Citation and commencement

1. This Order may be cited as the Mortgage Indemnities (Recognised Bodies) Order 1994 and shall come into force on 22nd July 1994.

Specified bodies

2. The following bodies are hereby specified as recognised bodies for the purposes of sections 442(3) and 443 of the Housing Act 1985 (agreements to indemnify mortgages and contributions to mortgage costs)-

(a)Alliance & Leicester Mortgage Loans (No. 2) Limited;

(b)Alliance & Leicester Mortgage Loans (No. 3) Limited;

(c)Alliance & Leicester Mortgage Loans (No. 4) Limited;

(d)Britannia Mortgage Company Number One Limited;

(e)Britannia Mortgage Company Number Two Limited;

(f)Collateralised Mortgage Securities (No. 16) PLC;

(g)Saffron Walden Mortgage Services Limited;

(h)Stroud and Swindon Mortgage Company (No. 2) Limited.

Variation of previous Order

3. The words "(a) Barshelfco No. 15 Limited" shall be omitted from article 2 of the Mortgage Indemnities (Recognised Bodies) Order 1991(4).

Explanatory Note

(This note is not part of the Order)

This Order specifies eight additional bodies as recognised bodies for the purposes of sections 442 and 443 of the Housing Act 1985 (other bodies have been specified by previous Orders) and omits Barshelfco (No. 15) Limited, at its request, from a list of bodies specified as recognised bodies by a previous Order.

Section 442 provides for a local authority, with the approval of the Secretary of State, to enter into agreements with a recognised body to indemnify such a body against any loss or expense arising from an advance made by it on the security of a house or flat bought from a local authority, a new town corporatioin, an urban development corporation, the Housing Corporation, Housing for Wales, Scottish Homes or a registered housing association.

Section 443 provides for a local authority to contribute towards costs incurred in connection with a legal charge to secure such an advance.