Regulation 10 Property consisting of financial reservesI1

On the reorganisation date the financial reserves F1, or such proportion of the financial reserves as may be agreed between the successor councils, shall vest in the successor council nominated by the Secretary of State for the purposes of this regulation (the “nominated council”) on trust for itself and the other successor councils concerned.

Where an agreement has been made between the successor councils under paragraph (1) above for a proportion of the financial reserves to vest in the nominated council on trust, the remainder of the financial reserves shall transfer to the successor councils on the reorganisation date in such proportions as may be agreed between those councils.

Within three months of the reorganisation date, or such longer period as may be agreed between the successor councils concerned before the end of that three-month period, the nominated council shall divide the financial reserves F3, or such proportion of the financial reserves as are held on trust by agreement between the successor councils under paragraph (1), between itself and the other successor councils concerned in such proportion as may be agreed by all the successor councils concerned or, failing such agreement, as is determined by such person as the Secretary of State shall appoint.

The nominated council shall, as soon as practicable after the other successor councils’ shares have been agreed or determined, transfer the shares so agreed or determined; and the trust created by paragraph (1) shall cease as soon as the transfer has been completed.

In this regulation “the successor councils concerned” means those councils that are the successor councils to the predecessor council to which the financial reserves relate.