Part 7Registered social landlords: insolvency etc.
Making proposals
80Proposals: formulation
1
The Regulator may, during a moratorium, make proposals about the future ownership and management of the registered social landlord’s land with a view to ensuring that land is managed properly in the future by a registered social landlord.
2
Before making proposals, the Regulator must consult—
a
the registered social landlord,
b
all of the registered social landlord’s secured creditors whom the Regulator can locate after making reasonable enquiries,
c
the registered social landlord’s tenants (so far as practicable),
d
where the registered social landlord is a registered society, the Financial Services Authority, and
e
where the registered social landlord is a charity, the Office of the Scottish Charity Regulator.
3
The Regulator must, when formulating proposals—
a
have regard to the interests of the registered social landlord’s creditors as a whole (both secured and unsecured), and
b
so far as practicable, aim to avoid worsening the position of the registered social landlord’s unsecured creditors.
4
Proposals may provide for the appointment of a manager to implement the proposals (and proposals which do so must provide for the payment of the manager’s remuneration and expenses).
5
Proposals must not include anything which would result in—
a
non-preferential debts being paid before preferential debts,
b
preferential creditors being paid different proportions of preferential debts (except where affected preferential creditors agree to be paid a smaller proportion).
“preferential debt” and “preferential creditor” have the same meaning as in the Insolvency Act 1986 (c.45).
81Proposals: submission
1
The Regulator must submit its proposals to all of the registered social landlord’s secured creditors whom the Regulator can locate after making reasonable enquiries.
2
The Regulator must give notice of submitted proposals to—
a
the registered social landlord and its officers, and
b
any liquidator, administrative receiver, receiver or administrator appointed in respect of the registered social landlord or its land.
3
The Regulator must also make arrangements for bringing submitted proposals to the attention of the registered social landlord’s members, tenants and unsecured creditors.
82Proposals: agreement
1
Secured creditors to whom proposals are submitted under section 81 may—
a
agree to the proposals (with or without modification), or
b
reject the proposals.
2
Proposals agreed with modifications have effect only if the Regulator agrees to the modifications.
3
The Regulator must give notice of agreed proposals to—
a
the registered social landlord and its officers,
b
all of the registered social landlord’s secured creditors whom the Regulator can locate after making reasonable enquiries,
c
any liquidator, administrative receiver, receiver or administrator appointed in respect of the registered social landlord or its land,
d
where the registered social landlord is a registered society, the Financial Services Authority, and
e
where the registered social landlord is a charity, the Office of the Scottish Charity Regulator.
4
The Regulator must also make arrangements for bringing agreed proposals to the attention of the registered social landlord’s members, tenants and unsecured creditors.
83Modifying proposals
1
Agreed proposals may be modified from time to time with the agreement of—
a
the Regulator, and
b
all of the registered social landlord’s secured creditors to whom the original proposals were submitted.
2
Sections 80 and 82(3) apply to modified proposals as to the original proposals (and references in sections 84 to 90 to agreed proposals include references to modified proposals).