Schedule 3:  Horserace Betting Levy Board: Transfer of Property
127.The paragraphs in this Schedule supplement sections 15 and 16.
128.Paragraphs 3 and 4 provide powers to the Levy Board and the Secretary of State to enter into agreements which confer or impose upon them rights or liabilities in respect of anything which has been or is to be transferred by a transfer scheme.
129.Paragraphs 5 to 11 make detailed provision as to the content of a transfer scheme. The purpose of paragraph 5 is to ensure that there is unrestricted power to transfer property, rights and liabilities under the scheme without the need to observe any further formalities.
130.Paragraph 6 provides wide scope to determine which property, rights and liabilities are to be transferred under the scheme and how they are described.
131.Paragraph 7 deals with the possibility that property, rights and liabilities will not exist when the scheme is made but will exist by the time it takes effect. Similarly, under sub-paragraph (b), a scheme may deal with a right which is already in existence but has not yet been transferred to the Levy Board. The purpose of this provision is to ensure that proposed transfers of property, rights and liabilities to the Board do not delay the making of schemes.
132.Paragraph 8 makes provision for the division of property, rights and liabilities. For example, a right held absolutely by the Levy Board may be split between two or more transferees.
133.Paragraph 9 is designed to ensure that rights and liabilities are readily enforceable after the transfer has been effected and provides that new obligations may be created.
134.Paragraph 10 allows a transfer scheme to make provision for third parties to be compensated where the splitting of rights and liabilities results in a reduction in the value of a third party’s property or a right held by him. It is provided that compensation may be payable by a transferee, transferor (i.e. the Board), or the Secretary of State and that any dispute as to liability or the amount of compensation may be subject to arbitration.
135.Paragraph 13 gives a power to the Secretary of State to issue a conclusive certificate of title stating that anything specified in the certificate has vested in a person by virtue of the scheme.
136.Paragraphs 14 and 15 provide powers to the Secretary of State to modify a transfer scheme which has not yet taken effect and, by order, where it has taken effect.
137.Paragraph 16 requires the Secretary of State to consult the Levy Board in relation to a transfer direction and in exercising her powers in respect of a transfer scheme, and paragraph 17 requires the Secretary of State to obtain consent from the transferee in relation to a transfer scheme before approving or making a scheme.
138.Paragraph 18 enables the Secretary of State to direct the Levy Board to prepare accounts in respect of a period ending with the day on which a transfer scheme comes into effect. It is envisaged that where there is a gap between the end of the Levy Board’s last accounting period and a transfer scheme taking effect the Secretary of State may wish to direct the Levy Board to account for its property, rights and liabilities during that gap.