Article 10 Transfer of railways by undertaker

(1)

In this article—

“lease” includes an underlease and “lease”, where used as a verb, shall be construed accordingly;
“the transferee” means any person to whom the railways, or any part of them, are or is leased or sold in accordance with this article; and
“the transferred undertaking” means so much of the railways as is leased or sold in accordance with this article.

(2)

The undertaker may, with the consent of the Secretary of State—

(a)

lease the railways, or any part of them, to any person; or

(b)

sell the railways, or any part of them, to any person,

on such terms and conditions as may be agreed between the undertaker and the transferee.

(3)

Paragraph (2) shall apply to the existing railways with effect from the date on which they are transferred to the undertaker under article 9 (transfer of railways to undertaker).

(4)

Except as may be otherwise provided in this Order—

(a)

the transferred undertaking shall continue to be subject to all statutory or other provisions applicable to the transferred undertaking at the date of the lease or sale (in so far as the those provisions are still subsisting and capable of taking effect); and

(b)

the transferee shall, to the exclusion of the undertaker—

(i)

be entitled to the benefit of, and to exercise, all rights, powers and privileges applicable to the transferred undertaking; and

(ii)

be subject to all obligations, statutory or otherwise, relating to the transferred undertaking (in so far as those provisions are still subsisting and capable of taking effect) to the intent that the undertaker shall be released from all such obligations.

(5)

Paragraph (4) shall have effect during the term of any lease granted under paragraph (2)(a) and from the operative date of any sale under paragraph (2)(b).