HC Deb 09 February 1993 vol 218 cc951-2

Amendments made: No. 91, in page 118, line 29 [Clause 118], leave out 'to (2C)' and insert 'and (2B)'.

No. 92, in page 118, line 35, leave out from beginning to end of line 22 on page 119 and insert—

'"(2A) The following, namely—

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

(2B) The local authority may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this section 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 local authority shall serve such a notice if the purpose of the advance or further advance is an approved purpose."

(2) After subsection (4) of that section there shall be inserted the following subsections—

"(5) The approved purposes for the purposes of this section 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. (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 section,
    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.

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

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