Schedules
Schedule 7Special measures
I16Payments received by special measures manager to be held on trust
1
This paragraph applies where a special measures order relating to a higher-risk building requires one or more accountable persons for the building to make payments to the special measures manager for the building.
2
The manager must hold the payments (together with any income accruing on those payments) as either—
a
a single trust fund, or
b
in two or more separate trust funds.
3
The manager must hold any trust fund—
a
on trust to defray relevant expenses, and
b
subject to that, on trust for the accountable person or persons for the building for the time being.
4
The accountable person or persons for the building for the time being are to be treated as entitled by virtue of sub-paragraph (3)(b) to—
a
if there is one accountable person for the building, the residue of the fund or funds;
b
otherwise, to such shares in that residue as the accountable persons may agree in writing or (in default of agreement) as the tribunal may direct.
5
An application for a direction under sub-paragraph (4)(b) may be made by—
a
the regulator,
b
an accountable person for the building, or
c
the manager.