The Housing (Scotland) Act 2001 (Assistance to Registered Social Landlords and Other Persons) (Grants) Regulations 2004

Terms and conditions applying to all categories of grant assistance

6.  In addition to the terms and conditions referred to in regulation 4(d) the terms and conditions set out in the following paragraphs shall apply on the provision of all categories of grant assistance and shall be incorporated in every offer of grant–

(a) no payment of grant shall be made until an offer of grant is accepted;

(b) failure to comply with the terms and conditions in this regulation and those applying to the category of grant to which the offer of grant relates shall be deemed to be a default on the part of the grant recipient and the local authority may, on such a default, enforce its rights in accordance with that offer of grant and these Regulations;

(c) the grant recipient shall make payment of any sum due to the local authority in terms of the offer of grant by a date specified by that local authority for that purpose and interest at a rate as may be reasonably determined by that local authority shall be payable by that grant recipient to that local authority on any sum which is overdue;

(d) the grant recipient and the local authority shall bear their own legal fees which arise in connection with the grant and the grant recipient will pay all registration and recording dues in connection with the taking of any security;

(e) the project shall comply with all applicable statutory requirements;

(f) the grant recipient shall indemnify the local authority from and against all actions, proceedings, claims, losses, expenses and damages arising from any breach by that grant recipient of any undertaking or obligation in connection with the grant and for all liability in respect of personal injury to or death of any person or of any damage to any property arising out of or in the course of or caused by the carrying out of the project by that grant recipient or those authorised by it;

(g) the subjects and the units shall be adequately insured to the satisfaction of the local authority and in the case of the units for at least full reinstatement value;

(h) the grant recipient shall not breach any agreement with the local authority in respect of the project;

(i) the project shall be carried out with all due diligence, completed to the satisfaction of the local authority and no material changes shall be made to the approved documents without the prior written consent of that local authority;

(j) the offer of grant shall be deemed to be withdrawn where the project does not commence or proceed within time periods specified in that offer of grant unless the local authority consents in writing to extend those specified periods;

(k) save for grant assistance provided by GPSE in terms of Schedule 4 to these Regulations, either the grant recipient or the granter of a licence agreement to the grant recipient has or can obtain a good and marketable title to the subjects with no burdens, conditions, restrictions or servitudes affecting the subjects which would adversely affect the project;

(l) in the event of the grant recipient receiving, or being entitled to receive, any other monies for the project not disclosed by that grant recipient to the local authority at the time of the grant application, that grant recipient shall disclose the nature and the amount of the other such monies to that local authority within 7 days of being advised that it is to receive, or is entitled to receive, other such monies and that local authority shall be entitled at its sole discretion to–

(i) reduce the amount of grant then unpaid by such sum as that local authority reasonably considers appropriate; or

(ii) require repayment of any grant then paid up to the full amount of the grant;

(m) for the term of the grant–

(i) the grant recipient shall not be, nor be deemed for the purpose of any law to be, unable to pay its debts as they fall due;

(ii) the grant recipient shall not be insolvent nor apparently insolvent, nor admit inability to pay its debts as they fall due and an insolvency practitioner, administrative receiver, receiver or liquidator or administrator shall not be appointed to that grant recipient or in respect of any of its assets, and steps shall not be taken to appoint any of the foregoing;

(iii) save where the grant recipient is an RSL or a public company, there shall be no change in the composition, constitution or control of the grant recipient without the prior written consent of the local authority;

(iv) the grant recipient will not assign its rights or obligations in respect of the grant or any part of it to any other person or body without the prior written consent of the local authority;

(v) the grant recipient shall not be wound up, struck off or dissolved, other than for the purpose of restructuring of that grant recipient for trading purposes;

(vi) the grant recipient shall not cease or threaten to cease operating or trading;

(vii) there shall be no legal diligence or execution affecting any material asset of the grant recipient required for the project;

(n) the grant recipient shall not provide false or misleading information to the local authority or omit to provide information that has been requested by that local authority;

(o) for the term of the grant no security over the subjects shall be called up or enforced; and

(p) save where the grant recipient is an RSL, for the term of the grant the grant recipient shall not create or permit any security, encumbrance or diligence over or affecting the subjects other than–

(i) any permitted security; or

(ii) any security granted in favour of the local authority.