied.

      (3)  

Where—

(a)   

a permitted participant and another person (A) enter into

a regulated transaction of a description mentioned in sub-

paragraph (1) or (2), or a transaction under which any

10

property, services or facilities are provided for the use or

benefit of the permitted participant (including the services

of any person),

(b)   

A also enters into an arrangement whereby another person

(B) gives any form of security (whether real or personal)

15

for a sum owed to A by the permitted participant under the

transaction mentioned in paragraph (a), and

(c)   

the use condition is satisfied,

           

the arrangement is a regulated transaction.

      (4)  

An agreement or arrangement is also a regulated transaction if—

20

(a)   

the terms of the agreement or arrangement as first entered

into do not constitute a regulated transaction by virtue of

sub-paragraph (1), (2) or (3), but

(b)   

the terms are subsequently varied in such a way that the

agreement or arrangement becomes a regulated

25

transaction.

      (5)  

The use condition is that the permitted participant intends at the

time of entering into a transaction mentioned in sub-paragraph

(1), (2) or (3)(a) to use any money or benefit obtained in

consequence of the transaction for meeting referendum expenses

30

incurred by or on behalf of the permitted participant.

      (6)  

For the purposes of sub-paragraph (5), it is immaterial that only

part of the money or benefit is intended to be used for meeting

referendum expenses incurred by or on behalf of the permitted

participant.

35

      (7)  

References in sub-paragraphs (1) and (2) to a permitted participant

include references to an officer, member, trustee or agent of the

permitted participant if that person makes the agreement as such.

      (8)  

References in sub-paragraph (3) to a permitted participant include

references to an officer, member, trustee or agent of the permitted

40

participant if the property, services or facilities are provided to

that person as such, or the sum is owed by that person as such.

      (9)  

A reference to a connected transaction is a reference to the

transaction mentioned in sub-paragraph (3)(b).

     (10)  

In this paragraph a reference to anything being done by or in

45

relation to a permitted participant or a person includes a reference

to its being done directly or indirectly through a third person.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

291

 

     (11)  

A credit facility is an agreement whereby a permitted participant

is enabled to receive from time to time from another party to the

agreement a loan of money not exceeding such amount (taking

account of any repayments made by the permitted participant) as

is specified in or determined in accordance with the agreement.

5

     (12)  

An agreement or arrangement is not a regulated transaction—

(a)   

to the extent that a payment made in pursuance of the

agreement or arrangement falls, by virtue of paragraph 9

of Schedule 15, to be included in a return under section

120, or

10

(b)   

if its value is not more than £500.

Valuation of regulated transaction

3     (1)  

The value of a regulated transaction which is a loan is the value of

the total amount to be lent under the loan agreement.

      (2)  

The value of a regulated transaction which is a credit facility is the

15

maximum amount which may be borrowed under the agreement

for the facility.

      (3)  

The value of a regulated transaction which is an arrangement by

which any form of security is given is the contingent liability

under the security provided.

20

      (4)  

For the purposes of sub-paragraphs (1) and (2), no account is to be

taken of the effect of any provision contained in a loan agreement

or an agreement for a credit facility at the time it is entered into

which enables outstanding interest to be added to any sum for the

time being owed in respect of the loan or credit facility, whether or

25

not any such interest has been so added.

Part 2

Controls on regulated transactions

Authorised participants

4     (1)  

A permitted participant must not—

30

(a)   

be a party to a regulated transaction to which any of the

other parties is not an authorised participant;

(b)   

derive a benefit in consequence of a connected transaction

if any of the parties to that transaction is not an authorised

participant.

35

      (2)  

In this Schedule, an authorised participant is a person who is a

permissible donor falling within section 54(2).

Regulated transaction involving unauthorised participant

5     (1)  

This paragraph applies if a permitted participant is a party to a

regulated transaction to which another party is not an authorised

40

participant.

      (2)  

The transaction is void.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

292

 

      (3)  

Despite sub-paragraph (2)—

(a)   

any money received by the permitted participant by virtue

of the transaction must be repaid by the responsible person

to the person from whom it was received, along with

interest at the rate referred to in section 71I(3)(a);

5

(b)   

the person from whom it was received is entitled to

recover the money, along with such interest.

      (4)  

If—

(a)   

the money is not (for whatever reason) repaid as

mentioned in sub-paragraph (3)(a), or

10

(b)   

the person entitled to recover the money refuses or fails to

do so,

           

the Commission may apply to the court to make such order as it

thinks fit to restore (so far as is possible) the parties to the

transaction to the position they would have been in if the

15

transaction had not been entered into.

      (5)  

An order under sub-paragraph (4) may in particular—

(a)   

where the transaction is a loan or credit facility, require

that any amount owed by the permitted participant be

repaid (and that no further sums be advanced under it);

20

(b)   

where any form of security is given for a sum owed under

the transaction, require that security to be discharged.

      (6)  

In the case of a regulated transaction where a party other than a

permitted participant—

(a)   

at the time the permitted participant enters into the

25

transaction, is an authorised participant, but

(b)   

subsequently, for whatever reason, ceases to be an

authorised participant,

           

the transaction is void and sub-paragraphs (3) to (5) apply with

effect from the time when the other party ceased to be an

30

authorised participant.

Guarantees and securities: unauthorised participant

6     (1)  

This paragraph applies if—

(a)   

a permitted participant and another person (A) enter into

a transaction of a description mentioned in

35

paragraph 2(3)(a),

(b)   

A is party to a regulated transaction of a description

mentioned in paragraph 2(3)(b) (“the connected

transaction”) with another person (B), and

(c)   

B is not an authorised participant.

40

      (2)  

Paragraph 5(2) to (5) applies to the transaction mentioned in sub-

paragraph (1)(a).

      (3)  

The connected transaction is void.

      (4)  

Sub-paragraph (5) applies if (but only if) A is unable to recover

from the permitted participant the whole of the money mentioned

45

in paragraph 5(3)(a) (as applied by sub-paragraph (2) above),

along with such interest as is there mentioned.

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

293

 

      (5)  

Despite sub-paragraph (3), A is entitled to recover from B any part

of that money (and such interest) that is not recovered from the

permitted participant.

      (6)  

Sub-paragraph (5) does not entitle A to recover more than the

contingent liability under the security provided by virtue of the

5

connected transaction.

      (7)  

In the case of a connected transaction where B—

(a)   

at the time A enters into the transaction, is an authorised

participant, but

(b)   

subsequently, for whatever reason, ceases to be an

10

authorised participant,

           

sub-paragraphs (2) to (6) apply with effect from the time when B

ceased to be an authorised participant.

      (8)  

If the transaction mentioned in paragraph 2(3)(a) is not a regulated

transaction of a description mentioned in paragraph 2(1) or (2),

15

references in this paragraph and paragraph 5(2) to (5) (as applied

by sub-paragraph (2) above) to the repayment or recovery of

money are to be construed as references to (as the case may be)—

(a)   

the return or recovery of any property provided under the

transaction,

20

(b)   

to the extent that such property is incapable of being

returned or recovered or its market value has diminished

since the time the transaction was entered into, the

repayment or recovery of the market value at that time, or

(c)   

the market value (at that time) of any facilities or services

25

provided under the transaction.

Transfer to unauthorised participant invalid

7          

If an authorised participant purports to transfer the participant’s

interest in a regulated transaction to a person who is not an

authorised participant the purported transfer is of no effect.

30

Offences

8     (1)  

An individual who is a permitted participant commits an offence

if—

(a)   

the individual enters into a regulated transaction of a

description mentioned in paragraph 2(1) or (2) to which

35

another party is not an authorised participant, and

(b)   

the individual knew or ought reasonably to have known of

the matters mentioned in paragraph (a).

      (2)  

A permitted participant that is not an individual commits an

offence if—

40

(a)   

it enters into a regulated transaction of a description

mentioned in paragraph 2(1) or (2) to which another party

is not an authorised participant, and

(b)   

an officer of the permitted participant knew or ought

reasonably to have known of the matters mentioned in

45

paragraph (a).

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

294

 

      (3)  

A person who is the responsible person in relation to a permitted

participant that is not an individual commits an offence if—

(a)   

the permitted participant enters into a regulated

transaction of a description mentioned in paragraph 2(1)

or (2) to which another party is not an authorised

5

participant, and

(b)   

the person knew or ought reasonably to have known of the

matters mentioned in paragraph (a).

      (4)  

An individual who is a permitted participant commits an offence

if—

10

(a)   

the individual enters into a regulated transaction of a

description mentioned in paragraph 2(1) or (2) to which

another party is not an authorised participant,

(b)   

the individual neither knew nor ought reasonably to have

known that the other party is not an authorised

15

participant, and

(c)   

as soon as practicable after knowledge of the matters

mentioned in paragraph (a) comes to the individual he

fails to take all reasonable steps to repay any money which

the individual has received by virtue of the transaction.

20

      (5)  

A permitted participant that is not an individual commits an

offence if—

(a)   

it enters into a regulated transaction of a description

mentioned in paragraph 2(1) or (2) to which another party

is not an authorised participant,

25

(b)   

no officer of the permitted participant knew or ought

reasonably to have known that the other party is not an

authorised participant, and

(c)   

as soon as practicable after knowledge of the matters

mentioned in paragraph (a) comes to the responsible

30

person he fails to take all reasonable steps to repay any

money which the permitted participant has received by

virtue of the transaction.

      (6)  

A person who is the responsible person in relation to a permitted

participant that is not an individual commits an offence if—

35

(a)   

the permitted participant enters into a regulated

transaction of a description mentioned in paragraph 2(1)

or (2) to which another party is not an authorised

participant,

(b)   

sub-paragraph (3)(b) does not apply to the person, and

40

(c)   

as soon as practicable after knowledge of the matters

mentioned in paragraph (a) comes to the person he fails to

take all reasonable steps to repay any money which the

permitted participant has received by virtue of the

transaction.

45

      (7)  

An individual who is a permitted participant commits an offence

if—

(a)   

the individual benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant, and

50

 
 

Parliamentary Voting System and Constituencies Bill
Schedule 9 — Control of loans etc to permitted participants

295

 

(b)   

the individual knew or ought reasonably to have known of

the matters mentioned in paragraph (a).

      (8)  

A permitted participant that is not an individual commits an

offence if—

(a)   

it benefits from or falls to benefit in consequence of a

5

connected transaction to which any of the parties is not an

authorised participant, and

(b)   

an officer of the permitted participant knew or ought

reasonably to have known of the matters mentioned in

paragraph (a).

10

      (9)  

A person who is the responsible person in relation to a permitted

participant that is not an individual commits an offence if—

(a)   

the permitted participant benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant, and

15

(b)   

the person knew or ought reasonably to have known of the

matters mentioned in paragraph (a).

     (10)  

An individual who is a permitted participant commits an offence

if—

(a)   

the individual is a party to a transaction of a description

20

mentioned in paragraph 2(3)(a),

(b)   

the individual benefits from or falls to benefit in

consequence of a connected transaction to which any of the

parties is not an authorised participant,

(c)   

the individual neither knew nor ought reasonably to have

25

known of the matters mentioned in paragraphs (a) and (b),

and

(d)   

as soon as practicable after knowledge of the matters

mentioned in paragraphs (a) and (b) comes to the

individual he fails to take all reasonable steps to pay to any

30

person who has provided the individual with any benefit

in consequence of the connected transaction the value of

the benefit.

     (11)  

A permitted participant that is not an individual commits an

offence if—

35

(a)   

it is a party to a transaction of a description mentioned in

paragraph 2(3)(a),

(b)   

it benefits from or falls to benefit in consequence of a

connected transaction to which any of the parties is not an

authorised participant,

40

(c)   

no officer of the permitted participant knew or ought

reasonably to have known of the matters mentioned in

paragraphs (a) and (b), and

(d)   

as soon as practicable after knowledge of the matters

mentioned in paragraphs (a) and (b) comes to the

45

responsible person he fails to take all reasonable steps to

pay to any person who has provided the permitted

participant with any benefit in consequence of the

connected transaction the value of the benefit.

 
 

 
previous section contents continue
 

© Parliamentary copyright
Revised 10 February 2011