PART 7MISCELLANEOUS AND GENERAL

Guarantees in respect of payment of compensation

53.—(1) The undertaker must not exercise the powers conferred by the provisions referred to in paragraph (2) in relation to any land comprised in part of the authorised development unless it has first put in place for that land either—

(a)a guarantee, the form and amount of which has been approved by the Secretary of State in respect of the liabilities of the undertaker to pay compensation under this Order in respect of the exercise of the relevant power in relation to that land; or

(b)an alternative form of security, the form and amount of which has been approved by the Secretary of State in respect of the liabilities of the undertaker to pay compensation under this Order in respect of the exercise of the relevant power in relation to that land.

(2) The provisions are—

• article 24 (compulsory acquisition of land);

• article 27 (compulsory acquisition of rights and imposition of restrictive covenants);

• article 28 (private rights over land);

• article 31 (acquisition of subsoil or airspace only);

• article 32 (rights under or over streets);

• article 33 (temporary use of land for carrying out the authorised development);

• article 34 (temporary use of land for maintaining the authorised development); and

• article 36 (statutory undertakers).

(3) A guarantee or alternative form of security given in respect of any liability of the undertaker to pay compensation under this Order is to be treated as enforceable against the guarantor or person providing the alternative form of security by any person to whom such compensation is payable and must be in such a form as to be capable of enforcement by such a person.

(4) Nothing in this article requires a guarantee or alternative form of security to be in place for more than 15 years after the date on which the relevant power is exercised.