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7.—(1) A beneficiary under the Habitats (Scotland) Regulations 1994, the Set-Aside Access (Scotland) Regulations 1994(1) or the Heather Moorland (Livestock Extensification) (Scotland) Regulations 1995(2) may apply to substitute for the unexpired period of an undertaking under any of those Regulations an undertaking to which these Regulations apply.
(2) The Secretary of State may accept an application under paragraph (1) only where he is satisfied that the conditions set out in article 13 (transformation of undertakings) of the Commission Regulation are met.
(3) The acceptance by the Secretary of State of an application under paragraph (1) shall not give rise to any right or liability under these Regulations for anything done prior to the date of commencement of the undertaking to which these Regulations apply except to the extent that payment is provided under these Regulations for any period which commenced on or after that date in respect of stock disposal prior to that date.
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