Commentary on Sections Regulation of loans Section 71I Regulated transaction involving unauthorised participant
329.Section 71I sets out what happens where a political party enters into a regulated transaction with an unauthorised participant. These provisions will also apply in the case where a regulated transaction has taken place with an authorised participant, who has later, for whatever reason, ceased to be authorised. They do not apply to loans extant at the time the provisions commence.
330.Subsection (2) provides that a regulated transaction involving an unauthorised participant is void.
331.Subsection (3) requires the political party to repay any moneys received under the transaction.
332.Subsection (3)(a) provides that political party is also required to pay interest on the moneys to be repaid (to prevent the political party from obtaining an interest free loan in the period up until the moneys are repaid). The Secretary of State may set the rate of interest by order.
333.Should the moneys not be repaid, subsection (4) permits the Electoral Commission to apply to court to restore the parties to the transaction to the position they would have been in if the transaction had not taken place (so far as is possible).