Introduction and purpose
1.1
Part 7 of the Housing (Scotland) Act 2010 (the Act) sets out the action to be taken in the event of a registered social landlord becoming, or being at risk of becoming, insolvent.
1.2
Section 73(1) of the Act requires specified persons to notify the Scottish Housing Regulator before, and as soon reasonably practicable after, taking specified steps towards the insolvency of a registered social landlord. The specified steps include a step to enforce a security over a registered social landlord's land. The specified steps include:
(a) a step to enforce a security over a registered social landlord's land;
(b) presenting a petition for the winding up of a registered social landlord;
(c) notice being given of the proposal of a resolution for the winding up of a registered social landlord;
(d) applying for, or making, an administration order in respect of of registered social landlord which is a registered company; and
(e) appointing an administrator in respect of a registered social landlord which is a registered company.
1.3
Section 73(2) of the Act provides that the Scottish Housing Regulator can determine what is meant by a "step to enforce a security over a registered social landlord’s land" for the purposes of Part 7.
Determination of what is meant by a step to enforce a security over a Registered Social Landlord's land
(1) Any formal step, whether or not in terms of any statutory provision, taken by a person with a view to enforcing a security over a registered social landlord’s land.
(2) A step referred to in (1) above may include, but is not limited to, the following:
(a) The issuing of any demand for payment or notice of default in terms of any agreement with the registered social landlord or in terms of the security itself;
(b) The taking of any step required in terms of Part II of the Conveyancing and Feudal Reform (Scotland) Act 1970 for the enforcement of rights under a standard security;
(c) The taking of any step required in terms of Schedule B1 to the Insolvency Act 1986 for the appointment of an administrator to the registered social landlord;
(d) The taking of any step required in terms of the Insolvency Act 1986 for the appointment of a receiver or administrative receiver over property of the registered social landlord;
(e) The intimation of any assignation of rents or other receipts arising from land to the party from whom the rents or other receipts are due; or
(f) The taking of any step required in terms of the Insolvency Act 1986 for the appointment of a liquidator to the registered social landlord.
Note: This guidance has been issued under section 73 of the Act.