23.3.1 Where the Authority elects to take possession of the Assets in accordance with Section 20.2.3 (i.e. where the Assets have no alternative use), the Contract may provide that the Authority pays a certain proportion of each Unitary Charge during the last few years of the Contract into a secured retention fund 402 to ensure that it can call on sufficient funds to carry out any maintenance identified as necessary by the survey. The period for and the size of payments into the retention fund should be set on a project specific basis, by reference to the amount likely to be needed to rectify defects in the assets 403
23.3.2 If the Contractor carries out any maintenance identified as necessary by the survey, it can be reimbursed from the retention fund. Otherwise, the Authority can use such funds itself to carry out necessary maintenance. If the amount retained is insufficient to cover all required maintenance, the Authority will have to recover the balance from the Contractor as a debt. Any balance remaining in the fund belongs to the Contractor and should be paid to the Contractor together with accrued interest.
_________________________________________________________________
402 This may be achieved by establishing the account in the sole name of the Authority or charging the account to the Authority.
403 See footnote 399 above.