The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012

PART 6 Permitted early repayment of credit and cash advances and terms which bind and benefit bill payers

Permitted early repayment of credit

38.—(1) This regulation provides for a green deal plan to include a term requiring the early repayment of the outstanding amount (“early repayment”) where the plan—

(a) will not be a regulated consumer credit agreement; and

(b) the parties who are to enter into the plan do not intend that it will be treated as if it were a regulated consumer credit agreement.

(2) A green deal plan which provides for early repayment when a trigger event occurs is not contrary to section 5(3)(b) if, when that event occurs, the conditions in paragraphs (3) and (4) are met.

(3) The first condition is that the person (“A”) who is required to make an early repayment when the trigger event occurs is—

(a) the person who sold or let the property to another person (“B”) where—

(i) B became the bill payer immediately after the sale or letting;

(ii) the trigger event occurred because B became the bill payer; and

(iii) A was not the bill payer immediately before the trigger event occurred,

and A is either the improver or has been a bill payer under the plan; or

(b) where paragraph (a) does not apply, the person who was the bill payer immediately before the trigger event.

(4) The second condition is that the green deal provider must be satisfied that—

(a) if it were to enter into a new agreement to provide the remaining credit to the person who is the bill payer immediately after the trigger event occurs; and

(b) if that agreement was on substantially the same terms as the terms of the plan,

the new agreement would be a regulated consumer credit agreement.

(5) In this regulation—

(a) “outstanding amount” means the sum of the green deal instalments which are payable in the period commencing when a trigger event occurs and ending at the end of the payment period; and

(b) “remaining credit” means the outstanding amount less interest and charges.

Permitted cash advances

39.  A term of a green deal plan which provides for money to be advanced by the green deal provider to the improver is not contrary to section 5(3)(c) if the total amount advanced is no more than the lower of—

(a) £150; or

(b) 5 per cent of the estimated total of the green deal instalments.

Terms of the plan which are to bind or benefit the bill payer or a subsequent bill payer

40.—(1) The terms of a green deal plan which bind a bill payer are—

(a) a term which provides for the amounts of the green deal instalments and the intervals at which, and period for which, they are payable;

(b) an early repayment term; and

(c) subject to paragraph (2), any other term which the plan expressly states is to bind the bill payer.

(2) A term in which the improver confirms to any person—

(a) that any necessary permissions or consents have been obtained in respect of the improvements; or

(b) any other matter relating to the improvements or the installation of the improvements,

does not bind the bill payer or subsequent bill payer.

(3) A term of a green deal plan which binds a person (“P”) as a bill payer (except an early repayment term)—

(a) binds P only in respect of anything which is to be done or not to be done during the period for which P is the bill payer; and

(b) may be enforced by the green deal provider against P but only to the extent that P is bound under sub-paragraph (a).

(4) An early repayment term—

(a) binds a person (“P”) as a bill payer from the time P becomes the bill payer until the end of the payment period; and

(b) may be enforced by the green deal provider against P but only to the extent that P is bound under sub-paragraph (a).

(5) A term of a green deal plan which confers a benefit on the improver (except a term under which money is to be advanced to the improver) also confers a benefit on a bill payer.

(6) Where a term of a green deal plan confers a benefit on a bill payer,—

(a) a person (“P”) who is the bill payer has the benefit of that term; and

(b) P may enforce that term against the green deal provider,

but only whilst P is the bill payer.

(7) In this regulation—

(a) “early repayment term” means a term in a plan which complies with regulation 38;

(b) a reference to a green deal provider includes—

(i) in relation to a term which binds a person as a bill payer, a reference to a person to whom the green deal provider’s right to enforce that term has been assigned;

(ii) in relation to a term which confers a benefit on a person as a bill payer, a reference to a person who, further to a novation of a green deal plan, has assumed the green deal provider’s obligation in respect of that term.