3(1)Subject to sub-paragraphs (2) and (3) below, the obligations of the Corporation towards any resident under paragraph 2(1) above shall cease, notwithstanding that the period of dispossession has not expired—E+W+S
(a)if the occupier has ceased (otherwise than by reason of his death) to be entitled to possession of the dwelling-house or, as the case may be, of the site of the dwelling-house; or
(b)on the expiration of a period of six months from the service by the Corporation on the resident in question of notice of the opinion of the Corporation—
(i)that the period of dispossession will continue indefinitely or will be unreasonably long; or
(ii)that the resident in question will not resume residence at or on the site of the dwelling-house at the expiration of that period.
(2)Where a damage notice has been given in respect of the dwelling-house, the Corporation shall not be entitled to give a notice under sub-paragraph (1)(b)(i) above—
(a)unless the Corporation have elected to make a payment under section 8 or 10 of this Act or are obliged to make a payment under section 11(1) of this Act; or
(b)while a notice under section 16(2) of this Act is in force with respect to the dwelling-house.
(3)Any person upon whom a notice under sub-paragraph (1)(b) above is served may apply to the county court or, where the dwelling-house is situated in Scotland, to the sheriff, and the court or sheriff, if satisfied that there are not reasonable grounds for the opinion of the Corporation, may declare the notice to be of no effect.
Commencement Information
I1Sch. 5 para. 3 wholly in force at 30.11.1991 see s. 54(2) and S.I. 1991/2508, art. 2