The Local Government Changes For England (Property Transfer and Transitional Payments) Regulations 1995

Vesting of residual rights and liabilities of abolished authorities

7.—(1) This paragraph applies to any rights or liabilities arising in relation to any contract for the provision of services, or the delivery of goods, by or to the abolished authority which are not vested by virtue of paragraph (4) or (10) of regulation 6.

(2) Any rights or liabilities to which paragraph (1) above applies shall, on the reorganisation date, vest —

(a) where the contract relates exclusively to land which is vested in a successor authority by virtue of paragraph (4) of regulation 6, in that authority;

(b) where the contract relates to land which is vested by virtue of that paragraph in a successor authority and to land which is so vested in another successor authority, in those authorities jointly and severally;

(c) where the contract relates to land which is vested in a successor authority by virtue of that paragraph and to land which is vested in the Residuary Body by virtue of paragraph (10) of that regulation, in that authority and the Residuary Body jointly and severally;

(d) where the contract relates exclusively to the area of one successor authority, in that authority; and

(e) where the contract relates to the area of two or more successor authorities, in those authorities jointly and severally.

(3) This paragraph applies to any rights or liabilities arising in relation to any transaction whereby an abolished authority undertook (whether voluntarily or by virtue of a statutory provision) any liability for —

(a) the management, maintenance, repair or improvement of any property situated within its area which is vested in any other person (“the relevant property”); or

(b) a guarantee, indemnity or financial assistance by way of grant or otherwise in respect of any such property.

(4) Any rights or liabilities to which paragraph (3) above applies shall, on the reorganisation date, vest in the successor authority in whose area the relevant property is situated or, where it is situated in the area of more than one successor authority, in those authorities jointly and severally.

(5) Any rights or liabilities of the abolished authority which are not vested by virtue of regulation 6 or any of the preceding paragraphs of this regulation shall, on the reorganisation date, vest in all the successor authorities jointly and severally.