Paragraph 5 Transfer of assets etc.

(1)

The Secretary of State may transfer relevant property, rights and liabilities of the outgoing DMO to the new DMO, or to the interim scheme administrator, as a consequence of the outgoing DMO ceasing to be the deposit management organisation.

(2)

The relevant property, rights and liabilities of the outgoing DMO that may be transferred under paragraph (1) are as follows—

(a)

data created and compiled specifically for the Scheme;

(b)

land assets;

(c)

intellectual property, including scheme branding;

(d)

deposits;

(e)

IT systems;

(f)

contracts entered into by the outgoing DMO for the purpose of the Scheme;

(g)

collection and processing infrastructure;

(h)

staff and human resources systems.

(3)

The Secretary of State may only transfer such of the relevant property, rights and liabilities set out in paragraph (2) as constitute the minimum assets required to keep the Scheme operational and to protect consumer interests.

(4)

The transfer of any property, rights and liabilities is effective on the new appointment date.

(5)

The property, rights and liabilities that may be transferred under this paragraph include property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the outgoing DMO.

(6)

A transfer of property, rights and liabilities under this paragraph takes effect despite the absence of any required consent or concurrence to or with the transfer and as if—

(a)

no liability existed in respect of a contravention of a requirement for consent or concurrence, and

(b)

there were no interference with any property or right,

that would otherwise exist by reason of any provision (whether under any enactment or agreement or otherwise) having effect in relation to the terms on which the outgoing DMO is entitled to the property or right, or subject to the liability, in question.

(7)

For the purposes of this paragraph, any property, right or liability of the outgoing DMO is relevant property, or a relevant right or liability, only if it was acquired by, or the outgoing DMO became subject to it, in the course of the exercise of its functions as the deposit management organisation under or in connection with the Scheme.

(8)

In this paragraph and paragraph 6—

“the new appointment date” means the date on which the new DMO’s appointment takes effect;
“the new DMO” means the person next appointed as the deposit management organisation following the revocation of the outgoing DMO's appointment;
“the outgoing DMO” means the person whose appointment as the deposit management organisation is revoked under paragraph 3 or 4.