Section 47G Ranking of arresting creditor of demise charterer in sequestration or winding up of ownerF1

Scotland

(1)

This section applies where—

(a)

a ship is arrested on the dependence of an admiralty action against the demise charterer of it; and

(b)

at any time after the arrestment is executed—

(i)

the owner of the ship's estate is sequestrated; or

(ii)

where the owner is a company, it is wound up.

(2)

The creditor who executed the arrestment is entitled to rank on the proceeds of any sale of the ship resulting from the sequestration or, as the case may be, winding up.

(F23)

Subsections (6) to (8) of section 24 of the Bankruptcy (Scotland) Act 2016 (further provision as regards the effect of sequestration on diligence) and, in so far as applying and modifying those subsections, section 185(1)(a) and (2) of the Insolvency Act 1986 (application of sequestration provisions relating to diligence on winding up) shall apply to such an arrestment as they apply to any other arrestment.

Annotations

Textual amendments

F1: Ss. 47E-47H and preceding cross-heading inserted (1.7.2010) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 213, 227(3), Sch. 4 para. 12 (with s. 223); S.S.I. 2010/249, art. 2
F2: S. 47G(3) substituted (30.11.2016) by Bankruptcy (Scotland) Act 2016 (asp 21), s. 237(2), sch. 8 para. 4 (with ss. 232, 234(3), 235, 236); S.S.I. 2016/294, reg. 2

Notes on Part V

Modifications

C1: Part V extended, with modifications, by Hovercraft Act 1968 (c. 59), s. 2