Part I Social rented sector

Chapter IV General powers of the Relevant Authority

Insolvency, &c. of registered social landlord

39 Insolvency, &c. of registered social landlord: scheme of provisions.

(1)

The following sections make provision—

(a)

for notice to be given to the F1Relevant Authority of any proposal to take certain steps in relation to a registered social landlord (section 40), and for further notice to be given when any such step is taken (section 41),

(b)

for a moratorium on the disposal of land, and certain other assets, held by the registered social landlord (sections 42 and 43),

(c)

for proposals by the F1Relevant Authority as to the future ownership and management of the land held by the landlord (section 44), which are binding if agreed (section 45),

(d)

for the appointment of a manager to implement agreed proposals (section 46) and as to the powers of such a manager (sections 47 and 48),

(e)

for the giving of assistance by the F1Relevant Authority (section 49), and

(f)

for application to the court to secure compliance with the agreed proposals (section 50).

(2)

In those sections—

“disposal” means sale, lease, mortgage, charge or any other disposition, and includes the grant of an option;

“secured creditor” means a creditor who holds a mortgage or charge (including a floating charge) over land held by the landlord or any existing or future interest of the landlord in rents or other receipts from land; and

“security” means any mortgage, charge or other security.

(3)

The Secretary of State may make provision by order defining for the purposes of those sections what is meant by a step to enforce security over land.

Any such order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.