Section 41 Suspension of obligationsI1

United Kingdom

(1)

The Secretary of State may suspend obligations to make a payment, or delivery, under a contract where one of the parties to the contract is a steel undertaking in respect of which the Secretary of State is exercising a transfer power.

(2)

A suspension imposed under subsection (1)—

(a)

begins immediately after the regulations providing for the suspension are laid before Parliament,

(b)

must end no later than midnight at the end of the 7th business day following the day on which the regulations are laid before Parliament, and

(c)

suspends all obligations to make a payment or delivery under the contract in question, whether the obligation concerned is that of the steel undertaking in respect of which regulations made under a transfer power have effect or of any other party to the contract.

(3)

Where a payment or delivery under the contract concerned first fell due within the period of the suspension, that payment or delivery is treated as being due immediately on the expiry of the suspension.

(4)

The power under subsection (1) must be exercised by way of provision in share transfer regulations or property transfer regulations.

(5)

In this section and sections 42 and 43, “business day” means any day other than a Saturday, a Sunday, or a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.

Annotations

Commencement

I1: S. 41 in force at Royal Assent, see s. 63(1)