The Charities Act 2006 (Changes in Exempt Charities) Order 2009

Need for an order under section 38 of the 1993 Act in relation to a new exempt charity

9.—(1) Section 38 of the 1993 Act continues to apply to a relevant mortgage of land held by or in trust for a new exempt charity as it applies to a mortgage of land held by or in trust for a charity which is not an exempt charity.

(2) A mortgage of land held by or in trust for a new exempt charity is a “relevant mortgage” if the charity trustees—

(a) proposed that the mortgage be executed before the appointed day; but

(b) had not executed it before that day.

(3) For the purposes of sub-paragraph (2) it does not matter whether the mortgage—

(a) will only have effect to secure the repayment of sums paid by way of the proposed loan or grant or discharge of the proposed obligation; or

(b) will also have effect to secure the repayment of sums paid by way of loan or grant, or the discharge of other obligations undertaken, after the date of its execution.

(4) In this paragraph “mortgage” has the meaning given by section 38 of the 1993 Act.