Schedule 11 to the Housing Act 1988 (c. 50) (provisions applicable to certain disposals of houses) is amended as follows.
In paragraph 1(2) for the words from "to pay to the housing action trust" to the end of the sub-paragraph substitute " to the following effect. "
After paragraph 1(2) insert—
The amendments made by this section do not apply in any case where—
before the day on which this section comes into force.
Subsection (6), however, applies in any such case if the first relevant disposal by the purchaser to which the covenant for repayment of discount applies takes place on or after the day on which this section comes into force.
In the following provisions—
any reference (however expressed) to a person being liable to pay an amount to the housing action trust on demand is to be read as a reference to his being liable to pay to the trust so much of that amount (if any) as the trust may demand.
In subsections (5) and (6) "covenant for repayment of discount" means the covenant contained in a conveyance, grant or assignment in accordance with paragraph 1 of Schedule 11 to that Act.