PART 7MISCELLANEOUS AND GENERAL

Guarantees in respect of payment of compensation43

1

The undertaker must not exercise the powers conferred by the provisions referred to in paragraph (2) in relation to any land unless it has first put in place either—

a

a guarantee in respect of the liabilities of the undertaker to pay compensation under this Order in respect of the exercise of the relevant power in relation to that land and the amount of that guarantee has been approved by the Secretary of State; or

b

an alternative form of security and the amount of that security for that purpose has been approved by the Secretary of State.

2

The provisions are—

a

article 17 (compulsory acquisition of land);

b

article 20 (compulsory acquisition of rights etc);

c

article 21 (private rights);

d

article 25 (rights under or over streets);

e

article 26 (temporary use of land for carrying out the authorised development);

f

article 27 (temporary use of land for maintaining the authorised development); and

g

article 28 (statutory undertakers).

3

A guarantee or alternative form of security given in respect of any liability of the undertaker to pay compensation under this Order is to be treated as enforceable against the guarantor or person providing the alternative form of security by any person to whom such compensation is payable and must be in such a form as to be capable of enforcement by such a person.

4

Nothing in this article requires a guarantee or alternative form of security to be in place for more than 15 years after the date on which the relevant power is exercised.