Explanatory note

This Order transfers to the Council of the London borough of Richmond-upon-Thames (“Richmond”) a variety of interests, functions, rights and liabilities held by the London Residuary Body in relation to mortgages of residential property.

Part I defines terms and specifies 14th November 1988 as “the transfer date”.

Part II provides for the transfer to Richmond of various interests, functions, rights and liabilities of the Residuary Body. Article 3 confers on the housing authority in whose area the relevant land is situated the Residuary Body’s liability to provide a mortgage under Part V of the Housing Act 1985. Article 4 deals with interest rates.

Part III contains financial provisions. Article 5 provides for the payment by Richmond to the Residuary Body of a sum which reflects the value of the interests transferred, recognising that arrears may have accrued. Article 6 relates to mortgages in respect of which the Residuary Body or its predecessors in title have exercised the mortgagee’s power of sale.

Article 7 provides for the retention by Richmond and the distribution by them to other London housing authorities of amounts which are to be calculated in accordance with Schedule 1. Article 7(4) provides for the recovery by Richmond of expenditure associated with the Order if Richmond’s receipts are insufficient for the purpose. Article 8 provides for additions to the net capital receipts of London housing authorities in accordance with Schedule 2 on the basis of the percentages listed in Schedule 3. Article 9 requires an authority which receives capital sums by virtue of article 7 to apply the money for the redemption of debt or for other capital purposes. Article 10 enables Richmond to disregard for prescribed expenditure purposes certain expenditure which they are required to incur as a consequence of the Order.

Part IV prescribes the administrative arrangements that apply to the distribution of cash and additional capital spending power and makes provision for continuity. Article 11 requires Richmond to notify the recipient councils and the Secretary of State of its estimates of the amounts available for distribution or retention and of the amount actually distributed or retained. Article 12 deals with continuity in the exercise of functions transferred by the Order.