HC Deb 09 February 1993 vol 218 c950

Amendment made: No. 85, in page 103, line 13, leave out 'to (5)' and insert 'and (4)'.

No. 86, in page 103, line 18, leave out from beginning to end of line 7 on page 104 and insert—

'(3) The following, namely—

  1. (a) any advance which is made otherwise than for the purpose mentioned in subsection (2) and is secured by a legal charge having priority to the mortgage, and
  2. (b) any further advance which is so secured,
shall rank in priority to the mortgage if, and only if, the landlord by written notice served on the institution concerned gives its consent; and the landlord shall so give its consent if the purpose of the advance or further advance is an approved purpose.

(4) The landlord may at any time by written notice served on an approved lending institution postpone the mortgage to any advance or further advance which—

  1. (a) is made to the tenant by that institution, and
  2. (b) is secured by a legal charge not having priority to the mortgage:
and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.'

No. 87, in page 104, line 17, at end insert—

'(6A) The approved purposes for the purposes of this section are—

  1. (a) to enable the tenant to make an interim or final payment,
  2. (b) to enable the tenant to defray, or to defray on his behalf, any of the following—
    1. (i) the cost of any works to the dwelling-house,
    2. (ii) any service charge payable in respect of the dwelling-house for works, whether or not to the dwelling-house, and
    3. (iii) any service charge or other amount payable in respect of the dwelling-house for insurance, whether or not of the dwelling-house, and
  3. (c) to enable the tenant to discharge, or to discharge on his behalf, any of the following—
    1. (i) so much as is still outstanding of any advance or further advance which ranks in priority to the mortgage,
    2. (ii) any arrears of interest on such an advance or further advance, and
    3. (iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance.

(6B) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.'

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