(1)The Regulator may, during a moratorium, make proposals about the future ownership and management of the registered social landlord's land with a view to ensuring that land is managed properly in the future by a registered social landlord.
(2)Before making proposals, the Regulator must consult—
(a)the registered social landlord,
(b)all of the registered social landlord's secured creditors whom the Regulator can locate after making reasonable enquiries,
(c)the registered social landlord's tenants (so far as practicable),
(d)where the registered social landlord is a registered society, the Financial Services Authority, and
(e)where the registered social landlord is a charity, the Office of the Scottish Charity Regulator.
(3)The Regulator must, when formulating proposals—
(a)have regard to the interests of the registered social landlord's creditors as a whole (both secured and unsecured), and
(b)so far as practicable, aim to avoid worsening the position of the registered social landlord's unsecured creditors.
(4)Proposals may provide for the appointment of a manager to implement the proposals (and proposals which do so must provide for the payment of the manager's remuneration and expenses).
(5)Proposals must not include anything which would result in—
(a)non-preferential debts being paid before preferential debts,
(b)preferential creditors being paid different proportions of preferential debts (except where affected preferential creditors agree to be paid a smaller proportion).
“preferential debt” and “preferential creditor” have the same meaning as in the Insolvency Act 1986 (c.45).