57.—(1) This regulation applies where—
(a)personal independence payment is payable in respect of a claimant by virtue of entitlement to the mobility component at the enhanced rate; and
(b)under arrangements made or negotiated by Motability, an agreement has been entered into by or on behalf of the claimant for the hire or hire-purchase of a vehicle.
(2) Where this regulation applies, the Department may arrange that any personal independence payment by virtue of entitlement to the mobility component at the enhanced rate be paid in whole or in part on behalf of the claimant in settlement of liability for payments due under the agreement mentioned in paragraph (1).
(3) Subject to regulations 58 and 59, in the case of the hire of a vehicle, an arrangement made by the Department under paragraph (2) terminates—
(a)where the vehicle is returned to the owner at or before the expiration of the term of hire or any agreed extension of the term of hire, on expiry of the period of the term or extended term;
(b)where the vehicle is retained by or on behalf of the claimant with the owner’s consent after the expiration of the term of hire or any agreed extension of the term of hire, on expiry of the period of the term or extended term; or
(c)where the vehicle is retained by or on behalf of the claimant otherwise than with the owner’s consent after the expiration of the term of hire or any agreed extension of the term of hire, or its earlier termination, on expiry of whichever is the longer of the following periods—
(i)the period ending with the return of the vehicle to the owner, or
(ii)the period of the term of hire or any agreed extension of the term of hire.
(4) Subject to regulations 58 and 59 in the case of a hire-purchase agreement, an arrangement made by the Department under paragraph (2) terminates—
(a)on the purchase of the vehicle; or
(b)where the vehicle is returned to, or is repossessed by, the owner under the terms of the agreement before the completion of the purchase, at the end of the original period of the agreement.
(5) In this regulation “Motability” means the company, set up under that name as a charity and originally incorporated under the Companies Act 1985(1) and subsequently incorporated by Royal Charter.