Building Safety Act 2022

Payments received by special measures manager to be held on trust

6 (1) This paragraph applies where a special measures order relating to a higher-risk building requires one or more accountable persons for the building to make payments to the special measures manager for the building.

(2) The manager must hold the payments (together with any income accruing on those payments) as either—

(a) a single trust fund, or

(b) in two or more separate trust funds.

(3) The manager must hold any trust fund—

(a) on trust to defray relevant expenses, and

(b) subject to that, on trust for the accountable person or persons for the building for the time being.

(4) The accountable person or persons for the building for the time being are to be treated as entitled by virtue of sub-paragraph (3)(b) to—

(a) if there is one accountable person for the building, the residue of the fund or funds;

(b) otherwise, to such shares in that residue as the accountable persons may agree in writing or (in default of agreement) as the tribunal may direct.

(5) An application for a direction under sub-paragraph (4)(b) may be made by—

(a) the regulator,

(b) an accountable person for the building, or

(c) the manager.