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Regulation 98 Substitution of charged property

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

This regulation applies where a charge has been registered in favour of the Board in pursuance of an agreement made under regulation 96 or 97.

(2)

Where, in a case to which this regulation applies,–

(a)

the assisted person wishes to purchase a different property in substitution for that over which a charge already exists;

(b)

the assisted person agrees in writing on a form approved by the Board to comply with the conditions set out in paragraph (3); and

(c)

the Area Director is satisfied that the property to be purchased will provide adequate security for the sum referred to in regulation 96(3)(b) or regulation 97(4), as the case may be,

the Board may agree to release that charge.

(3)

The conditions referred to in paragraphs (2) and (4) are that–

(a)

the property to be purchased shall be subject to a charge executed in favour of the Board and registered in accordance with regulation 95(3); and

(b)

where simple interest has accrued, it shall continue to accrue for the benefit of the Board at the rate prescribed for the time being for the purposes of regulation 96(3)(b) on the sum referred to in that regulation or in regulation 97(4), as the case may be.

(4)

Where, after a charge has been registered in favour of the Board in pursuance of an agreement made under this regulation,–

(a)

the assisted person wishes to purchase a different property in substitution for the property over which that charge exists;

(b)

the assisted person agrees in writing on a form approved by the Board to comply with the conditions set out in paragraph (3) above; and

(c)

the Area Director is satisfied that the property to be purchased will provide adequate security for the sum referred to in regulation 96(3)(b) or regulation 97(4), as the case may be,

the Board may agree to release that charge.