Part VE+W FINANCIAL PROVISIONS

CHAPTER IIE+W FINANCIAL ASSISTANCE FOR UNDERTAKERS

153 Government financial assistance where special administration orders made.E+W

(1)Where a special administration order is for the time being in force in relation to a company, the Secretary of State, may, with the consent of the Treasury—

(a)make to the company grants or loans of such sums as appear to him to be appropriate for the purpose of facilitating the achievement of the purposes of the order;

[F1(b)offer indemnities in respect of liabilities or loss incurred or sustained in the course of functions under the order.]

[F2(1A)An indemnity under subsection (1)(b) may be offered to—

(a)the special administrator,

(b)an employee of the special administrator,

(c)a member or employee of a firm of which the special administrator is or was a member or employee (or a successor of that firm),

(d)a body corporate of which the special administrator is or was an employee, or

(e)an officer, employee or member of a body corporate within paragraph (d).]

(2)The Secretary of State may, with the consent of the Treasury, guarantee, in such manner and on such conditions as he may think fit, the repayment of the principal of, the payment of interest on and the discharge of any other financial obligation in connection with any sum which is borrowed from any person by a company in relation to which a special administration order is in force at the time when the guarantee is given.

(3)Without prejudice to any provision applied in relation to the company [F3by or under section 23] —

(a)the terms and conditions on which a grant is made to any company under this section may require the whole or a part of the grant to be repaid to the Secretary of State if there is a contravention of the other terms and conditions on which the grant is made; and

(b)any loans which the Secretary of State makes to a company under this section shall be repaid to him at such times and by such methods, and interest on the loans shall be paid to him at such rates and at such times, as he may, with the consent of the Treasury, from time to time direct.

[F4(3A)Arrangements for a grant, loan or indemnity which are made while a special administration order is in force may continue to have effect after the order ceases to have effect.]

(4)Any grant or loan made under this section and any sums required to be paid by the Secretary of State in respect of an indemnity given under this section shall be paid out of money provided by Parliament.

(5)Any sums received under subsection (3) above by the Secretary of State shall be paid into the Consolidated Fund.

Textual Amendments