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Housing Associations Act 1985
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Changes over time for: Section 86
Version Superseded: 01/04/2013
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86 Agreements to indemnify building societies: Scotland.S
(1)[F1Scottish Homes] may, with the approval of the Secretary of State, enter into an agreement with a building society [F2or recognised body] under which [F1Scottish Homes] binds itself to indemnify the building society [F2or recognised body] in respect of—
(a)the whole or part of any outstanding indebtedness of a borrower; and
(b)loss or expense to the building society [F2or recognised body] resulting from the failure of the borrower duly to perform any obligation imposed on him by [F3a] heritable security.
(2)The agreement may also, where the borrower is made party to it, enable or require [F1Scottish Homes] in specified circumstances to take an assignation of the rights and liabilities of the building society [F4or recognised body] under the heritable security.
(3)Approval of the Secretary of State under subsection (1) may be given generally in relation to agreements which satisfy specified requirements, or in relation to individual agreements, and with or without conditions, as he thinks fit, and such approval may be withdrawn at any time on one month’s notice.
(4)Before issuing any general approval under subsection (1) the Secretary of State shall consult with such bodies as appear to him to be representative of islands and district councils, and of building societies, and also with [F1Scottish Homes] and with the [F5Financial Services Authority].
F6(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F7(6)In this section, “recognised body” means a body designated, or of a class or description designated, in an order made under this subsection by statutory instrument by the Secretary of State with the consent of the Treasury.
(7)Before making an order under subsection (6) above varying or revoking an order previously so made, the Secretary of State shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.]
Textual Amendments
F1Words in s. 86(1)(2)(4) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 15(6)
F2Words inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(a)(i)
F3 “a” substituted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(a)(ii)
F4Words inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(b)
F5Words in s. 86(4) substituted (1.12.2001) by S.I. 2001/3649, art. 302
F6S. 86(5) repealed (1.3.2000) by S.I. 2000/311, art. 16
F7S. 86(6)(7) added by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(d)
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