44 Proposals as to ownership and management of landlord’s land.E+W
(1)During the moratorium (see sections 42 and 43) [F1the Welsh Ministers] may make proposals as to the future ownership and management of the land held by the registered social landlord, designed to secure the continued proper management of the landlord’s land by a registered social landlord.
(2)In drawing up its proposals [F1the Welsh Ministers]—
(a)shall consult the landlord and, so far as is practicable, its tenants, and
(b)shall have regard to the interests of all the landlord’s creditors, both secured and unsecured.
(3)The [F2Relevant Authority] shall also consult—
(a)where the landlord is [F3a registered society], the appropriate registrar, and
(b)where the landlord is a registered charity, the [F4Charity Commission] .
(4)No proposals shall be made under which—
(a)a preferential debt of the landlord is to be paid otherwise than in priority to debts which are not preferential debts, F5...
[F6(aa)an ordinary preferential debt of the landlord is to be paid otherwise than in priority to any secondary preferential debts that the landlord may have,]
(b)a preferential creditor is to be paid a smaller proportion of [F7an ordinary preferential debt] than another preferential creditor, except with the concurrence of the creditor concerned F8[F9...
(c)a preferential creditor is to be paid a smaller proportion of a secondary preferential debt than another preferential creditor, except with the concurrence of the creditor concerned.] [F10or
(d)if the landlord is a relevant financial institution—
(i)an ordinary non-preferential debt of the landlord is to be paid otherwise than in priority to any secondary non-preferential debts of the landlord,
(ii)a secondary non-preferential debt of the landlord is to be paid otherwise than in priority to any tertiary non-preferential debts of the landlord, or
(iii)a secondary non-preferential creditor is to be paid a smaller proportion of a secondary non-preferential debt of the landlord than another secondary non-preferential creditor, except with the concurrence of the creditor concerned.]
In this subsection references to preferential debts [F11, ordinary preferential debts, secondary preferential debts] [F12, ordinary non-preferential debts, secondary non-preferential debts, tertiary non-preferential debts, relevant financial institution] and preferential creditors have the same meaning as in the M1Insolvency Act 1986.
(5)So far as practicable no proposals shall be made which have the effect that unsecured creditors of the landlord are in a worse position than they would otherwise be.
(6)Where the landlord is a charity the proposals shall not require the landlord to act outside the terms of its trusts, and any disposal of housing accommodation occupied under a tenancy or licence from the landlord must be to another charity whose objects appear to [F1the Welsh Ministers] to be, as nearly as practicable, akin to those of the landlord.
(7)The [F2Relevant Authority] shall serve a copy of its proposals on—
(a)the landlord and its officers,
(b)the secured creditors of the landlord, and
(c)any liquidator, administrator, administrative receiver or receiver appointed in respect of the landlord or its land;
and it shall make such arrangements as it considers appropriate to see that the members, tenants and unsecured creditors of the landlord are informed of the proposals.
Textual Amendments
F1Words in Pt. I substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 61(7), 325(1); S.I. 2010/862, art. 2 (with Sch.)
F2Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.
F3Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 56 (with Sch. 5)
F4Words in s. 44(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 187; S.I. 2007/309, art. 2, Sch.
F5Word in s. 44(4)(a) omitted (1.1.2015) by virtue of The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 29(2)(a) (with art. 3)
F6S. 44(4)(aa) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 29(2)(b) (with art. 3)
F7Words in s. 44(4)(b) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 29(2)(c) (with art. 3)
F8Word in s. 44(4)(b) omitted (19.12.2018) by virtue of The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 39(2) (with art. 3)
F9S. 44(4)(c) and word inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 29(2)(d) (with art. 3)
F10S. 44(4)(d) and word inserted (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 39(3) (with art. 3)
F11Words in s. 44(4) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 29(2)(e) (with art. 3)
F12Words in s. 44(4) inserted (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 39(4) (with art. 3)
Modifications etc. (not altering text)
C1S. 44 modified (28.12.2020 until IP completion day when the amending provision ceases to have effect in accordance with reg. 1(4) of the amending S.I.) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(4), 123 (with reg. 108)
Marginal Citations