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The Lord Chancellor moved Amendments Nos. 65 to 68:


Page 9, line 5, after ("so") insert ("(whether expressly or otherwise)").
Page 9, line 7, leave out subsection (2).
Page 9, line 10, leave out subsection (3) and insert:
("(3) To the extent that an agreement relating to a tenancy constitutes a covenant (whether absolute or qualified) against the assignment, or parting with the possession, of the premises demised by the tenancy or any part of them—
(a) the agreement is not void by virtue of subsection (1) by reason only of the fact that as such the covenant prohibits or restricts any such assignment or parting with possession; but
(b) paragraph (a) above does not otherwise affect the operation of that subsection in relation to the agreement (and in particular does not preclude its application to the agreement to the extent that it purports to regulate the giving of, or the making of any application for, consent to any such assignment or parting with possession).").
Page 9, line 13, at end insert:
("( ) In accordance with section 12(1) nothing in this section applies to any agreement to the extent that it is an authorised guarantee agreement; but (without prejudice to the generality of subsection (1) above) an agreement is void to the extent that it is one falling within section 12(4) (a) or (b).").

On Question, amendments agreed to.

Clause 16, as amended, agreed to.

Clause 17 agreed to.

Clause 18 [Notices for the purposes of the Act]:

The Lord Chancellor moved Amendment No 69:


Page 9, line 35, at end insert ("and the options available to the person on whom it is served").

The noble and and learned Lord said: Clause 18 of the Bill makes provision for notices which are required for Clauses 6, 9 and 13. It provides for the form of the notices to be prescribed by regulations made by statutory instrument, specifies certain matters which the form of notices thus prescribed must contain and provides that the sanction for serving a notice which is not substantially in the form prescribed (so that minor departures will not be fatal) is that the notice shall be ineffective for its purpose. Service of notices is to be in accordance with the very well settled provisions of Section 23 of the Landlord and Tenant Act 1927. Amendments Nos. 69 to 73 are consequential on earlier changes made to Clauses 6, 9 and 13, and with the leave of the Committee, perhaps I may now speak to those amendments.

Amendment No. 69 is consequential on the changes to Clauses 6 and 9 which allow the recipient of the notice more options than was previously the case. The amendment requires the form of notice under those clauses to set out for the recipient's benefit what his options are. The recipient will therefore know that he need not simply stay quiet but can agree to save everyone's time and that he is not committed if he registers an objection but may withdraw the objection to save time and costs if he changes his mind.

Amendment No. 70 requires a notice under Clause 13 to include an explanation of its significance to the former tenant or guarantor on the same basis as for notices under

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Clauses 6 and 9. Indeed, it may be even more important for a person receiving a notice under Clause 13 to know what it signifies than it is for the recipient of a notice under Clauses 6 or 9.

Amendments Nos. 71 and 72 amend subsection (3) of Clause 18 so that the sanction of ineffectiveness applies also to notices under Clause 13 which are not substantially in the prescribed form. Amendment No. 73 removes a limitation in subsection (4) of Clause 18 which has become inappropriate in the light of the amendments to Clause 13. I beg to move Amendment No. 69.

On Question, amendment agreed to.

The Lord Chancellor moved Amendments Nos. 70 to 73:


Page 9, line 43, at end insert:
("( ) The regulations shall require any notice served for the purposes of section 13 to include an explanation of the significance of the notice.").
Page 9, line 45, leave out ("or 9(1)") and insert (", 9(1) or 13").
Page 9, line 47, leave out ("or section 9") and insert (", section 9 or section 13").
Page 10, line 2, leave out ("13(2)") and insert ("13").

The noble and learned Lord said: I spoke to Amendments Nos. 70 to 73 inclusive with Amendment No. 69. With the leave of the Committee I beg to move the amendments en bloc.

On Question, amendments agreed to.

Clause 18, as amended, agreed to.

Clause 19 [Interpretation]:

The Lord Chancellor moved Amendment No. 74:


Page 10, line 5, at end insert ("(unless the context otherwise requires)").

The noble and learned Lord said: Clause 19 sets out definitions and provisions for interpretation of the Bill as a whole. A number of these fall to be revised, and some additional ones added, as a consequence of earlier amendments. I have already spoken to some of them, and with the leave of the Committee I believe that it would be appropriate if I were to speak to the remainder as a group.

Amendment No. 74 inserts a general provision qualifying the entire list of definitions so that they do not apply if the context otherwise requires. This enables the definitions themselves to be simpler and clearer.

Amendment No. 77 makes it clear what is meant by "collateral agreement", a term which has an important place in the amendments providing the framework for transmission of covenants to give effect to the Law Commission's recommendations. The definition in particular makes it clear a collateral agreement may be entered into after the creation of the tenancy.

Amendment No. 78 is to be read with Amendment No. 75. It makes it clear that, in accordance with the Law Commission scheme, the term "covenant" is to encompass matters contained in collateral agreements.

Amendment No. 79 introduces a definition for the whole Bill, for the avoidance of doubt, of the terms "landlord" and "tenant" which are used throughout the Bill so often that it might be easy to lose sight of the fact that they have a specific meaning.

21 Jun 1995 : Column 396

Amendment No. 80 restores wording which was originally recommended by the Law Commission: it excludes a mortgage term from the definition of "tenancy" for the purposes of the Bill. The Law Commission's reason for recommending the wording is that it remains possible for there to be a mortgage by demise, and it is inappropriate for there to be any question of the Bill's provisions applying to any such mortgage.

Amendment No. 83 provides a more specific extension of the definition of "landlord" and "tenant" for the purposes of the Bill to put beyond doubt a point which emerged during revision of the Bill and consideration of Clause 10. It introduces a new subsection into Clause 19 which makes it clear that any reference to the landlord or tenant means, where there are joint landlords or tenants, all those who jointly constitute the landlord or tenant, as the case may be. This means that Clause 10, which was intended to cover persons who have failed to secure release and their assignees and the like, and not joint tenants or landlords, will, as intended, have no application as between joint tenants or landlords. I beg to move Amendment No. 74.

On Question, amendment agreed to.

The Lord Chancellor moved Amendments Nos. 75 to 81:


Page 10, line 6, leave out from (""assignment"") to end of line 8 and insert ("includes equitable assignment and in addition (subject to section (Assignments in breach of covenant or by operation of law)) assignment in breach of a covenant of a tenancy or by operation of law;").
Page 10, line 8, at end insert:
(""authorised guarantee agreement" means an agreement which is an authorised guarantee agreement for the purposes of section 12;").
Page 10, line 8, at end insert:
(""collateral agreement", in relation to a tenancy, means any agreement collateral to the tenancy, whether made before or after its creation;").
Page 10, line 10, at end insert (", and references to a covenant (or any description of covenant) of a tenancy include a covenant (or a covenant of that description) contained in a collateral agreement;").
Page 10, line 10, at end insert:
(""landlord" and "tenant", in relation to a tenancy, mean the person for the time being entitled to the reversion expectant on the term of a tenancy and the person so entitled to that term respectively;").
Page 10, line 13, at end insert:
(""new tenancy" means a tenancy which is a new tenancy for the purposes of section 1;").
Page 10, line 18, at end insert:
("but does not include a mortgage term;").

The noble and learned Lord said: I spoke to Amendment No. 75 with Amendment No. 29, to Amendment No. 76 with Amendment No. 53, to Amendments Nos. 77 to 79 with Amendment No. 74, to Amendment No. 80 with Amendment No. 53 and to Amendment No. 81 with Amendment No. 74. With the leave of the Committee, I beg to move Amendments Nos. 75 to 81.

On Question, amendments agreed to.

[Amendment No. 82 not moved.]


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