40.—(1) The Housing and Regeneration Act 2008(1) is amended as follows.
(2) In section 152 (proposals)(2), in subsection (4)—
(a)in paragraph (b), omit the final “or”;
(b)after paragraph (c), insert—
“or
(d)if the registered provider is a relevant financial institution—
(i)an ordinary non-preferential debt being paid otherwise than in priority to a secondary non-preferential debt,
(ii)a secondary non-preferential debt being paid otherwise than in priority to a tertiary non-preferential debt, or
(iii)a secondary non-preferential creditor (Creditor 1) being paid a smaller proportion of a secondary non-preferential debt than another secondary non-preferential creditor (Creditor 2) (unless Creditor 1 consents).”.
(3) In section 275 (general)(3), for “and “secondary preferential debt”” substitute “, “ordinary non-preferential debt”, “secondary preferential debt”, “secondary non-preferential debt”, “tertiary non-preferential debt” and “relevant financial institution””.
(4) In section 276 (index of defined terms)(4), in the table, insert the following entries at the appropriate places—
| “Ordinary non-preferential debt | Section 275” |
| “Relevant financial institution | Section 275” |
| “Secondary non-preferential debt | Section 275” |
| “Tertiary non-preferential debt | Section 275” |
Section 152 was amended by S.I. 2014/3486.
Section 275 was amended by the Charities Act 2011 c. 25 Schedule 7(2) paragraph 135, the Co-operative and Community Benefit Societies Act 2014 c. 14 Schedule 4(2) paragraphs 122 and 136, the Housing and Planning Act 2016 c. 22 Schedule 4(4) paragraph 38 and Schedule 6 paragraph 9 and S.I. 2014/2486.
Section 276 was amended by the Localism Act 2011 c. 20 Schedule 16(1) paragraph 53 and Schedule 25(26) paragraph 1, the Co-operative and Community Benefit Societies Act 2014 c. 14 Schedule 4(2) paragraph 123 and paragraph 137, the Housing and Planning Act 2016 c. 22 Schedule 6 paragraph 10, S.I. 2010/844 and S.I. 2018/1040.