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Social Services and Well-being (Wales) Act 2014

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68Deferred payment agreements

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(1)Regulations may specify cases or circumstances in which, or conditions subject to which, a local authority may or must enter into a deferred payment agreement with a person who is required (or is going to be required) to pay a charge under section 59.

(2)A deferred payment agreement is an agreement under which—

(a)the local authority agrees not to require payment of the person’s required amount until the time specified in or determined in accordance with the regulations, and

(b)the person agrees to give the local authority a charge over the person’s interest in his or her home to secure payment of the person’s required amount.

(3)The person’s required amount is so much of the charge that the person is required (or is going to be required) to pay under section 59 as is specified in or determined in accordance with the regulations.

(4)The regulations may require or permit the local authority to charge—

(a)interest on the person’s required amount;

(b)such amount relating to the local authority’s administrative costs as is specified in or determined in accordance with the regulations;

(c)interest on an amount charged under paragraph (b).

(5)The regulations may provide for interest referred to in subsection (4)(a) to be charged by means of an obligation in the deferred payment agreement and to be treated in the same way as the person’s required amount.

(6)The regulations may—

(a)specify costs which are, or which are not, to be regarded as administrative costs for the purposes of subsection (4)(b);

(b)provide for an amount referred to in subsection (4)(b) or for interest referred to in subsection (4)(c) to be charged by means of an obligation in the deferred payment agreement and to be treated in the same way as the person’s required amount.

(7)The local authority may not charge interest under regulations made under subsection (4) at a rate that exceeds the rate specified in or determined in accordance with the regulations.

(8)The regulations must make provision about the duration of the agreement and for its termination by either party; the regulations must, among other things, enable the person to terminate it and the charge to which it gives effect by—

(a)giving the local authority notice, and

(b)paying the authority the full amount for which the person is liable with respect to the person’s required amount and any amount charged under regulations made by virtue of subsection (4).

(9)The regulations may make provision as to the rights and obligations of the local authority and the person where the person disposes of the interest to which the agreement relates and acquires an interest in another property in Wales or England; the regulations may, for example, make provision—

(a)for the local authority not to require payment of the amounts referred to in subsection (8)(b) until a time specified in or determined in accordance with the regulations, and

(b)for the person to give the local authority a charge over his or her interest in the other property.

(10)A reference to a person’s home is a reference to the property which the person occupies as his or her only or main residence; and a reference to a person’s interest in a property is a reference to the person’s legal or beneficial interest in that property.

(11)Regulations may apply this section, with or without modifications, for the purpose of enabling a person to agree to give a charge over the person’s interest in a property in Wales or England which he or she used to occupy as his or her only or main residence.

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