Regulation 12 Contracts: prohibition and obligations

A restricted person is prohibited from exercising the rights of that person comprised in, or derived under, a managed contract or a new contract.

Paragraph (3) applies where a relevant party to a managed contract owes, or may owe, an obligation under the contract for the benefit of the restricted person.

Where this paragraph applies, during the rights period the obligation is owed by the relevant party to the Secretary of State acting on behalf of the restricted person and is not owed directly to the restricted person.

During the management period, a relevant party to a new contract owes any obligation of that party under that contract to the Secretary of State acting on behalf of the restricted person and not directly to the restricted person.

In this regulation, “relevant party” means a party to a contract other than the restricted person.