SCHEDULES
SCHEDULE 10Provisions relating to tenancy deposit schemes
Custodial Schemes:general
I13
1
This paragraph applies to a custodial scheme.
2
The scheme must provide for any landlord who receives a tenancy deposit in connection with a shorthold tenancy to pay an amount equal to the deposit into a designated account held by the scheme administrator.
3
The designated account must not contain anything other than amounts paid into it as mentioned in sub-paragraph (2) and any interest accruing on such amounts.
4
Subject to sub-paragraph (5), the scheme administrator may retain any interest accruing on such amounts.
5
The relevant arrangements under section 212(1) may provide for any amount paid in accordance with paragraph 4 F1or 4C to be paid with interest -
a
in respect of the period during which the relevant amount has remained in the designated account, and
b
at such rate as the F2Secretary of State may specify by order.
6
With the exception of any interest retained in accordance with subparagaph (4), nothing contained in the designated account may be used to fund the administration of the scheme.
7
In this paragraph "the relevant amount", in relation to a tenancy deposit, means the amount paid into the designated account in respect of the deposit.