The Health Act 1999 (Fund-Holding Practices) (Transfer of Assets, Savings, Rights and Liabilities and Transitional Provisions) (Scotland) Order 1999

Transfer of rights and liabilities

4.—(1) Subject to the following paragraphs of this article—

(a)any rights to which the former members of a residual fund-holding practice were entitled, or which were enforceable by them, immediately before 1st October 1999; and

(b)any liabilities to which such former members were subject, or which were enforceable against them immediately before that date,

and which were acquired or incurred in connection with the application of an allotted sum, shall on that date be transferred to or, as the case may be, shall on and after that date be enforceable by or against, the Board.

(2) Paragraph (1) shall not apply to any rights or liabilities incurred in connection with—

(a)the spending of savings in accordance with regulation 22 of the 1997 Regulations as that regulation had effect on the day the savings were spent; or

(b)the application of the allotted sum for the purpose of—

(i)the purchase of goods and materials for the use of the former fund-holding practice, including support and maintenance contracts relating to computers or office equipment;

(ii)payments under leasing and hire purchase agreements for the purchase of goods and materials, including equipment.

(3) Paragraph (1) shall not apply to rights or liabilities relating to any contract of employment.

(4) Nothing in this article shall affect the operation of the Transfer of Undertakings (Protection of Employment) Regulations 1981(1).