Article 3 Transfer of railway to undertaker

Subject, in the case of Railtrack, to compliance with all relevant conditions of the network licence, the owner may lease the railway or any part of the railway to the undertaker on such terms and conditions as may be agreed between the owner and the undertaker.

Subject, in the case of Railtrack, to compliance with all relevant conditions of the network licence, the owner and the undertaker may enter into and carry into effect agreements providing for the sale to, and vesting in, the undertaker of the railway or any part of the railway on such terms and conditions as may be agreed between the owner and the undertaker.

Except as may be otherwise provided in this Order, as from the transfer date the railway or any part thereof shall continue to be subject to all statutory and other provisions applicable to the railway at that date (insofar as the same are still subsisting and capable of taking effect), and the undertaker shall, to the exclusion of the owner, be entitled to the benefit of, and to exercise, all rights, powers and privileges, and be subject to all obligations statutory or otherwise relating to the railway (insofar as the same are still subsisting and capable of taking effect), to the intent that the owner shall be released from all such obligations.

Paragraph (3) shall have effect during the currency of any lease granted under the provisions of paragraph (1) and from the operative date of any sale under the provisions of paragraph (2).