HC Deb 09 February 1993 vol 218 cc952-3

Amendments made: No. 93, in page 119, line 26 [Clause 119], leave out 'to (2C)' and insert 'and (2B)'.

No. 94, in page 119, line 32, leave out from beginning to end of line 18 on page 120 and insert—

'(2A) The following, namely—

  1. (a) any advance which is made otherwise than for the purpose mentioned in sub-paragraph (2)(b) and is secured by a legal charge having priority to the charge taking effect by virtue of this paragraph, and
  2. (b) any further advance which is so secured,
shall rank in priority to that charge if, and only if, the housing association by written notice served on the institution concerned gives its consent; and the housing association shall so give its consent if the purpose of the advance or further advance is an approved purpose.

(2B) The housing association may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this paragraph to any advance or further advance which—

  1. (a) is made to the purchaser by that institution, and
  2. (b) is secured by a legal charge not having priority to that charge;
and the housing association shall serve such a notice if the purpose of the advance or further advance is an approved purpose.".'

No. 95, in page 120, leave out lines 21 and 22 and insert—

'''(5) The approved purposes for the purposes of this paragraph are—

  1. (a) to enable the purchaser to defray, or to defray on his behalf, any of the following—
    1. (i) the cost of any works to the house,
    2. (ii) any service charge payable in respect of the house for works, whether or not to the house, and
      3. 953
    3. (iii) any service charge or other amount payable in respect of the house for insurance, whether or not of the house, and
  2. (b) to enable the purchaser 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 charge taking effect by virtue of this paragraph,
    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;
  3. and in this sub-paragraph 'service charge' has the meaning given by section 621A of the Housing Act 1985.

(6) 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 paragraph.".'—[Mr. Baldry.]

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