Regulation 19 Administration orders, &c

The following provisions of F1Schedule B1 to the Insolvency Act 1986 (which relate to administration orders and administrators) do not apply in relation to a collateral security charge—

and F3paragraph 41(2) of that Schedule (receiver to vacate office when so required by administrator) does not apply to a receiver appointed under such a charge.

The following provisions of the Insolvency Act 1986 (which relate to administration orders and administrators), as they have effect by virtue of section 249(1) of the Enterprise Act 2002, do not apply in relation to a collateral security charge—

and section 11(2) (receiver to vacate office when so required by administrator) does not apply to a receiver appointed under such a charge.

The following provisions of F6Schedule B1 to the Insolvency (Northern Ireland) Order 1989 (which relate to administration orders and administrators) do not apply in relation to a collateral security charge—

and F8paragraph 42(2) (receiver to vacate office when so required by administrator) does not apply to a receiver appointed under such a charge.

The following provisions of the Insolvency (Northern Ireland) Order 1989 (administration), as they have effect by virtue of Article 4(1) of the Insolvency (Northern Ireland) Order 2005, do not apply in relation to a collateral security charge—

and Article 24(2) of that Order (receiver to vacate office at request of administrator) shall not apply to a receiver appointed under such a charge.

However, where a collateral security charge falls to be enforced after an administration order has been made or a petition for an administration order has been presented, and there exists another charge over some or all of the same property ranking in priority to or pari passu with the collateral security charge, on the application of any person interested, the court may order that there shall be taken after enforcement of the collateral security charge such steps as the court may direct for the purpose of ensuring that the chargee under the other charge is not prejudiced by the enforcement of the collateral security charge.

A reference in paragraph (2) to “an administration order” shall include the appointment of an administrator under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 F11or under paragraph 15 or 23 of Schedule B1 to the Insolvency (Northern Ireland) Order 1989.

Sections 127 and 284 of the Insolvency Act 1986^f1 F12or Articles 107 and 257 of the Insolvency (Northern Ireland) Order 1989 (avoidance of property dispositions effected after commencement of winding up or presentation of bankruptcy petition), section 32(8) of the Bankruptcy (Scotland) Act 1985^f2 (effect of dealing with debtor relating to estate vested in permanent trustee) and any like provision or rule of law affecting a protected trust deed, do not apply to a disposition of property as a result of which the property becomes subject to a collateral security charge or any transactions pursuant to which that disposition is made.

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