(1)Section 9 of the [1984 c. 32.] London Regional Transport Act 1984 (powers of disposal) shall be amended as follows.
(2)In subsection (1)(a) (power to dispose of securities of one of their subsidiaries) for “one of their subsidiaries” there shall be substituted “any subsidiary of theirs”.
(3)At the end of the section there shall be added—
“(8)In this section—
“disposal” means disposal—
by way of sale, exchange or lease,
by way of the grant of any option or the creation of any easement, right or privilege, or
in any other manner, except by way of appropriation or mortgage,
and “dispose of” shall be construed accordingly;
“lease” includes an underlease and an agreement for a lease or underlease, but does not include an option to take a lease or a mortgage.”
(1)Section 17 of the [1984 c. 32.] London Regional Transport Act 1984 (power of London Regional Transport to give financial assistance to subsidiaries and other bodies or persons) shall be amended as follows.
(2)In subsection (2) after “section 3(2)” there shall be inserted “or (2A)”.
(3)After subsection (3) there shall be inserted—
“(3A)London Regional Transport may enter into arrangements with another person under which that person gives a guarantee which London Regional Transport has power to give under this section.
(3B)Where London Regional Transport enters into arrangements by virtue of subsection (3A) above, the arrangements may provide for London Regional Transport to indemnify the person who gives the guarantee.”
(1)Section 27 of the [1984 c. 32.] London Regional Transport Act 1984 (supplementary provisions with respect to transfer schemes) shall be amended as follows.
(2)In subsection (9) (modifications of Schedule 4 to the Transport Act 1968 in its application by subsection (8)) the word “and” at the end of paragraph (a) shall be omitted and after that paragraph there shall be inserted—
“(aa)the reference in paragraph 1(1) to all property, rights and liabilities comprised in a specified part of the transferor’s undertaking shall be read as including a reference to all such property, rights and liabilities subject to such exceptions as may be specified or described, or otherwise provided for, by the transfer scheme in question;
(ab)the reference in paragraph 13(1) to requiring the consent or concurrence of any person shall be read as including—
(i)a reference to being (and, where applicable, continuing after the transaction) in breach of any condition, requirement or restriction, and
(ii)a reference to any relevant right or option operating or becoming exercisable,
(and any such relevant right or option shall accordingly have effect as if the transferee were the same person in law as the transferor and no transaction had taken place); and”.
(3)After subsection (9) there shall be inserted—
“(10)In subsection (9)(ab) above “relevant right or option” means any right of reverter, right of pre-emption, right of forfeiture, right of re-entry, right to compensation, option or similar right affecting any land or other property, or any right to terminate or vary a contract.”