4.—(1) The 1985 Act is amended in accordance with sub-paragraphs (2) to (4) below.
(2) In section 436 (terms of advance), in subsection (4), for “section 435(1)(b) to (d)” substitute “section 435(1)(b) and (c) and (1A)”.
(3) In section 439 (requirements as to fitness of premises, &c.)—
(a)in subsection (2), for “subsection (1)(b) to (d)” substitute “subsections (1)(b) and (c) and (1A)”; and
(b)in subsection (3)—
(i)for “section 435(1)” substitute “subsection (1) of section 435”,
(ii)after “(repayment of previous loan)” insert “or in subsection (1A)(b) of that section (repayment of previous loan for improvements etc)”, and
(iii)in paragraph (b), for the words from “paragraph” to the end substitute—
“(i)subsection (1)(c) of that section (conversion), or
(ii)subsection (1A)(a) of that section (improvements, etc),
as the case may be.”.
(4) In section 442 (agreement by local authority to indemnify mortgagee), in subsection (1A)(1), after “subsection (1)”, insert “or (1A)”.
Subsection (1A) was inserted by the Housing Act 1996 (c. 52), Schedule 18, paragraph 27.