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Rule 18.8 Insolvency or death of cautioner or guarantorF1I1

Scotland

(1)

This rule applies where caution has been found by bond of caution or security has been given by guarantee.

(2)

Where one of the events specified in paragraph (3) occurs, the party entitled to benefit from the caution or guarantee may apply to the Court by motion for further caution to be found or further security to be given.

(3)

The events are that the cautioner or guarantor—

(a)

becomes apparently insolvent within the meaning of F2section 16 of the Bankruptcy (Scotland) Act 2016;

(b)

calls a meeting of the cautioner or guarantor’s creditors to consider the state of that person’s affairs;

(c)

dies unrepresented;

(d)

is a company and—

(i)

an administration, bank administration or building society special administration order has been made in respect of it;

(ii)

a winding up, bank insolvency or building society insolvency order has been made in respect of it;

(iii)

a resolution for its voluntary winding up has been passed;

(iv)

a receiver of all or any part of its undertaking has been appointed;

(v)

a voluntary arrangement within the meaning of section 1(1) of the Insolvency Act 1986f1 has been approved under Part I of that Act.

Annotations

Textual amendments

F1

Rules revoked (with saving in rule 34.3) (6.1.2022) by Act of Sederunt (Sheriff Appeal Court Rules) 2021 (S.S.I. 2021/468), rules 1.1(2), 34.1 (with rules 1.2, 34.3)

F2

Words in rule 18.8(3)(a) substituted (30.11.2016) by Act of Sederunt (Rules of the Court of Session, Sheriff Appeal Court Rules and Sheriff Court Rules Amendment) (Bankruptcy (Scotland) Act 2016) 2016 (S.S.I. 2016/312), paras. 1(2), 7(2)

Commencement

I1

Rule 18.8 in force at 1.1.2016, see rule 1.1(2)

Footnotes

f1

1986 c. 45. Section 1(1) was amended by the Enterprise Act 2002 (c. 40), Schedule 17, paragraph 10.