PART 3PROVISIONS APPLYING TO ALL OCCUPATION CONTRACTS

CHAPTER 4DEPOSITS AND DEPOSIT SCHEMES

Deposit schemes

C1C245Requirement to use deposit scheme

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If the contract-holder under an occupation contract pays a deposit (or another person pays a deposit on his or her behalf), the deposit must be dealt with in accordance with an authorised deposit scheme.

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Before the end of the period of 30 days starting with the day on which the deposit is paid, the landlord must—

a

comply with the initial requirements of an authorised deposit scheme, and

b

give the contract-holder (and any person who has paid the deposit on his or her behalf) the required information.

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The required information is such information as may be prescribed relating to—

a

the authorised deposit scheme which applies,

b

the landlord's compliance with the initial requirements of the scheme, and

c

the operation of this Chapter, including the contract-holder's rights (and the rights of any person who has paid the deposit on his or her behalf) in relation to the deposit.

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This section is a fundamental provision which is incorporated as a term of all occupation contracts; section 20 provides that this section—

a

must be incorporated, and

b

must not be incorporated with modifications.