{
  "url": "https://openlegislation.uk/financial-services-act-1986-single-property-schemes-exemption-regulations-1989/regulation-19",
  "json_url": "https://openlegislation.uk/financial-services-act-1986-single-property-schemes-exemption-regulations-1989/regulation-19.json",
  "legislation": "uksi/1989/28",
  "legislation_title": "The Financial Services Act 1986 (Single Property Schemes) (Exemption) Regulations 1989",
  "legislation_url": "https://openlegislation.uk/financial-services-act-1986-single-property-schemes-exemption-regulations-1989",
  "path": "regulation/19",
  "kind": "regulation",
  "number": "19",
  "heading": "Requirements as to borrowing: corporate based schemes",
  "text": "(1) Subject to the provisions of regulation 21, the terms of a corporate based scheme must fulfil the conditions specified in either paragraph (2) or (3).\n(2) The conditions specified in this paragraph are that the terms of a corporate based scheme must–\n(a) provide that no sum may be borrowed which is repayable out of the property subject to the scheme unless that sum is reasonably required for the purposes of paying for the refurbishment, repair, extension or redevelopment of the building or group of adjacent or contiguous buildings forming part of the property subject to the scheme or any part of any such building or buildings or otherwise in connection with the efficient management of that building or those buildings or is borrowed in order to repay any sum so borrowed; and\n(b) limit the total amount of all sums borrowed and not repaid to an amount which, except where sums are borrowed to finance work which may reasonably be regarded as being essential to carry out as a matter of urgency in order to protect the fabric of the building or the group of adjacent or contiguous buildings forming part of the property subject to the scheme or to protect the land forming part of that property, is not greater, at the time of borrowing, than three times the annual rental payable to the operator by the occupants of the building or the group of adjacent or contiguous buildings at that time.\n(3) The conditions specified in this paragraph are that the terms of a corporate based scheme must be such that–\n(a) the total amount which may be borrowed through loans repayable out of the property subject to the scheme is limited so that, except in a case in which the sum is borrowed in order to repay other sums borrowed, it may not exceed 75%, or such lesser percentage as may be specified in the documents constituting the scheme, of the amount which is stated in what, at the time a sum is borrowed, is the most recent report made to the operator by a qualified valuer to be the amount which, in the opinion of the valuer, represents what would be the current open market value of the interest or interests which the operator has in the land and the building or group of adjacent or contiguous buildings forming part of the property subject to the scheme if no rent were payable by the operator in respect of that interest or such of those interests in respect of which rent is payable; and\n(b) any document required to be published by virtue of regulations made under section 76(4) to (7) of the Act which contain provisions of the kind described in section 76(7) specifies the limit then specified in the documents constituting the scheme as the limit on the amounts which may be borrowed through loans repayable out of the property subject to the scheme.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1989/28/regulation/19",
    "retrieved_at": "2026-10-29T15:51:28.444916+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}