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17.—(1) Subject to paragraph (3), a responsible authority must terminate the making of direct payments under section 57(1) of the 2001 Act or section 17A(1) of the 1989 Act to a person if—
(a)the person ceases to be a prescribed person; or
(b)a condition mentioned in regulation 7(2) ceases to be met.
(2) A responsible authority may terminate the making of the whole or part of direct payments under section 57(1) of the 2001 Act or section 17A(1) of the 1989 Act to a prescribed person if—
(a)any condition imposed under regulation 11 or referred to in section 57(4)(b) of the 2001 Act is not complied with; or
(b)in all the circumstances the responsible authority consider it appropriate to terminate the making of direct payments.
(3) A responsible authority may continue to make direct payments to a person who ceases to satisfy regulation 2(b) who would otherwise be a prescribed person if—
(a)the authority are reasonably satisfied that that person’s lack of capacity to consent will be temporary;
(b)another person who appears to the responsible authority to be capable of managing a direct payment is prepared to accept and manage such payments on behalf of that person during the period of their incapacity; and
(c)the person with whom the arrangement for the provision of the relevant service has been made agrees to accept payment for the service from the person mentioned in sub-paragraph (b).
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