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Regulation 11 Effect of protected status

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

(1)

Where a trust deed has become a protected trust deed, then–

(a)

subject to regulation 12, a creditor who has–

(i)

not been sent the documents mentioned in regulation 8; or

(ii)

notified the trustee of objection to the trust deed within the relevant period,

will have no higher right to recover the debt than a creditor who has acceded, or been deemed to have acceded, to the trust deed; and

(b)

an application for sequestration of the debtor’s estate may not be made by the debtor while the trust deed subsists.

(2)

Creditors will no longer be deemed to have acceded to a trust deed in terms of regulation 9(2) if the trustee issues a determination that the debtor is not discharged from the debtor’s liabilities in terms of regulation 19(5).