HC Deb 25 July 1990 vol 177 cc557-8

'.—(1) In section (Tying-in arrangements in connection with residential property loans) "controlled services" means any services of a description prescribed by order made by the Secretary of State.

(2) The order may, in particular, prescribe any description of—

  1. (a) banking, insurance, investment, trusteeship, executorship or other financial services;
  2. (b) services relating to the acquisition, valuation, surveying or disposal of property;
  3. (c) conveyancing services; or
  4. (d) removal services.

(3) Where a lender enters into—

  1. (a) an agreement for the provision to a borrower of a residential property loan; and
  2. (b) a separate agreement with the borrower for the provision to him of a controlled service,

those agreements shall be treated, for the purposes of section (Tying-in arrangements in connection with residential property loans), as a single agreement.

(4) Subsection (3) does not apply with respect to any agreement of a kind mentioned in paragraph (b) of that subsection if the lender proves—

  1. (a) that it was not connected with the transaction in respect of which, or purpose for which, the borrower required the residential property loan; or
  2. (b) where it was so connected, that he did not know, and had no reasonable cause to know, that it was.

(5) For the purposes of section (Tying-in arrangements in connection with residential property loans)(1), the Secretary of State may by order specify—

  1. (a) the circumstances in which land is to be treated as being for a person's residential use; and
  2. (b) who are to be treated as a person's dependants.

(6) For the purposes of section (Tying-in arrangements in connection with residential property loans), this section and section (Tying-in: offences)—

  1. (a) where the lender is a member of a group of companies, the lender and all the other members of the group shall be treated as one; and
  2. (b) where the lender derives any financial benefit from the provision of a controlled service by any other person the lender shall be treated as providing that service.

(7) In subsection (6), "a group of companies" means a holding company and its subsidiaries within the meaning of section 736 of the Companies Act 1985.

(8) The Secretary of State may by order provide that, for such purposes as may be prescribed by the order, paragraph (a) or (b) of subsection (6) shall not have effect.

(9) For the purposes of section (Tying-in arrangements in connection with residential property loans)—

(10) In relation to land in Scotland—

  1. (a) "conveyancing services" has the same meaning as in the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990; and
  2. (b) the reference in section (Tying-in arrangements in connection with residential property loans)(1) to a loan being secured on land shall be read as a reference to its being secured over land by a standard security.

(11) Before making any order or regulations under section (Tying-in arrangements in connection with residential property loans) or this section the Secretary of State shall consult the Director and such other persons as he considers appropriate.'.—[The Solicitor-General.]

Brought up, read the First and Second time, and added to the Bill.

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