This section applies to regulations under section 450A or 450B (regulations conferring right to loan, or power to make loan, in respect of service charges).
The regulations may provide that the right or, as the case may be, the power does not arise in the case of any prescribed description of landlord.
The regulations shall provide that the loan—
in the case of a loan made in pursuance of regulations under section 450A (the right to a loan), shall be on such terms as may be prescribed, and
in the case of a loan made by virtue of regulations under section 450B (power to make loan), shall be on such terms as the lender may determine subject to any provision made by the regulations;
and shall, in either case, be secured by a mortgage of the flat in question, but may be made whether or not the flat is adequate security for the loan.
The regulations may—
in a case where a rate of interest is payable on some or all of the loan, either prescribe the rate or provide that the rate shall be such reasonable rate as may be determined by the lender or, where the lender is a local authority, provide that Schedule 16 applies (local authority mortgage interest rates);
in a case where amounts calculated by reference to the market value of the flat are payable instead of (or as well as) interest, make provision about calculating the market value of the flat (including imposing charges for the services of district valuers);
as regards administrative expenses of the lender in connection with a loan, provide that the lender may charge such expenses to the borrower, to the extent that they do not exceed such amount as may be prescribed, and that the expenses so charged may, at the option of the borrower in the case of a loan under section 450A and at the option of the lender in the case of a loan under section 450B, be added to the amount of the loan.
The regulations may apply whenever the lease in question was granted or assigned and whenever the service charge in question became payable.
The regulations—
may make different provision for different cases or descriptions of case, including different provision for different areas;
may contain such incidental, supplementary and transitional provisions as the Secretary of State considers appropriate; and
shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.