(1)Transport for London may not by virtue of any provision of this Act or any other enactment enter into or carry out any agreement with respect to the provision or retention, or financing, of public passenger transport services if the agreement—
(a)is one which involves the holding of a passenger licence; and
(b)is not an excepted agreement.
(2)An agreement “involves the holding of a passenger licence” for the purposes of this section if it involves the doing by any person, whether or not a party to the agreement, of anything which, by virtue of section 6 of the [1993 c. 43.] Railways Act 1993 (prohibition on unauthorised operators of railway assets), that person may not do without the authorisation of a passenger licence.
(3)An agreement is an “excepted agreement” for the purposes of this section if it is—
(a)an agreement with respect to the provision or retention, or financing, of regular scheduled railway passenger services operated by a London transport body;
(b)an agreement with respect to the provision or retention, or financing, of regular scheduled railway passenger services operated by a person other than a London transport body on track used for the provision of regular scheduled railway passenger services operated by a London transport body (whether or not the track is also used for other purposes);
(c)an agreement with the Franchising Director; or
(d)an agreement under section 177 above, other than one falling within subsection (4) below.
(4)An agreement falls within this subsection if, in pursuance of the agreement, Transport for London or a subsidiary of Transport for London is to enter into a further agreement which involves the holding of a passenger licence.
(5)In this section “London transport body” means—
(a)London Regional Transport;
(b)Transport for London; or
(c)a subsidiary of London Regional Transport or Transport for London;
and, subject to that, expressions used in this section and in Part I of the [1993 c. 43.] Railways Act 1993 have the same meaning in this section as in that Part.