7.—(1) On 28 October 2020 —(a) | all assets of the transferor Town Council on 27 October 2020 that relate to a transferred area described in the third column of the Second Schedule opposite a transferee Town Council; and | (b) | all liabilities of a transferor Town Council on 27 October 2020 that relate to a transferred area described in the third column of the Second Schedule opposite a transferee Town Council, |
are transferred from the transferor Town Council to the transferee Town Council concerned. |
(2) When any assets or liabilities are transferred under sub‑paragraph (1), the following provisions have effect:(a) | the assets of the transferor Town Council that are the subject of the transfer vest in the transferee Town Council by virtue of that sub‑paragraph and without the need for any further conveyance, transfer, assignment or assurance; | (b) | the liabilities of the transferor Town Council that are the subject of the transfer become by virtue of that sub‑paragraph the liabilities of the transferee Town Council; | (c) | all legal or other proceedings relating to those assets or liabilities that are started before 28 October 2020 by or against the transferor Town Council and pending immediately before that date are taken to be proceedings pending by or against the transferee Town Council; | (d) | any legal or other proceedings relating to those assets or liabilities which could have been started immediately before 28 October 2020 by or against the transferor Town Council may be started by or against the transferee Town Council; | (e) | a judgment or an order of a court or other tribunal obtained before 28 October 2020 by or against the transferor Town Council relating to those assets or liabilities may be enforced by or against the transferee Town Council; | (f) | any document relating to legal or other proceedings relating to those assets or liabilities that has been served on or by a transferor Town Council before 28 October 2020 is taken, where appropriate, to have been served on or by the transferee Town Council; | (g) | any act, matter or thing done or omitted to be done before 28 October 2020 in relation to those assets or liabilities by, to or in respect of the transferor Town Council is (to the extent to which that act, matter or thing has any force or effect) taken to have been done or omitted by, to or in respect of the transferee Town Council; | (h) | a reference in any written law, in any instrument made under any Act, in any contract, agreement, arrangement or undertaking, or in any document of any kind to the transferor Town Council, to the extent to which the reference relates to those assets or liabilities, is taken to be, or includes, a reference to the transferee Town Council. |
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(3) In particular —(a) | all security deposits deposited with the transferor Town Council in relation to any assets or liabilities transferred under sub‑paragraph (1) and not forfeited before 28 October 2020; and | (b) | the benefits of all indemnities, guarantees or warranties given to the transferor Town Council in relation to any assets or liabilities transferred under sub‑paragraph (1) and not discharged before 28 October 2020, |
are, without further assurance, transferred and deemed deposited with or given to the transferee Town Council. |
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(4) The operation of this paragraph does not —(a) | constitute a breach of, or default under, any law or otherwise a civil wrong or criminal wrong; | (b) | constitute a breach of duty of confidence (whether arising by contract, in equity, by custom, or in any other way); | (c) | constitute a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights or liabilities or the disclosure of any information; | (d) | terminate an agreement or fulfil any condition that allows a person to terminate any agreement or obligation, or gives rise to any right or remedy in respect of any agreement or obligation; | (e) | frustrate any contract or cause any contract or instrument to be void or otherwise unenforceable; | (f) | release any surety, other obligor or other obligee wholly or in part from any obligation; or | (g) | constitute an event of breach of, or default under, any contract or other instrument. |
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(5) No attornment to the transferee Town Council by a lessee from a transferor Town Council is required for the purpose of this paragraph. |
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