10.—(1) All rights and liabilities of an abolished council in respect of mortgages of land shall vest in the appropriate residuary body, and each such body shall be treated as a local authority for the purposes of section 442(1)(a) of, and Schedule 18 to, the Housing Act 1985.
(2) Subject to paragraphs (3) to (5), all rights and liabilities of an abolished council acquired or incurred in pursuance of the enactments specified in Schedule 3 shall vest in the appropriate residuary body.
(3) As respects any case in which an application for a grant has been approved by the Greater London Council under Part VII of the Housing Act 1974, any sum by way of grant unpaid on 1st April 1986 shall be payable by the local council on the completion of the relevant works to their satisfaction.
(4) Where any grant under Part VII of the Housing Act 1974 has been paid in part by the Greater London Council and as to the remainder falls to be paid by the local council—
(a)section 516 of the Housing Act 1985 shall apply as if the London Residuary Body and the local council had each paid a grant equal in amount to the amount so paid; and
(b)the other provisions of Part XV of that Act shall have effect as if the local council had paid the sum paid by the Greater London Council.
(5) Where any applicant has been notified by the Greater London Council for the purposes of the Homes Insulation Act 1978 that he may proceed to execute works, but by 1st April 1986 no grant has been paid, all rights and liabilities arising in respect of the notification shall vest in the local council.
(6) All rights and liabilities of an abolished council under the Home Purchase Assistance and Housing Corporation Guarantee Act 1978 shall vest in the appropriate residuary body, which shall be treated as a recognised lending institution for the purposes of section 447 of the Housing Act 1985.