868. Custodial schemes; in general.

The following provisions apply to a custodial scheme1.

The scheme must provide for any landlord2 who receives a tenancy deposit3 in connection with a shorthold tenancy4 to pay an amount equal to the deposit into a designated account held by the scheme administrator5. The designated account must not contain anything other than amounts so paid into it (and any interest accruing on such amounts)6. The scheme administrator may7 retain any interest accruing on such amounts8. The arrangements made for the purpose of safeguarding tenancy deposits9 may, however, provide for any amount paid upon the termination of a tenancy10 to be