Part 4A

Regulation of loans and related transactions

CHAPTER 1

Guarantees and securities: unauthorised participants
71J
1
This section applies if—
a
a registered party and another person (A) enter into a transaction of a description mentioned in section 71F(4)(a),
b
A is party to a regulated transaction of a description mentioned in section 71F(4)(b) (“the connected transaction”) with another person (B), and
c
B is not an authorised participant.
2
Section 71I(2) to (5) applies to the transaction mentioned in subsection (1)(a).
3
The connected transaction is void.
4
Subsection (5) applies if (but only if) A is unable to recover from the party the whole of the money mentioned in section 71I(3)(a) (as applied by subsection (2) above), along with such interest as is there mentioned.
5
Despite subsection (3), A is entitled to recover from B any part of that money (and such interest) that is not recovered from the party.
6
Subsection (5) does not entitle A to recover more than the contingent liability under the security provided by virtue of the connected transaction.
7
In the case of a connected transaction where B—
a
at the time A enters into the transaction, is an authorised participant, but
b
subsequently, for whatever reason, ceases to be an authorised participant,
subsections (2) to (6) apply with effect from the time when B ceased to be an authorised participant.
8
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.
9
If the transaction mentioned in section 71F(4)(a) is not a regulated transaction of a description mentioned in section 71F(2) or (3), references in this section and section 71I(2) to (5) (as applied by subsection (2) above) to the repayment or recovery of money must be construed as references to (as the case may be)—
a
the return or recovery of any property provided under the transaction,
b
to the extent that such property is incapable of being returned or recovered or its market value has diminished since the time the transaction was entered into, the repayment or recovery of the market value at that time, or
c
the market value (at that time) of any facilities or services provided under the transaction.
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. 71J(8) 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. 7
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
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