Scottish Crown Estate Bill 7 Part 3—Management of Scottish Crown Estate assets (2) Despite subsection (1), the manager may make a relevant transaction for consideration of less than market value (including for no consideration) if the manager is satisfied that the relevant transaction is likely to contribute to the promotion or the improvement in Scotland of— 5 (a) economic development, (b) regeneration, (c) social wellbeing, (d) environmental wellbeing, (e) sustainable development. 10 (3) In deciding whether to make a relevant transaction for consideration of less than market value, the manager must have regard to the likely effect of the transaction on the value of the Scottish Crown Estate as a whole. (4) Subsection (1) does not apply where the manager makes a relevant transaction— (a) for the purpose of complying with an obligation enforceable against the Crown or 15 against the manager, (b) in pursuance of paragraph 3(2) or 4(2) of Part 1 of schedule 4 of the Crown Estate Transfer Scheme 2017 (S.I. 2017/524). 12 Meaning of “market value” (1) In section 11, “market value” means the estimated amount which it would be reasonable 20 to pay in respect of a relevant transaction based on the assumption that the transaction is agreed to— (a) on the day on which the determination of the estimated amount is made, (b) on an arm’s-length basis, (c) after proper marketing, 25 (d) between parties each of whom has acted knowledgeably, prudently and willingly, (e) on a day on which a person other than a manager is offering to make a transaction equivalent to the relevant transaction in relation to an asset which is similar to the asset to which the relevant transaction relates, and (f) where the relevant transaction is a grant of a lease, on appropriate terms of lease. 30 (2) But where a manager enters into an agreement under which a relevant transaction may or is to occur more than 10 years after the day on which the agreement is entered into— (a) subsection (1)(a) does not apply, and (b) the estimated amount is to be determined on the day on which the relevant transaction may or is to occur. 35 (3) In the application of section 11 to a relevant transaction made in pursuance of— (a) an agreement within the meaning of paragraph 15 of Part 3 of schedule 4 of the Crown Estate Transfer Scheme 2017 (S.I. 2017/524), “market value” has the meaning given in that paragraph, (b) an agreement within the meaning of paragraph 25(1) of Part 4 of that schedule, 40 “market value” has the meaning given in that paragraph. 8 Scottish Crown Estate Bill Part 3—Management of Scottish Crown Estate assets (4) The Scottish Ministers may by regulations modify— (a) the definition of “market value” in subsection (1), (b) the application of that definition in subsection (2). (5) In this section, “relevant transaction” is to be construed in accordance with section 5 11(1). 13 Directions about rent and other charges (1) The Scottish Ministers may, in a direction under section 35(1), specify— (a) the amounts that managers may charge— (i) by way of rent for the lease of Scottish Crown Estate assets, 10 (ii) in connection with any other agreement for the use of the assets, or (b) how those amounts are to be calculated. (2) In particular, the Scottish Ministers may specify— (a) minimum and maximum amounts that may be charged, (b) different amounts, or methods of calculating them, for assets of different 15 descriptions. (3) Where a direction made in pursuance of subsection (1) applies to the lease of, or (as the case may be) other agreement for the use of, an asset— (a) section 11 does not apply in relation to the lease or agreement, and (b) the manager of the asset may charge an amount other than an amount specified in, 20 or calculated in accordance with, the direction only with the consent of the Scottish Ministers, and the lease or other agreement is void if entered into without that consent. 14 Maximum period of leases etc. (1) The manager of a Scottish Crown Estate asset may not grant a lease or other right in or 25 over the asset for a period of more than 150 years, and any such lease or other right granted by the manager is void. (2) Subsection (1) does not apply where the manager grants the lease or other right for the purpose of complying with an obligation enforceable against the Crown or against the manager. 30 15 Prohibition on securities The manager of a Scottish Crown Estate asset may not grant a heritable security over the asset, and any such security granted by the manager is void. 16 Investment of money A manager may invest a sum of money— 35 (a) from the manager’s capital account only if it is invested— (i) in the name of the manager, in a heritable security in Scotland or in a security over land in the rest of the United Kingdom, Scottish Crown Estate Bill 9 Part 3—Management of Scottish Crown Estate assets (ii) in the name of the manager, in an interest-bearing account, (iii) in an investment of such other description as the Scottish Ministers may specify in a direction under section 35(1), (b) from the manager’s income account only if it is invested in the name of the 5 manager in an interest-bearing account. 17 Charitable donation (1) A manager may make charitable donations from the manager’s income account. (2) A “charitable donation” is a payment of a sum of money to such person as the manager considers appropriate for a charitable purpose which provides public benefit in Scotland. 10 (3) In subsection (2), “charitable purpose” is to be construed in accordance with section 7(2) of the Charities and Trustee Investment (Scotland) Act 2005. 18 Transparency and accountability (1) A manager must, so far as reasonably practicable, exercise its functions in a way which— 15 (a) is transparent and accountable, and (b) is consistent with any other principle of good governance which appears to the manager to constitute best...