Part ISocial rented sector

Chapter IVGeneral powers of the Corporation

Insolvency, &c. of registered social landlord

39Insolvency, &c. of registered social landlord: scheme of provisions

1

The following sections make provision—

a

for notice to be given to the Corporation of any proposal to take certain steps in relation to a registered social landlord (section 40), and for further notice to be given when any such step is taken (section 41),

b

for a moratorium on the disposal of land, and certain other assets, held by the registered social landlord (sections 42 and 43),

c

for proposals by the Corporation as to the future ownership and management of the land held by the landlord (section 44), which are binding if agreed (section 45),

d

for the appointment of a manager to implement agreed proposals (section 46) and as to the powers of such a manager (sections 47 and 48),

e

for the giving of assistance by the Corporation (section 49), and

f

for application to the court to secure compliance with the agreed proposals (section 50).

2

In those sections—

  • “disposal” means sale, lease, mortgage, charge or any other disposition, and includes the grant of an option;

  • “secured creditor” means a creditor who holds a mortgage or charge (including a floating charge) over land held by the landlord or any existing or future interest of the landlord in rents or other receipts from land; and

  • “security” means any mortgage, charge or other security.

3

The Secretary of State may make provision by order defining for the purposes of those sections what is meant by a step to enforce security over land.

Any such order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.