Rule 4.127B Liquidator’s remuneration where he realises assets on behalf of chargeholderF1

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

rule 4.127B applied (with modifications) by Building Society Insolvency 2010 rule 101
rule 4.54(5-CVL) substituted for rule 4.54(5) by Insolvency 2010 Sch. 1 para. 179(5)
rule 4.127B applied (with modifications) by Bank Insolvency 2009 rule 100
rule 4.127B applied (with modifications) by Bank Administration 2009 rule 58 59 60 61 Table

(1)

This Rule applies where the liquidator is not the official receiver and realises assets on behalf of a secured creditor.

(2)

Where the assets realised for a secured creditor are subject to a charge which when created was a mortgage or a fixed charge, the liquidator shall be entitled to such sum by way of remuneration as is arrived at by applying the realisation scale set out in Schedule 6 to the monies received by him in respect of the assets realised (including any sums received in respect of Value Added Tax thereon but after deducting any sums spent out of money received in carrying on the business of the company).

(3)

Where the assets realised for a secured creditor are subject to a charge which when created was a floating charge, the liquidator shall be entitled to such sum by way of remuneration as is arrived at by—

(a)

first applying the realisation scale set out in Schedule 6 to monies received by him from the realisation of those assets (including any Value Added Tax thereon but ignoring any sums received which are spent in carrying on the business of the company); and

(b)

then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 6 to the value of the assets distributed to the holder of the charge F2and payments made in respect of preferential debts.

Annotations

Textual amendments

F1: Rules 4.127A, 4.127B inserted (1.4.2004) by The Insolvency (Amendment) Rules 2004 (S.I. 2004/584), rules 1(2), 15
F2: Words in rule 4.127B(3)(b) inserted (1.4.2005) by The Insolvency (Amendment) Rules 2005 (S.I. 2005/527), rule 1(2), 29 (with rule 3(2))