Article 5 Powers of disposal to others

(1)

In this article—

“lease” includes an underlease and “lease”, where used as a verb, shall be construed accordingly;
“the transferee” means any person to whom the railway, or any part of it, is leased, sold or otherwise disposed of under the powers conferred by this article; and
“the transferred undertaking” means so much of the railway as is leased, sold or otherwise disposed of pursuant to this article.

(2)

The Council may, with the consent of the Secretary of State, sell, lease, charge or otherwise dispose of, on such terms and conditions as it thinks fit, the whole or any part of the railway.

(3)

Except as may be otherwise provided in this Order—

(a)

the transferred undertaking shall continue to be subject to all statutory or other provisions applicable to the transferred undertaking at the date of the lease, sale or other disposal (in so far as they are still subsisting and capable of taking effect); and

(b)

the transferee shall, to the exclusion of the Council (except as may be provided by the terms of the lease, sale or disposal)—

(i)

be entitled to the benefit of, and to exercise, all rights, powers and privileges relating to the transferred undertaking; and

(ii)

be subject to all obligations, statutory or otherwise, relating to the transferred undertaking (in so far as they are still subsisting and capable of taking effect) to the intent that the Council shall be released from all such obligations.

(4)

Paragraph (3) shall have effect during the term of any lease granted, and from the operative date of any sale or other disposal, under the powers conferred by this article.

(5)

The exercise of the powers under any enactment by any person in pursuance of any sale, lease, charge or other disposal under paragraph (2) shall be subject to the same restrictions, liabilities and obligations as would apply under this Order if those powers were exercised by the Council.