Housing and Regeneration Act 2008

152 Proposals E+W

(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, F1 ...

[F2 (aa) an ordinary preferential debt being paid otherwise than in priority to a secondary preferential debt,]

(b) a preferential creditor (PC1) being paid a smaller proportion of [F3 an ordinary preferential debt] than another preferential creditor (PC2) (unless PC1 consents) F4 ...

[F5 (c) a preferential creditor (PC1) being paid a smaller proportion of a secondary preferential debt than another preferential creditor (PC2) (unless PC2 consents)] [F6 or]

[F6 (d) 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.

Textual Amendments

F1 Word in s. 152(4)(a) omitted (1.1.2015) by virtue of The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 30(2)(a) (with art. 3)

F2 S. 152(4)(aa) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 30(2)(b) (with art. 3)

F3 Words in s. 152(4)(b) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 30(2)(c) (with art. 3)

F4 Word in s. 152(4)(b) omitted (19.12.2018) by virtue of The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 40(2)(a) (with art. 3)

F5 S. 152(4)(c) and preceding word inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 30(2)(d) (with art. 3)

F6 S. 152(4)(d) and preceding word inserted (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 40(2)(b) (with art. 3)

Modifications etc. (not altering text)

C1 S. 152 modified (28.12.2020 until IP completion day when the amending provision ceases to have effect in accordance with reg. 1(4) of the amending S.I.) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(4), 124(a) (with reg. 108)

Commencement Information

I1 S. 152 in force at 1.4.2010 by S.I. 2010/862, art. 2 (with Sch.)