# The Postal Administration (Scotland) Rules 2016, Article 45: Liabilities and rights of co-obligants

Extent: S

(1) Where a creditor has an obligant (in this Rule referred to as the “co-obligant”) bound to the creditor along with the company for the whole or part of the debt, the co-obligant shall not be freed or discharged from liability for the debt by reason of the dissolution of the company or by virtue of the creditor’s voting or drawing a dividend or assenting to, or not opposing—
(a) a scheme of arrangement; or
(b) a company voluntary arrangement.
(2) Where—
(a) a creditor has had a claim accepted in whole or in part; and
(b) a co-obligant holds a security over any part of the assets of the company,
the co-obligant shall account to the postal administrator so as to put the company in the same position as if the co-obligant had paid the debt to the creditor and thereafter had had the co-obligant’s claim accepted in whole or in part in the postal administration after deduction of the value of the security.
(3) Without prejudice to any right under any rule of law of a co-obligant who has paid the debt, the co-obligant may require and obtain at the co-obligant’s own expense from the creditor an assignation of the debt on payment of the amount thereof, and thereafter may in respect of that debt submit a claim, and vote and draw a dividend, if otherwise legally entitled to do so.
(4) In this Rule a “co-obligant” includes a cautioner.

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Source: https://www.legislation.gov.uk/uksi/2016/900/article/45 (the official version)
Page: https://openlegislation.uk/postal-administration-scotland-rules-2016/article-45
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.