C1Part 2Regulation of Social Housing
Chapter 4Registered providers
Insolvency etc.
I1C2152Proposals
1
During a moratorium the regulator may make proposals about the future ownership and management of the registered provider's land, with a view to ensuring that the property will be properly managed by a registered provider.
2
In making proposals the regulator shall—
a
have regard to the interests of the registered provider's creditors as a whole, and
b
so far as is reasonably practicable avoid worsening the position of unsecured creditors.
3
Proposals may provide for the appointment of a manager in accordance with section 155 to implement all or part of the proposals.
4
Proposals may not include anything which would result in—
a
a preferential debt being paid otherwise than in priority to a non-preferential debt, F3...
F1aa
an ordinary preferential debt being paid otherwise than in priority to a secondary preferential debt,
b
F2c
a preferential creditor (PC1) being paid a smaller proportion of a secondary preferential debt than another preferential creditor (PC2) (unless PC2 consents)F5or
F5d
if the registered provider is a relevant financial institution—
i
an ordinary non-preferential debt being paid otherwise than in priority to a secondary non-preferential debt,
ii
a secondary non-preferential debt being paid otherwise than in priority to a tertiary non-preferential debt, or
iii
a secondary non-preferential creditor (Creditor 1) being paid a smaller proportion of a secondary non-preferential debt than another secondary non-preferential creditor (Creditor 2) (unless Creditor 1 consents).
5
Proposals relating to a registered provider which is a charity (C1)—
a
may not require it to act outside the terms of its trusts, and
b
may provide for the disposal of accommodation only to another charity whose objects the regulator thinks are similar to those of C1.
Pt. 2 modified (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 69(2); S.I. 2012/628, art. 6(i) (with arts. 911141517)