(1) The appropriate authority may by regulations make provision for the purpose of securing that any non-assignment of receivables term of a relevant contract -

(a) has no effect;

(b) has no effect in relation to persons of a prescribed description;

(c) has effect in relation to persons of a prescribed description only for such purposes as may be prescribed.

(2) A "non-assignment of receivables term" of a contract is a term which prohibits or imposes a condition, or other restriction, on the assignment (or, in Scotland, assignation) by a party to the contract of the right to be paid any amount under the contract or any other contract between the parties.

(3) A contract is a relevant contract if -

(a) it is a contract for goods, services or intangible assets (including intellectual property) which is not an excluded financial services contract, and

(b) at least one of the parties has entered into it in connection with the carrying on of a business.

(4) An "excluded financial services contract" is a contract which -

(a) is for financial services (see section 2) or is a regulated agreement within the meaning of the Consumer Credit Act 1974 (see section 189 of that Act); and