Greater London Authority Bill - continued        House of Lords
PART IV, TRANSPORT - continued

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Key system assets
Key system assets.     170. - (1) In this Chapter, "key system assets" means-
 
 
    (a) any property, rights or liabilities which are, or are of a description, designated by the relevant authority as key system assets in a PPP agreement as originally made; and
 
    (b) any property, rights or liabilities which are designated, or are of a description designated, by the relevant authority after the making of a PPP agreement as key system assets in accordance with the terms of, or by an amendment made to, the PPP agreement,
  but does not include any property, rights or liabilities which, in accordance with the terms of, or by an amendment made to, the PPP agreement, have for the time being ceased to be designated as key system assets.
 
      (2) No rights or liabilities under contracts of employment shall be designated as key system assets.
 
Register of key system assets.     171. - (1) The relevant authority shall keep a register of all key system assets for the time being.
 
      (2) The register shall state-
 
 
    (a) the date on which any designation of a particular key system asset, or of a description of key system assets, was made; and
 
    (b) sufficient details of any particular key system asset, or any description of key system assets, designated as such to enable the key system assets to be identified.
      (3) The register shall be available for inspection by the public free of charge at all reasonable hours.
 
      (4) A person inspecting the register may make copies of, or of extracts from, the register.
 
Related third party agreements.     172. - (1) Where a PPP agreement is or has been entered into, the powers of the relevant authority include power to enter into and carry out other agreements with other persons in connection with the PPP agreement, whether or not there is any term in the PPP agreement relating to such other agreements.
 
      (2) Where-
 
 
    (a) a PPP agreement is or has been entered into, and
 
    (b) the PPP company or the relevant authority, or a subsidiary of the PPP company or relevant authority, enters into arrangements with a third party-
 
      (i) which do not constitute a PPP agreement, but
 
      (ii) which involve the provision of property or rights for use for the purposes of or otherwise in connection with the PPP agreement,
 
    subsection (3) below applies.
      (3) Where this subsection applies, the relevant authority, or a subsidiary of the relevant authority, may enter into an agreement with the third party for the purpose of enabling the property or rights in question to be designated as, and to be, key system assets as if-
 
 
    (a) the agreement between the relevant authority or subsidiary and the third party were a PPP agreement, and
 
    (b) the third party were the PPP company under that agreement.
Protection of key system assets.     173. - (1) If and to the extent that key system assets are property or rights, a PPP company shall not, without the consent of the relevant authority,-
 
 
    (a) transfer or agree to transfer, or create or agree to create any security over, any of those key system assets or any interest in, or right over, any of those key system assets; or
 
    (b) create or extinguish, or agree to create or extinguish, any interest in, or right over, any of those key system assets.
      (2) If and to the extent that key system assets are liabilities, a PPP company shall not, without the consent of the relevant authority, enter into any agreement under which any such liability is released or discharged or transferred to some other person.
 
      (3) Any transaction which is entered into in contravention of subsection (1) or (2) above shall be void.
 
      (4) No execution or other legal process may be commenced or continued, and no distress may be levied, against any property which is, or rights which are, key system assets.
 
      (5) Where a PPP agreement makes provision for the transfer to a relevant body on the termination of the agreement-
 
 
    (a) of any shares in a company which, immediately before the termination of the agreement, is a PPP company, or
 
    (b) of any property, rights or liabilities which, immediately before the termination of the agreement, are key system assets,
  the relevant authority shall ensure that the PPP agreement includes provision specifying, or providing for the determination of, the amounts which are to be paid in respect of those shares or key system assets.
 
      (6) In this section "security" has the meaning given by section 248(b) of the Insolvency Act 1986.
 
 
Land
PPP leases.     174. - (1) In this Chapter "PPP lease" means any lease-
 
 
    (a) which constitutes a PPP agreement;
 
    (b) which is entered into in accordance with a PPP agreement; or
 
    (c) which is designated as a PPP lease.
      (2) An instrument containing a PPP lease must also contain, or have endorsed upon it, a certificate-
 
 
    (a) signed by or on behalf of the parties to the lease,
 
    (b) stating that the instrument contains a PPP lease, and
 
    (c) if the instrument contains provisions other than the PPP lease, reasonably identifying the portion which constitutes the PPP lease.
      (3) Any designation for the purposes of paragraph (c) of subsection (1) above shall be made by the same person, and in the same manner, as if it were a PPP designation.
 
      (4) No enactment or rule of law regulating the rights and obligations of landlords and tenants shall prejudice the operation of an agreement between a relevant body and a PPP company as to the terms on which land which is the subject of a PPP lease is provided for the PPP company's use.
 
      (5) Accordingly no such enactment or rule of law applies in relation to the rights and obligations of the parties to a PPP lease-
 
 
    (a) so as to exclude or modify in any respect any of the rights and obligations of those parties under the terms of the lease, whether with respect to the termination of the tenancy or any other matter;
 
    (b) so as to confer or impose on any party any right or obligation arising out of or connected with anything done or omitted on or in relation to land which is the subject of the lease, in addition to any such right or obligation provided for by the terms of the lease;
 
    (c) so as to restrict the enforcement (whether by action for damages or otherwise) by any party to the lease of any obligation of any other party under the lease.
      (6) In this section "lease" includes an underlease and an agreement for a lease or underlease.
 
Land registration and PPP leases.     175. - (1) The Land Registration Act 1925 shall be amended in accordance with the following provisions of this section.
 
      (2) In section 3 (interpretation) after paragraph (xviii) there shall be inserted-
 
 
    "(xviiia) "PPP lease" has the same meaning as in Chapter VI of Part IV of the Greater London Authority Act 1999 (public-private partnership agreements)."
      (3) In section 8(2) (restriction on registering leasehold land held under a lease containing a prohibition or restriction on dealings inter vivos) at the beginning there shall be inserted "Leasehold land held under a PPP lease shall not be registered under this Act; and, subject to that,".
 
      (4) In section 19 (registration of disposition of freeholds) in paragraph (a) of the proviso to subsection (2) (exception for leases not exceeding twenty-one years) after "twenty-one years" there shall be inserted "or of a PPP lease".
 
      (5) In section 22 (registration of dispositions of leaseholds) in paragraph (a) of the proviso to subsection (2) (exception for underleases not exceeding twenty-one years) after "twenty-one years" there shall be inserted "or of an underlease which is a PPP lease".
 
      (6) Any interest in land consisting of a PPP lease shall, unless registered or otherwise entered on the register, be an overriding interest for the purposes of the Land Registration Act 1925; but the registrar shall not be required by virtue of section 70(2) or (3) of that Act to enter any note or notice of any such lease, or of any claim to any such lease, in the register.
 
      (7) Accordingly, in section 70 (overriding interests)-
 
 
    (a) in subsection (1), after paragraph (k) there shall be inserted the following paragraph-
 
    "(kk) PPP leases;"; and
 
    (b) after subsection (3) there shall be inserted the following subsection-
 
    "(3A) Neither subsection (2) nor subsection (3) of this section shall apply in the case of a PPP lease."
 
      (8) In section 123 (compulsory registration: dispositions to which requirement to register applies) in subsection (6) (interpretation) the word "and" immediately preceding paragraph (c) shall be omitted and at the end of that paragraph there shall be added "; and
 
 
    (d) "term of years absolute" does not include a PPP lease".
 
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