PART 4Social housing in England

CHAPTER 5Insolvency of registered providers of social housing

Financial support for registered providers in housing administration

I1111Indemnities: repayment by registered provider etc

1

This section applies where a sum is paid out by the Secretary of State in consequence of an indemnity agreed to under section 110 in relation to the housing administrator of a registered provider.

2

The registered provider must pay the Secretary of State—

a

such amounts in or towards the repayment to the Secretary of State of that sum as the Secretary of State may direct, and

b

interest on amounts outstanding under this subsection at such rates as the Secretary of State may direct.

3

The payments must be made by the registered provider at such times and in such manner as the Secretary of State may determine.

4

Subsection (2) does not apply in the case of a sum paid by the Secretary of State for indemnifying a person in respect of a liability to the registered provider.

5

The Secretary of State must lay before Parliament a statement, relating to the sum paid out in consequence of the indemnity—

a

as soon as practicable after the end of the financial year in which the sum is paid out, and

b

if subsection (2) applies to the sum, as soon as practicable after the end of each subsequent financial year in relation to which the repayment condition has not been met.

6

The repayment condition is met in relation to a financial year if—

a

the whole of the sum has been repaid to the Secretary of State before the beginning of the year, and

b

the registered provider was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.