The London Authorities (Transfer of Housing Estates etc.) (No. 1) Order 1972

Terms of transfer of housing accommodation

12.—(1) A transferee authority shall make payments to the Greater London Council in accordance with the provisions of Part I of Schedule 1 to this order.

(2) The Greater London Council shall pay to a transferee authority sums calculated in accordance with the provisions of Part II of the said Schedule.

(3) The Greater London Council shall discharge the liabilities described in Part III of the said Schedule.

13.—(1) In respect of those properties described in paragraphs 1(a) of the Parts of the deposited Schedule liability for any payments under the terms of a contract (other than in respect of works of repair or minor improvement) incurred before the relevant date and which, but for the transfer of the estate under article 3, would have fallen to be met by the Greater London Council on or after the relevant date, shall be met by the transferee authority.

(2) In respect of those properties described in paragraphs 1(b) of the Parts of the deposited Schedule liability for any payments. (other than in respect of works of repair or minor improvement) falling to be met by the Greater London Council after the payment of the capital sum or sums referred to in paragraph 2 of Part I of Schedule 1 to this order, shall fall on the transferee authority, and such payments shall include any loss or expense incurred by the Greater London Council which has been occasioned by—

(a)the bankruptcy of a contractor, the making of a composition or arrangement with the creditors of such contractor, the making of a winding up order in respect of the contractor's business or undertaking, the passing of a resolution for voluntary winding up such business or undertaking or the appointment of a receiver or manager of such business or undertaking; or

(b)the determination by the transferee authority of the employment of a contractor; or

(c)the requirement by an architect or other nominated person, whether or not at the request of the transferee authority, of any alteration or modification of the design, quality or quantity of any work of construction.

(3) Notwithstanding the ultimate liability of the Greater London Council or the transferee authority, as the case may be, in consequence of the transfer of properties under article 3, to meet payments to a contractor under the terms of a contract where on or after the relevant date payments fall due, such payments shall be made in the first instance by the Greater London Council.