3(1)This paragraph applies to a custodial scheme.E+W
(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.
Textual Amendments
F1Words in Sch. 10 para. 3(5) inserted (6.4.2007) by The Housing (Tenancy Deposit Schemes) Order 2007 (S.I. 2007/796), art. 11
F2Words in Sch. 10 substituted (1.12.2022) by The Renting Homes (Wales) Act 2016 (Consequential Amendments) Regulations 2022 (S.I. 2022/1166), regs. 1(1), 28(9) (with savings and transitional provisions in S.I. 2022/1172, regs. 9, 19)
Commencement Information
I1Sch. 10 para. 3. wholly in force at 6.4.2007; Sch. 10 para. 3. in force for certain purposes at Royal Assent see s. 270(2)(b); Sch. 10 para. 3. in force for W. at 6.4.2007 by S.I. 2007/305, art. 2; Sch. 10 para. 3. in force for E. at 6.4.2007 by S.I. 2007/1068, art. 2(a)