PART 3PROVISIONS APPLYING TO ALL OCCUPATION CONTRACTS

CHAPTER 4DEPOSITS AND DEPOSIT SCHEMES

Deposit schemes

45Requirement to use deposit scheme

1

If the contract-holder under an occupation contract pays a deposit (or another person pays a deposit on his or her behalf), the deposit must be dealt with in accordance with an authorised deposit scheme.

2

Before the end of the period of 30 days starting with the day on which the deposit is paid, the landlord must—

a

comply with the initial requirements of an authorised deposit scheme, and

b

give the contract-holder (and any person who has paid the deposit on his or her behalf) the required information.

3

The required information is such information as may be prescribed relating to—

a

the authorised deposit scheme which applies,

b

the landlord’s compliance with the initial requirements of the scheme, and

c

the operation of this Chapter, including the contract-holder’s rights (and the rights of any person who has paid the deposit on his or her behalf) in relation to the deposit.

4

This section is a fundamental provision which is incorporated as a term of all occupation contracts; section 20 provides that this section—

a

must be incorporated, and

b

must not be incorporated with modifications.

46Deposit schemes: further provision

1

Schedule 5 contains further provision about deposit schemes.

2

Sections 177 and 198 make provision relating to periodic standard contracts and fixed term standard contracts with a landlord’s break clause, preventing a landlord from giving a notice requiring a contract-holder to give up possession if the landlord has not complied with certain requirements relating to the payment of security or to deposit schemes.

47Deposit schemes: interpretation

1

In this Act—

  • “authorised deposit scheme” (“cynllun blaendal awdurdodedig”) means a deposit scheme in force in accordance with arrangements under paragraph 1 of Schedule 5 (and “deposit scheme” (“cynllun blaendal”) has the meaning given in sub-paragraph (2) of that paragraph);

  • “deposit” (“blaendal”) means money paid as security;

  • “initial requirements” (“gofynion cychwynnol”), in relation to an authorised deposit scheme, means the requirements of the scheme which must be complied with by the landlord when a deposit is paid;

  • “security” (“sicrwydd”) means security for the performance of the contract-holder’s obligations and the discharge of the contract-holder’s liabilities.

2

In this Act references to a deposit, in relation to a time after a deposit has been paid, are to a sum representing the deposit.