148Amendment of recurrent charges

148 Amendment of recurrent charges (1) A village contract may provide that any recurrent charges payable under the contract— (a) are to be amended at stated intervals (or on stated dates) according to a fixed formula; or Example—fixed formula in proportion to variations in the Consumer Price Index (b) may be amended otherwise than according to a fixed formula. (2) If a village contract provides for any recurrent charges payable under the contract to be amended otherwise than according to a fixed formula— (a) the recurrent charges must not be amended more than once in a financial year; and (b) any subsequent amendment within that period has no effect. (3) A village contract must not provide for more than 1 method of amending the recurrent charges payable under the contract.

(4) If a village contract provides for more than 1 method of amending recurrent charges, the method that results in the lowest increase in recurrent charges is the applicable method.