F1SCHEDULE 7AControl of loans etc to individuals and members associations
Offences
8
(1)
An individual who is a regulated participant commits an offence if—
(a)
he enters into a controlled transaction of a description mentioned in paragraph 2(1) or (2) in which another participant is not an authorised participant, and
(b)
he knew or ought reasonably to have known that the other participant was not an authorised participant.
(2)
A responsible person of a members association commits an offence if—
(a)
the association enters into a controlled transaction of a description mentioned in paragraph 2(1) or (2) in which another participant is not an authorised participant, and
(b)
he knew or ought reasonably to have known of the matters mentioned in paragraph (a).
(3)
An individual who is a regulated participant commits an offence if—
(a)
he enters into a controlled transaction of a description mentioned in paragraph 2(1) or (2) in which another participant is not an authorised participant,
(b)
sub-paragraph (1)(b) does not apply to him, and
(c)
as soon as practicable after knowledge that the other participant is not an authorised participant comes to him he fails to take all reasonable steps to repay any money which he has received by virtue of the transaction.
(4)
A responsible person of a members association commits an offence if—
(a)
the association enters into a controlled transaction of a description mentioned in paragraph 2(1) or (2) in which another participant is not an authorised participant,
(b)
sub-paragraph (2)(b) does not apply to him, and
(c)
as soon as practicable after knowledge of the matters mentioned in paragraph (a) comes to him he fails to take all reasonable steps to repay any money which the association has received by virtue of the transaction.
(5)
An individual who is a regulated participant commits an offence if—
(a)
he benefits from or falls to benefit in consequence of a connected transaction to which any of the parties is not an authorised participant, and
(b)
he knew or ought reasonably to have known that one of the other parties was not an authorised participant.
(6)
A responsible person of a members association commits an offence if—
(a)
the association benefits from or falls to benefit in consequence of a connected transaction to which any of the parties is not an authorised participant, and
(b)
he knew or ought reasonably to have known of the matters mentioned in paragraph (a).
(7)
An individual who is a regulated participant commits an offence if—
(a)
he is a party to a transaction of a description mentioned in paragraph 2(3)(a),
(b)
he benefits from or falls to benefit in consequence of a connected transaction to which any of the parties is not an authorised participant,
(c)
sub-paragraph (5)(b) does not apply to him, and
(d)
as soon as practicable after knowledge comes to him that one of the parties to the connected transaction is not an authorised participant he fails to take all reasonable steps to repay to any person who has provided him with any benefit in consequence of the connected transaction the value of the benefit.
(8)
A responsible person of a members association commits an offence if—
(a)
the association is a party to a transaction of a description mentioned in paragraph 2(3)(a),
(b)
the association benefits from or falls to benefit in consequence of a connected transaction to which any of the parties is not an authorised participant,
(c)
sub-paragraph (6)(b) does not apply to him, and
(d)
as soon as practicable after knowledge comes to him that one of the parties to the connected transaction is not an authorised participant he fails to take all reasonable steps to repay to any person who has provided the association with any benefit in consequence of the connected transaction the value of the benefit.
(9)
A person commits an offence if he—
(a)
knowingly enters into, or
(b)
knowingly does any act in furtherance of,
any arrangement which facilitates or is likely to facilitate, whether by means of concealment or disguise or otherwise, the participation by a regulated participant in a controlled transaction with a person other than an authorised participant.
(10)
It is a defence for a person charged with an offence under sub-paragraph (2) to prove that he took all reasonable steps to prevent the members association entering into the transaction.
(11)
It is a defence for a person charged with an offence under sub-paragraph (6) to prove that he took all reasonable steps to prevent the members association benefiting in consequence of the connected transaction.
(12)
A reference to a regulated participant entering into a controlled transaction includes a reference to any circumstances in which the terms of a controlled transaction are varied so as to increase the amount of money to which the regulated participant is entitled in consequence of the transaction.
(13)
A reference to a regulated participant entering into a transaction in which another participant is not an authorised participant includes a reference to any circumstances in which another party to the transaction who is an authorised participant ceases (for whatever reason) to be an authorised participant.
(14)
This paragraph does not apply to a transaction which is entered into before the commencement of section 61 of the Electoral Administration Act 2006.