Schedule 7: Special Measures Paragraph 6: Payments received by special measures manager to be held on trust Effect
Paragraph 6 supplements provisions set out in relation to financial management proposals by mandating the way in which Special Measures Managers must hold payments from Accountable Persons.
	Paragraph 6(2) sets out that the payments must be held in one or more trust funds as required.
	Paragraph 6(3) further details that the purpose of the fund is to pay out against any relevant expenses related to the order and to, subject to that, to hold any monies on behalf of the Accountable Person or Accountable Persons.
	Paragraph 6(4) provides that any remaining fund or funds following the payment of relevant expenses under a special measures order are to be distributed to the relevant Accountable Person or Persons. If there are multiple Accountable Persons , this subparagraph provides for distribution of the residue of the funds in accordance with any agreement in writing or otherwise as per the directions of the Tribunal.
	Paragraph 6(5) states that the Regulator or the Accountable Person or the Special Measures Manager for the building will have the ability to apply for a direction, in the absence of agreement by all the Accountable Persons, on the re-distribution of the residual funds.