OpenLegislation

Part I

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

The bond referred to in regulation 12 shall be a bond in a form approved by the Secretary of State which contains provision whereby:–

(i)

a surety or cautioner undertakes to be jointly and severally liable with the insolvency practitioner for the proper performance by the practitioner of the duties and obligations imposed upon the practitioner by the Act or the Bankruptcy Act and the subordinate legislation made under the Act or the Bankruptcy Act.

(ii)

the liability of the surety or cautioner and the practitioner is in both a general penalty sum and a specific penalty sum in respect of each person in respect of whom the practitioner acts and is limited to a sum equivalent to the losses caused by the fraud and dishonesty of the practitioner,

(iii)

a certificate is issued by the surety accepting liability in respect of the practitioner acting in relation to a particular person in the amount of the specific penalty, and

(iv)

any claims made under the bond are made firstly in respect of the specific penalty sum.