Part I Regulation of Housing Associations
Control of payments to members, etc.
13 Payments by way of gift, dividend or bonus.
(1)
A registered housing association shall not make a gift or pay a sum by way of dividend or bonus to—
(a)
a person who is or has been a member of the association, or
(b)
a person who is a member of the family of a person within paragraph (a), or
(c)
a company of which a person within paragraph (a) or (b) is a director, or
(d)
a Scottish firm of which a person within paragraph (a) or (b) is a member,
except as permitted by this section.
(2)
The following are permitted—
(a)
the payment of a sum which, in accordance with the rules of the association concerned, is paid as interest on capital lent to the association or subscribed by way of shares in the association;
(b)
the payment by a fully mutual housing association to a person who has ceased to be a member of the association, of a sum which is due to him either under his tenancy agreement with the association or under the terms of the agreement under which he became a member of the association.
(3)
Where an association which is a society registered under the 1965 Act pays a sum or makes a gift in contravention of this section the association may recover the sum or the value of the gift, and proceedings for its recovery shall be taken by the association if the F1Corporation so directs.