27(1)Section 442 of the Housing Act 1985 (agreements by local authority to indemnify mortgagees) is amended as follows.E+W
(2)In subsection (1)—
(a)for the words from the beginning to “house” (in the second place it appears) substitute “ A local authority may enter into an agreement with a person or body making an advance on the security of a house (or a building to be converted into a house) ”;
(b)for “society or body” (in both places) substitute “ mortgagee ”.
(3)After subsection (1) insert—
“(1A)The local authority may only enter into the agreement if the advance is for one or more of the purposes specified in subsection (1) of section 435; and subsections (2) to (4) of that section apply in relation to power to enter into such an agreement as they apply to the power to make an advance under that section.”.
(4)In subsection (2) for “building society or recognised body” substitute “ mortgagee ”;
(5)Subsections (4) and (5) shall cease to have effect.