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7.—(1) Regulation 38 of the Claims and Payments Regulations (extinguishment of right to payment of sums by way of benefit etc.) shall be amended in accordance with the following provisions of this regulation.
(2) In paragraph (1) for the words “The right to payment of any sum by way of benefit shall be extinguished” there shall be substituted the words “Subject to paragraph (2A), the right to payment of any sum by way of benefit shall be extinguished”.
(3) After paragraph (2) there shall be inserted the following paragraph–
“(2A) Where a question arises whether the right to payment of any sum by way of benefit has been extinguished by the operation of this regulation and the adjudicating authority is satisfied that–
(a)the Secretary of State has first received written notice requesting payment of that sum after the expiration of 12 months; and
(b)from a day within that period of 12 months and continuing until the day the written notice was given, there was good cause for not giving the notice; and
(c)the instrument of payment, which has been sent or given to the person to whom it is payable, has been produced to the Secretary of State; and
(d)the Secretary of State has certified that no further instrument has been issued as a replacement,
the period of 12 months shall be extended to the date on which the adjudicating authority decides that question, and this regulation shall accordingly apply as though the right to payment had arisen on that date.”.
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