# Renting Homes (Fees, Discrimination etc.) (Wales) Act 2019, Paragraph 6


(1) A payment that is required, under a standard occupation contract, to be made in the event of a default by the contract-holder is a permitted payment, but this is subject to sub-paragraph (3).
(2) In this paragraph, “default” means—
(a) a failure by the contract-holder to make a payment by the due date to the landlord, or
(b) a breach by the contract-holder of a term of the contract.
(3) In the case of a default to which sub-paragraph (4) applies, if the amount of a payment required in the event of the default exceeds the prescribed limit, the amount of the excess is a prohibited payment.
(4) This sub-paragraph applies to—
(a) a failure by the contract-holder to make a payment of rent by the due date to the landlord;
(b) any additional description of default which is specified by regulations.
(5) In sub-paragraph (3), the “prescribed limit” means a limit specified by, or determined in accordance with, regulations.

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Source: https://www.legislation.gov.uk/anaw/2019/2/schedule/1/paragraph/6 (the official version)
Page: https://openlegislation.uk/renting-homes-fees-discrimination-etc-wales-act-2019/schedule-1/paragraph-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.