Part 4A

Regulation of loans and related transactions

CHAPTER 1

Regulated transaction involving unauthorised participant
71I
1
This section applies if a registered party is a party to a regulated transaction in which another participant is not an authorised participant.
2
The transaction is void.
3
Despite subsection (2)—
a
any money received by the registered party by virtue of the transaction must be repaid by the treasurer of the party to the person from whom it was received, along with interest at such rate as is determined in accordance with an order made by the Secretary of State;
b
that person is entitled to recover the money, along with such interest.
4
If—
a
the money is not (for whatever reason) repaid as mentioned in subsection (3)(a), or
b
the person entitled to recover the money refuses or fails to do so,
the Commission may apply to the court to make such order as it thinks fit to restore (so far as is possible) the parties to the transaction to the position they would have been in if the transaction had not been entered into.
5
An order under subsection (4) may in particular—
a
where the transaction is a loan or credit facility, require that any amount owed by the registered party be repaid (and that no further sums be advanced under it);
b
where any form of security is given for a sum owed under the transaction, require that security to be discharged.
6
In the case of a regulated transaction where a party other than a registered party—
a
at the time the registered party enters into the transaction, is an authorised participant, but
b
subsequently, for whatever reason, ceases to be an authorised participant,
the transaction is void and subsections (3) to (5) apply with effect from the time when the other party ceased to be an authorised participant.
7
This section does not apply to a regulated transaction if it was entered into before the commencement of section 61 of the Electoral Administration Act 2006.
Pt. 4A (ss. 71F-71X) inserted (11.9.2006 for E.W.S. for specified purposes, 1.1.2007 for N.I. for specified purposes, 1.7.2008 for N.I. for specified purposes, 15.9.2014 for N.I. in so far as not already in force) by Electoral Administration Act 2006 (c. 22), ss. 61(1), 77(2); S.I. 2006/1972, art. 3, Sch. 1 para. 20(a) (subject to art. 4, Sch. 2) (as substituted by S.I. 2006/2268, art. 3); S.I. 2006/3412, art. 4 (subject to art. 6, Sch. 2); S.I. 2008/1656, art. 2 (subject to art. 3, Sch. 1); S.I. 2014/1809, art. 2
Pt. 4A (ss. 71F-71Y) renumbered (1.7.2008) as Pt. 4A Ch. 1 by The Electoral Administration Act 2006 (Regulation of Loans etc: Northern Ireland) Order 2008 (S.I. 2008/1319), arts. 1(2), 3(1)
The insertion of the new heading "Chapter 1" in Pt. 4A on 1.7.2008 gives rise to a change in the structure of this legislation on SLD which breaks the continuity of historical versions of the existing provisions which are now brought under that new heading.
S. 71I(7) modified (30.1.2009) by The European Parliamentary Elections (Loans and Related Transactions and Miscellaneous Provisions) (United Kingdom and Gibraltar) Order 2009 (S.I. 2009/185), arts. 1(2), 2(2), Sch. para. 6
Pt. 4A modified (1.2.2016) by European Union Referendum Act 2015 (c. 36), s. 13(2), Sch. 2 para. 10(2); S.I. 2016/69, reg. 2
S. 71I modified (1.2.2016) by European Union Referendum Act 2015 (c. 36), s. 13(2), Sch. 2 para. 12; S.I. 2016/69, reg. 2
Pt. 4A modified (1.2.2016) by European Union Referendum Act 2015 (c. 36), s. 13(2), Sch. 1 para. 28; S.I. 2016/69, reg. 2