22Effect of memorial

1. If a memorial is entered under section 21, then, unless all residents of the retirement village have received independent legal advice and at least 90% of those residents have consented in writing, the holder of a security interest or any receiver or liquidator or statutory manager of property comprising the retirement village or of any operator of the village must not exercise any right to—

2. dispose of the retirement village other than as a going concern; or
3. disclaim any occupation right agreement relating to the retirement village as onerous property under section 269 of the Companies Act 1993 or section 117 of the Insolvency Act 2006; or
4. evict any resident or exclude any resident from the use of any facilities or any part of the retirement village to which that resident is ordinarily entitled.

5. Subsection (1) applies whether or not the security interest is registered against the record of title.

6. The holder of the security interest, or any receiver or liquidator or statutory manager of property comprising the retirement village or of an operator of the village, may apply to the High Court for an exemption from any requirement of subsection (1), and that exemption may be granted subject to any conditions that the court considers appropriate.

7. This section does not affect—

8. the exercise of any right conferred on any person under an occupation right agreement (including, without limitation, any right to specified services or any right conferred on the operator of a retirement village to terminate the occupation right of a resident or exclude a resident from the use of any facilities or part of the village, or to reduce or cancel services); or
9. the exercise of any specified right by a person who—
   1. was the holder of a security interest in the retirement village on 31 December 2002 (being a security interest that continues to secure the payment or repayment of all or any part of a sum secured by it on that date, that has not been paid or repaid); and
   2. has not, since that date, obtained any new security interest in the village or agreed to any increase—
      1. in the term of the security interest; or
      2. if the holder offers a credit facility (for example, an overdraft), in the maximum sum secured by that security interest; or
      3. if any other sum is secured by the security interest, in the maximum sum secured by that interest; and
   3. has failed or refused to consent to the registration of the village.

10. In subsection (4)(b), specified right means any right conferred by the security interest referred to in subsection (4)(b)(i) (being a right provided in that security interest as at 31 December 2002).