Changes need to be made to the definition of a ‘clearing bank’ in the Standard Conditions of Sale and the Standard Commercial Property Conditions, now that the Bank of England have taken over direct delivery of the Clearing House Automated Payment System (CHAPS) service, the Law Society says.

In Standard Conditions of Sale (5th Edition) condition 1.1.1 (b) and in Standard Commercial Property Conditions (2nd and 3rd Editions) condition 1.1.1 (c) the definition of a ‘clearing bank’ is no longer correct.