Article 3.37 Order of priority

(1)

The expenses of the education administration are payable in the following order of priority, subject to an order of the court under paragraph (2)—

(a)

expenses properly incurred by the education administrator in performing the education administrator’s functions;

(b)

the cost of any security provided by the education administrator in accordance with the Act or these Rules;

(c)

the costs of the applicant and any other person appearing at the hearing of the application for an education administration order whose costs were allowed by the court;

(d)

any amount payable to a person in respect of assistance in the preparation of a statement of affairs or statement of concurrence;

(e)

any allowance made by order of the court in respect of the costs on an application for release from the obligation to submit a statement of affairs or deliver a statement of concurrence;

(f)

any necessary disbursements by the education administrator incurred in the course of the administration;

(g)

the remuneration or emoluments of any person who has been employed by the education administrator to perform any services for the further education body, as required or authorised under the Act or these Rules;

(h)

the education administrator’s remuneration the basis of which has been fixed under Part 6 and unpaid pre-administration costs approved under rule 6.11;

(i)

the amount of any tax payable on chargeable gains accruing on the realisation of any asset of the further education body (irrespective of the person by whom the realisation is effected).

(2)

If the assets are insufficient to satisfy the liabilities, the court may make an order as to the payment out of the assets of the expenses incurred in the education administration in such order of priority as it thinks just.