Housing Act 1974

23 Transfer of net assets on dissolution of registered 1965 Act associations

(1) If a registered 1965 Act association is dissolved as mentioned in paragraph (a) or paragraph (b) of section 55 of the 1965 Act then, notwithstanding anything in that Act or in the rules of the association, there shall be transferred to the Corporation, or, if the Corporation so directs, to such registered housing association as may be specified in the direction, so much of the property of the association as remains after meeting the claims of its creditors and any other liabilities arising on or before the dissolution.

(2) If it appears to the Corporation to be appropriate to do so in order to avoid the necessity for the sale of any land belonging to a registered 1965 Act association which is being dissolved as mentioned in subsection (1) above and thereby secure the transfer of the land under that subsection, the Corporation may make payments to discharge any such claims or liabilities as are referred to in that subsection.

(3) The Corporation may not dispose of any property transferred to them by virtue of subsection (1) above otherwise than to a registered housing association or a subsidiary of the Corporation, and in any case where the property so transferred to the Corporation includes land subject to an existing mortgage or charge, whether in favour of the Corporation or otherwise, the Corporation may, in exercise of their powers under Part I of this Act, dispose of the land subject to that mortgage or charge or subject to a new mortgage or charge in favour of the Corporation, and the amount secured by any such new mortgage or charge shall be such as appears to the Corporation to be appropriate in the circumstances.

(4) Notwithstanding anything in subsection (3) above, where property is transferred to the Corporation by virtue of subsection (1) above on the dissolution of a registered 1965 Act association which is a charity, the Corporation may not dispose of that property except to another registered housing association which is a charity and the objects of which appear to the Corporation to be, as nearly as practicable, akin to those of the association which was dissolved.