SCHEDULES

Sections 5(5) and 23(9).

SCHEDULE 1Determination of Amount of Creditor's Claim

Amount which may be claimed generally

1(1)Subject to the provisions of this Schedule, the amount in respect of which a creditor shall be entitled to claim shall be the accumulated sum of principal and any interest which is due on the debt as at the date of sequestration.

(2)If a debt does not depend on a contingency but would not be payable but for the sequestration until after the date of sequestration, the amount of the claim shall be calculated as if the debt were payable on the date of sequestration but subject to the deduction of interest at the rate specified in section 51(7) of this Act from the said date until the date for payment of the debt.

(3)In calculating the amount of his claim, a creditor shall deduct any discount (other than any discount for payment in cash) which is allowable by contract or course of dealing between the creditor and the debtor or by the usage of trade.

Claims for aliment and periodical allowance on divorce

2(1)A person entitled to aliment, however arising, from a living debtor as at the date of sequestration, or from a deceased debtor immediately before his death, shall not be entitled to include in the amount of his claim—

(a)any unpaid aliment for any period before the date of sequestration unless the amount of the aliment has been quantified by court decree or by any legally binding obligation which is supported by evidence in writing, and, in the case of spouses (or, where the aliment is payable to a divorced person in respect of a child, former spouses) they were living apart during that period ;

(b)any aliment for any period after the date of sequestration.

(2)Sub-paragraph (1) above shall apply to a periodical allowance payable on divorce—

(a)by virtue of a court order ; or

(b)under any legally binding obligation which is supported by evidence in writing,

as it applies to aliment and as if for the words from " in the case " to " they " there were substituted the words " the payer and payee ".

Debts depending on contingency

3(1)Subject to sub-paragraph (2) below, the amount which a creditor shall be entitled to claim shall not include a debt in so far as its existence or amount depends upon a contingency.

(2)On an application by the creditor—

(a)to the permanent trustee ; or

(b)if there is no permanent trustee, to the sheriff,

the permanent trustee or sheriff shall put a value on the debt in so far as it is contingent, and the amount in respect of which the creditor shall then be entitled to claim shall be that value but no more ; and, where the contingent debt is an annuity, a cautioner may not then be sued for more than that value.

(3)Any interested person may appeal to the sheriff against a valuation under sub-paragraph (2) above by the permanent trustee, and the sheriff may affirm or vary that valuation.

Debts due under composition contracts

4Where in the course of a sequestration the debtor is discharged following approval by the sheriff of a composition offered by the debtor but the sequestration is subsequently revived, the amount in respect of which a creditor shall be entitled to claim shall be the same amount as if the composition had not been so approved less any payment already made to him under the composition contract.

Secured debts

5(1)In calculating the amount of his claim, a secured creditor shall deduct the value of any security as estimated by him:

Provided that if he surrenders, or undertakes in writing to surrender, a security for the benefit of the debtor's estate, he shall not be required to make a deduction of the value of that security.

(2)The permanent trustee may, at any time after the expiry of 12 weeks from the date of sequestration, require a secured creditor at the expense of the debtor's estate to discharge the security or convey or assign it to the permanent trustee on payment to the creditor of the value specified by the creditor; and the amount in respect of which the creditor shall then be entitled to claim shall be any balance of his debt remaining after receipt of such payment.

(3)In calculating the amount of his claim, a creditor whose security has been realised shall deduct the amount (less the expenses of realisation) which he has received, or is entitled to receive, from the realisation.

Valuation of claims against partners for debts of the partnership

6Where a creditor claims in respect of a debt of a partnership, against the estate of one of its partners, the creditor shall estimate the value of—

(a)the debt to the creditor from the firm's estate where that estate has not been sequestrated; or

(b)the creditor's claim against that estate where it has been sequestrated,

and deduct that value from his claim against the partner's estate ; and the amount in respect of which he shall be entitled to claim on the partner's estate shall be the balance remaining after that deduction has been made.

Sections 23(4), 24(5) and 28(5).

SCHEDULE 2Adaptation of Procedure etc. Under this Act where Permanent Trustee not Elected

1Section 24(2) shall, in so far as it relates to qualifications for continuing to act as permanent trustee, apply to a permanent trustee appointed, as it applies to one elected, under this Act.

2(1)In place of sections 25 and 26, sub-paragraphs (2) and (3) below shall have effect.

(2)The sheriff clerk shall issue to the permanent trustee an act and warrant in such form as shall be prescribed by the Court of Session by act of sederunt,

(3)The permanent trustee, on appointment, shall make such insertions in the sederunt book as are appropriate to provide a record of the sequestration process before his appointment, but he shall make no insertion therein relating to the written comments made by the interim trustee under section 20(2)(c) of this Act.

3(1)In place of subsections (1) to (5) of section 28 sub-paragraphs (2) and (3) below shall have effect.

(2)The permanent trustee may resign office with the consent of the Accountant in Bankruptcy or the sheriff.

(3)Where the permanent trustee resigns under sub-paragraph (2) above, or dies, a person nominated by the Accountant in Bankruptcy from the list of interim trustees, not being a person ineligible for election as permanent trustee under section 24(2) of this Act, shall forthwith apply to the sheriff for appointment as permanent trustee, and the sheriff shall thereupon so appoint him.

4In section 29—

(a)subsection (5) shall not have effect but sub-paragraph (3) of paragraph 3 above shall apply where the permanent trustee has been removed from office under subsection (1)(b) of section 29 of this Act or following an appeal under subsection (4) of that section as that sub-paragraph applies where he resigns or dies;

(b)subsection (6) shall have effect as if for the words from " (b) " to the end there were substituted the words—

“(b)appoint as permanent trustee a person nominated by the Accountant in Bankruptcy from the list of interim trustees, not being a person ineligible for election as permanent trustee under section 24(2) of this Act.”;

(c)subsection (7) shall not have effect; and

(d)subsection (8) shall have effect as if for the word " (4)" there were substituted the word " (5) ".

5Where an appointment is made under paragraph 3(3), or by virtue of paragraph 4(a) or (b), above the provisions of this Act shall continue to have effect as regards the sequestration subject to such modifications and with such further provisions as are set out in this Schedule.

6Section 30 shall not have effect, and, in any sequestration to which this Schedule applies by virtue of section 28(5) of this Act, any commissioners already holding office shall cease to do so.

7In section 39—

(a)in subsection (1), the reference to the permanent trustee's confirmation in office shall be construed as a reference to his receiving the act and warrant issued under paragraph 2(2) of this Schedule ;

(b)subsection (2) shall have effect as if for the words " if there are commissioners only with the consent of the commissioners, the creditors or the court" there were substituted the words " only with the consent of the Accountant in Bankruptcy ".

8Any power under section 44 or 45 to apply to the sheriff for an order requiring attendance shall be exerciseable only with the consent of the Accountant in Bankruptcy (unless, in the case of section 45(1), the Accountant in Bankruptcy has requested the application).

9In subsection (1) of section 53 the reference to the period in respect of which submission is to be made by the permanent trustee shall, where that period is the first accounting period, be construed as including a reference to any period during which he has acted as interim trustee in the sequestration; and that section shall have effect as if after that subsection there were inserted the following subsection—

“(1A)Where the funds of the debtor's estate are insufficient to meet the amount of the outlays and remuneration of both the interim trustee and the permanent trustee—

(a)that amount to the extent of the insufficiency shall be met by the Accountant in Bankruptcy out of money provided under section 76(2Xa) of this Act; and

(b)the Accountant in Bankruptcy in his determination under subsection (3)(a)ii) below shall specify the respective sums to be met out of the debtor's estate and out of money so provided :

Provided that—

(i)no amount shall be payable by virtue of paragraph (a) above if any dividend has been paid to creditors in the sequestration ; and

(ii)if any amount is paid by virtue of that paragraph and a subsequent distribution of the estate is proposed, that amount shall be handed over to the Secretary of State before such distribution is made.”.

Section 51.

SCHEDULE 3PREFERRED DEBTS

PART IList of Preferred Debts

Debts to Inland Revenue

1(1)Sums due at the relevant date from the debtor on account of deductions of income tax from emoluments paid during the period of twelve months next before that date, being deductions which the debtor was liable to make under section 204 of the [1970 c. 10.] Income and Corporation Taxes Act 1970 (pay as you earn), less the amount of the repayments of income tax which the debtor was liable to make during that period.

(2)Sums due at the relevant date from the debtor in respect of such deductions as are required to be made by the debtor for that period under section 69 of the [1975 c. 45.] Finance (No. 2) Act 1975 (subcontractors in the construction industry).

Debts due to Customs and Excise

2(1)Any value added tax which is referable to the period of six months next before the relevant date.

(2)The amount of any car tax which is due at the relevant date from the debtor and which became due within a period of twelve months next before that date.

(3)Any amount which is due—

(a)by way of general betting duty or bingo duty, or

(b)under section 12(1) of the [1981 c. 63.] Betting and Gaming Duties Act 1981 (general betting duty and pool betting duty recoverable from agent collecting stakes), or

(c)under section 14 of, or Schedule 2 to, that Act (gaming licence duty),

from the debtor at the relevant date and which became due within the period of twelve months next before that date.

Social Security contributions

3(1)All sums which on the relevant date are due from the debtor on account of Class 1 or Class 2 contributions under the [1975 c. 15.] Social Security Act 1975 or the [1975 c. 15.] Social Security (Northern Ireland) Act 1975 and which became due from the debtor in the twelve months next before the relevant date.

(2)All sums which on the relevant date have been assessed on and are due from the debtor on account of Class 4 contributions under either of the said Acts of 1975, being sums which—

(a)are due to the Commissioners of Inland Revenue (rather than to the Secretary of State or a Northern Ireland department) ; and

(b)are assessed on the debtor up to 5th April next before the relevant date,

but not exceeding, in the whole, any one year's assessment.

Contributions to occupational pension schemes, etc.

4Any sum which is owed by the debtor and is a sum to which Schedule 3 to the [1975 c. 60.] Social Security Pensions Act 1975 (contributions to occupational pension scheme and state scheme premiums) applies.

Remuneration of employees, etc.

5(1)So much of any amount which—

(a)is owed by the debtor to a person who is or has been an employee of the debtor, and

(b)is payable by way of remuneration in respect of the whole or any part of the period of four months next before the relevant date,

as does not exceed the prescribed amount.

(2)An amount owed by way of accrued holiday remuneration, in respect of any period of employment before the relevant date, to a person whose employment by the debtor has been terminated, whether before, on or after that date.

(3)So much of any sum owed in respect of money advanced for the purpose as has been applied for the payment of a debt which, if it had not been paid, would have been a debt falling within sub-paragraph (1) or (2) above.

6So much of any amount which—

(a)is ordered, whether before or after the relevant date, to be paid by the debtor under the [1985 c. 17.] Reserve Forces (Safeguard of Employment) Act 1985 ; and

(b)is so ordered in respect of a default made by the debtor before that date in the discharge of his obligations under that Act,

as does not exceed such amount as may be prescribed.

PART IIInterpretation of Part I

Meaning of " the relevant date "

7In Part I of this Schedule " the relevant date " means—

(a)in relation to a debtor (other than a deceased debtor), the date of sequestration ; and

(b)in relation to a deceased debtor, the date of his death.

Periods to which value added tax referable

8(1)For the purpose of paragraph 2(1) of Part I of this Schedule—

(a)where the whole of the prescribed accounting period to- which any value added tax is attributable falls within the period of six months next before the relevant date ( " the relevant period "), the whole amount of that tax shall be referable to the relevant period ; and

(b)in any other case the amount of any value added tax which shall be referable to the relevant period shall be the proportion of the tax which is equal to such proportion (if any) of the accounting reference period in question as falls within the relevant period.

(2)In sub-paragraph (1) above " prescribed accounting period" has the same meaning as in the [1983 c. 55.] Value Added Tax Act 1983.

Amounts payable by way of remuneration

9(1)For the purposes of paragraph 5 of Part I of this Schedule a sum is payable by the debtor to a person by way of remuneration in respect of any period if—

(a)it is paid as wages or salary (whether payable for time or for piece work or earned wholly or partly by way of commission) in respect of services rendered to the debtor in that period ; or

(b)it is an amount falling within sub-paragraph (2) below and is payable by the debtor in respect of that period.

(2)An amount falls within this sub-paragraph if it is—

(a)a guarantee payment under section 12(1) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 (employee without work to do for a day or part of a day),

(b)remuneration on suspension on medical grounds under section 19 of that Act,

(c)any payment for the time off under section 27(3) (trade-union duties), 31(3) (looking for work, etc.) or 31A(4) (antenatal care) of that Act,

(d)statutory sick pay under Part I of the [1982 c. 24.] Social Security and Housing Benefits Act 1982,

(e)remuneration under a protective award made by an industrial tribunal under section 101 of the [1975 c. 44.] Employment Protection Act 1975 (redundancy dismissal with compensation).

(3)For the purposes of paragraph 5(2) of Part I of this Schedule, holiday remuneration shall be deemed, in the case of a person whose employment has been terminated by or in consequence of the award of sequestration of his employer's estate, to have accrued to that person in respect of any period of employment if, by virtue of that person's contract of employment or of any enactment (including an order made or direction given under any enactment), that remuneration would have accrued in respect of that period if that person's employment had continued until he became entitled to be allowed the holiday.

(4)Without prejudice to the preceding provisions of this paragraph—

(a)any remuneration payable by the debtor to a person in respect of a period of holiday or of absence from work through sickness or other good cause is deemed to be wages or, as the case may be, salary in respect of services rendered to the debtor in that period ; and

(b)references in this paragraph to remuneration in respect of a period of holiday include references to any sums which, if they had been paid, would have been treated for the purposes of the enactments relating to social services as earnings in respect of that period.

Transitional Provisions

10Regulations under paragraph 5 or 6 of Part I of this Schedule may contain such transitional provisions as may appear to the Secretary of State necessary or expedient.

Section 56.

SCHEDULE 4Discharge on Composition

1(1)At any time after the sheriff clerk issues the act and warrant to the permanent trustee, an offer of composition may be made by or on behalf of the debtor, in respect of his debts, to the permanent trustee.

(2)Any offer of composition shall specify caution or other security to be provided for its implementation.

2The permanent trustee shall submit the offer of composition along with a report thereon to the commissioners or, if there are no commissioners, to the Accountant in Bankruptcy.

3The commissioners or, if there are no commissioners, the Accountant in Bankruptcy—

(a)if they consider (or he considers) that the offer of composition will be timeously implemented and that, if the rules set out in section 51 of, and Schedule 1 to, this Act were applicable, its implementation would secure payment of a dividend of at least 25p in the £ in respect of the ordinary debts ; and

(b)if satisfied with the caution or other security specified in the offer,

shall recommend that the offer should be placed before the creditors.

4Where a recommendation is made that the offer of composition should be placed before the creditors, the permanent trustee shall—

(a)intimate the recommendation to the debtor and record it in the sederunt book;

(b)publish in the Edinburgh Gazette a notice stating that an offer of composition has been made and where its terms may be inspected ;

(c)invite every creditor known to him to accept or reject the offer by completing a prescribed form sent by the permanent trustee with the invitation and returning the completed form to him ; and

(d)send along with the prescribed form a report—

(i)summarising the offer and the present state of the debtor's affairs and the progress in realising his estate ; and

(ii)estimating, if the offer is accepted, the expenses to be met in concluding the sequestration proceedings and the dividend which would be payable in respect of the ordinary debts if the rules set out in section 51 of, and Schedule 1 to, this Act were applied.

5(1)The permanent trustee shall determine from the completed prescribed forms duly received by him that the offer of composition has been accepted by the creditors, if a majority in number and not less than two-thirds in value of the creditors known to him have accepted it, and otherwise shall determine that they have rejected it.

(2)For the purposes of this paragraph, a prescribed form shall be deemed to be duly received by the permanent trustee if it is received by him not later than 14 days after the date on which it was sent to the creditor.

(3)The permanent trustee shall intimate in writing his determination under this paragraph to the debtor and any other person by whom the offer of composition was made and shall insert his determination in the sederunt book.

6Where the permanent trustee determines that the creditors have accepted the offer of composition, he shall submit to the sheriff—

(a)a statement that he has so determined ;

(b)a copy of the report mentioned in paragraph 4(d) of this Schedule; and

(c)a declaration by the debtor as to the matters mentioned in sub-paragraphs (i) and (ii) of section 54(4)(b) of this Act.

7(1)The sheriff shall, on the receipt by him of the documents mentioned in paragraph 6 of this Schedule, fix a date and time for a hearing to consider whether or not to approve the offer of composition.

(2)The permanent trustee shall then send to every creditor known to him a notice in writing stating—

(a)that he has determined that the creditors have accepted the offer of composition ;

(b)that a hearing has been fixed by the sheriff to consider whether or not to approve the offer ;

(c)the place, date and time of the hearing ; and

(d)that the recipient of the notice may make representations at the hearing as to whether or not the offer of composition should be approved.

8(1)At the hearing the sheriff shall examine the documents and hear any representations and thereafter shall make an order—

(a)if he is satisfied that a majority in number and not less than two-thirds in value of the creditors known to the permanent trustee have accepted the offer of composition and that the terms of the offer are reasonable, approving the offer; and

(b)if he is not so satisfied, refusing to approve the offer of .'•0 composition.

(2)The sheriff may make an order approving the offer of composition, notwithstanding that there has been a failure to comply with any provision of this Schedule.

(3)The debtor or any creditor may within 14 days of the order being made appeal against an order approving or refusing to approve the offer of composition.

9(1)Where the offer of composition is approved, the permanent trustee shall—

(a)submit to the commissioners or, if there are no commissioners, to the Accountant in Bankruptcy, his accounts of his intromissions with the debtor's estate for audit and a claim for the outlays reasonably incurred by him and for his remuneration; and where the said documents are submitted to the commissioners, he shall send a copy of them to the Accountant in Bankruptcy ;

(b)take all reasonable steps to ensure that the interim trustee (where he is a different person) has submitted, or submits, to the Accountant in Bankruptcy his accounts and his claim for his outlays and remuneration.

(2)Subsections (3), (4), (6) and (10) of section 53 of this Act shall apply, subject to any necessary modifications, in respect of the accounts and claim submitted under sub-paragraph (1)(a) above as they apply in respect of the accounts and claim submitted under section 53(1) of this Act.

10As soon as the procedure under paragraph 9 of this Schedule has been completed, there shall be lodged with the sheriff clerk—

(a)by the permanent trustee, a declaration that all necessary charges in connection with the sequestration have been paid or that satisfactory provision has been made in respect of the payment of such charges ;

(b)by or on behalf of the debtor, the bond of caution or other security for payment of the composition.

11Once the documents have been lodged under paragraph 10 of this Schedule, the sheriff shall make an order discharging the debtor and the permanent trustee; and subsection (7) of section 54 of this Act shall apply in relation to an order under this paragraph as it applies in relation to an order under subsection (6) of that section.

12An order under paragraph 11 of this Schedule discharging the permanent trustee shall have the effect of discharging him from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the permanent trustee in exercising the functions conferred on him by this Act

13Notwithstanding that an offer of composition has been made, the sequestration shall proceed as if no such offer of composition has been made until the discharge of the debtor becomes effective; and the sequestration shall thereupon cease.

14A creditor who has not submitted a claim under section 48 of this Act before the sheriff makes an order approving an offer of composition shall not be entitled to make any demand against a person offering the composition on behalf of the debtor or against a cautioner in the offer; but this paragraph is without prejudice to any right of such a creditor to a dividend out of the debtor's estate equal to the dividend which creditors of the same class are entitled to receive under the composition.

15A debtor may make two, but no more than two, offers of composition in the course of a sequestration.

16On an order under paragraph 11 of this Schedule discharging the debtor becoming effective—

(a)the debtor shall be re-invested in his estate as existing at the date of the order ;

(b)the debtor shall, subject to paragraph 14 of this Schedule, be discharged of all debts for which he was liable at the date of sequestration (other than any debts mentioned in section 55(2) of this Act); and

(c)the claims of creditors in the sequestration shall be converted into claims for their respective shares in the composition.

17(1)Without prejudice to any rule of law relating to the reduction of court decrees, the Court of Session, on the application of any creditor, may recall the order of the sheriff approving the offer of composition and discharging the debtor and the permanent trustee where it is satisfied—

(a)that there has been, or is likely to be, default in payment of the composition or of any instalment thereof ; or

(b)that for any reason the composition cannot be proceeded with or cannot be proceeded with without undue delay or without injustice, to the creditors. :. /

(2)The effect of a decree of recall under this paragraph where the debtor has already been discharged shall be to revive the sequestration:

Provided that the revival of the sequestration shall not affect the validity of any transaction which has been entered into by the debtor since his discharge with a person who has given value and has acted in good faith.

(3)Where the permanent trustee has been discharged, the Court may, on pronouncing a decree of recall under this paragraph, appoint a judicial factor to administer the debtor's estate, and give the judicial factor such order as it thinks fit as to that administration.

(4)The clerk of court shall send a copy of a decree of recall under this paragraph to the permanent trustee or judicial factor for insertion in the sederunt book.

18(1)Without prejudice to any rule of law relating to the reduction of court decrees, the Court of Session, on the application of any creditor, may reduce an order under paragraph 11 of this Schedule discharging a debtor where it is satisfied that a payment was made or a preference granted or that a payment or preference was promised for the purpose of facilitating the obtaining of the debtor's discharge.

(2)The Court may, whether or not it pronounces a decree of reduction under this paragraph, order a creditor who has received a payment or preference in connection with the debtor's discharge to surrender the payment or the value of the preference to the debtor's estate.

(3)Where the permanent trustee has been discharged, the Court may, on pronouncing a decree of reduction under this paragraph, appoint a judicial factor to administer the debtor's estate,, and give the judicial factor such order as it thinks fit as to that administration.

(4)The clerk of court shall send a copy of a decree of reduction under this paragraph to the permanent trustee or judicial factor for insertion in the sederunt book.

Section 59.

SCHEDULE 5Voluntary Trust Deeds for Creditors

Remuneration of trustee

1Whether or not provision is made in the trust deed for auditing the trustee's accounts and for determining the method of fixing the trustee's remuneration or whether or not the trustee and the creditors have agreed on such auditing and the method of fixing the remuneration, the debtor, the trustee or any creditor may, at any time before the; final distribution of the debtor's estate among the creditors, have the trustee's accounts audited by and his remuneration fixed by the Accountant in Bankruptcy.

Registration of notice of inhibition

2(1)The trustee, from time to time after the trust deed has been delivered to him, may cause a notice in such form as shall be prescribed by the Court of Session by act of sederunt to be recorded in the register of inhibitions and adjudications ; and such recording shall have the same effect as the recording in that register of letters of inhibition against the debtor.

(2)The trustee, after the debtor's estate has been finally distributed among his creditors or the trust deed has otherwise ceased to be operative, shall cause to be so recorded a notice in such form as shall be prescribed as aforesaid recalling the notice recorded under sub-paragraph (1) above.

Lodging of claim to bar effect of limitation of actions

3The submission of a claim by a creditor to the trustee acting under a trust deed shall bar the effect of any enactment or rule of law relating to limitation of actions in any part of the United Kingdom.

Valuation of claims

4Unless the trust deed otherwise provides, Schedule 1 to this Act shall apply in relation to a trust deed as it applies in relation to a sequestration but subject to the following modifications—

(a)in paragraphs 1, 2 and 5 for the word "sequestration" wherever it occurs there shall be substituted the words " granting of the trust deed ";

(b)in paragraph 3—

(i)in sub-paragraph (2), for the words from the beginning of paragraph (a) to " or sheriff" there shall be substituted the words " the trustee "; and

(ii)in sub-paragraph (3), for the reference to the permanent trustee there shall be substituted a reference to the trustee;

(c)paragraph 4 shall be omitted ; and

(d)in paragraph 5(2) for the references to the permanent trustee there shall be substituted references to the trustee.

Protected trust deeds

5Paragraphs 6 and 7 of this Schedule shall apply in respect of a trust deed if—

(a)the trustee is a person who would not be disqualified under section 24(2) of this Act from acting as permanent trustee if the debtor's estate were being sequestrated ;

(b)the trustee, forthwith after the trust deed has been delivered to him, both publishes in the Edinburgh Gazette and sends to every creditor known to him a notice in the prescribed form—

(i)stating that the trust deed has been granted by the debtor; and

(ii)inviting creditors, in order that paragraphs 6 and 7 of this Schedule may apply, to accede to the trust deed within 4 weeks of the date on which the notice is so published ;

(c)within the said period of 4 weeks a majority in number and not less than two-thirds in value of the creditors accede to the trust deed ; and

(d)the trustee immediately after the expiry of the said period sends to the Accountant in Bankruptcy for registration in the register of insolvencies a copy of the trust deed with a certificate endorsed thereon that it is a true copy and the accession of creditors as required by sub-paragraph (c) above has been obtained.

6Where the provisions of paragraph 5 of this Schedule have been fulfilled, then—

(a)subject to paragraph 7 of this Schedule, a creditor who has not acceded to the trust deed shall have no higher right to recover his debt than a creditor who has so acceded ; and

(b)the debtor may not petition for the sequestration of his estate while the trust deed subsists.

7(1)A qualified creditor who has not acceded to the trust deed may present a petition for sequestration of the debtor's estate—

(a)not later than 6 weeks after the date of publication of the notice under paragraph 5(b) of this Schedule ; but

(b)subject to section 8(1)(b) of this Act, at any time if he avers that the provision for distribution of the estate is or is likely to be unduly prejudicial to a creditor or class of creditors.

(2)The court may award sequestration in pursuance of subparagraph (1)(a) above if it considers that to do so would be in the best interests of the creditors.

(3)The court shall award sequestration in pursuance of subparagraph (1)(b) above if, but only if, it is satisfied that the creditor's said averment is correct.

8In this Act a trust deed in respect of which paragraphs 6 and 7 of this Schedule apply is referred to as a " protected trust deed ".

9Where the trustee under a protected trust deed has made the final distribution of the estate among the creditors, he shall, not more than 28 days after the final distribution, send to the Accountant in Bankruptcy for registration in the register of insolvencies—

(a)a statement in the prescribed form indicating how the estate was realised and distributed; and

(b)a certificate to the effect that the distribution was in accordance with the trust deed.

10Where the trustee under a protected trust deed has obtained a discharge from the creditors who have acceded to the trust deed he shall forthwith give notice of the discharge—

(a)by sending the notice by recorded delivery to every creditor known to him who has not acceded to the trust deed ; and

(b)by sending the notice to the Accountant in Bankruptcy who shall register the fact of the discharge in the register of insolvencies,

and, except where the court makes an order under paragraph 12 below, the sending of such notice to a creditor who has not acceded to the trust deed shall be effective to make the discharge binding upon that creditor.

Creditors not acceding to protected trust deed

11A creditor who has not acceded to a protected trust deed may, not more than 28 days after notice has been sent under paragraph 10 above, apply to the court for an order under paragraph 12 below.

12Where, on an application by a creditor under paragraph 11 above, the court is satisfied (on grounds other than those on which a petition under paragraph 7(1)(b) above was or could have been presented by that creditor) that the intromissions of the trustee under the protected trust deed with the estate of the debtor have been so unduly prejudicial to that creditor's claim that he should not be bound by the discharge it may order that he shall not be so bound.

13Where the court makes an order under paragraph 12 above, the clerk of court shall send a copy of the order to—

(a)the trustee ; and

(b)the Accountant in Bankruptcy who shall register the copy of the order in the register of insolvencies.

Section 66.

SCHEDULE 6MEETINGS OF CREDITORS AND COMMISSIONERS

PART IMeetings of creditors other than the statutory meeting

Calling of meeting

1The permanent trustee shall call a meeting of creditors if required to do so by—

(a)order of the court;

(b)one-tenth in number or one-third in value of the creditors ;

(c)a commissioner; or

(d)the Accountant in Bankruptcy.

2A meeting called under paragraph 1 above shall be held not later than 28 days after the issuing of the order of the court under sub-paragraph (a) of that paragraph or the receipt by the permanent trustee of the requirement under sub-paragraph (b), (c) or (d) thereof.

3The permanent trustee or a commissioner who has given written notice to him may at any time call a meeting of creditors.

4The permanent trustee or a commissioner calling a meeting under paragraph 1 or 3 above shall, not less than 7 days before the date fixed for the meeting, notify—

(a)every creditor known to him ; and

(b)the Accountant in Bankruptcy,

of the date, time and place fixed for the holding of the meeting and its purpose.

5(1)Where a requirement has been made under paragraph 1 above but no meeting has been called by the permanent trustee, the Accountant in Bankruptcy may, of his own accord or on the application of any creditor, call a meeting of creditors.

(2)The Accountant in Bankruptcy calling a meeting under this paragraph shall, not less than 7 days before the date fixed for the meeting, take reasonable steps to notify the creditors of the date, time and place fixed for the holding of the meeting and its purpose.

6It shall not be necessary to notify under paragraph 4 or 5 of this Schedule any creditor whose accepted claim is less than £50 or such sum as may be prescribed, unless the creditor has requested in writing such notification.

Role of permanent trustee at meeting

7(1)At the commencement of a meeting, the chairman shall be the permanent trustee who as chairman shall, after carrying out his duty under section 49(1) of this Act, invite the creditors to elect one of their number as chairman in his place and shall preside over the election.

(2)If a chairman is not elected in pursuance of this paragraph, the permanent trustee shall remain the chairman throughout the meeting.

(3)The permanent trustee shall arrange for a record to be made of the proceedings at the meeting and he shall insert the minutes of the meeting in the sederunt book.

Appeals

8The permanent trustee, a creditor or any other person having an interest may, within 14 days after the date of a meeting called under paragraph 1 or 3 above, appeal to the sheriff against a resolution of the creditors at the meeting.

PART IIAll Meetings of Creditors

Validity of proceedings

9No proceedings at a meeting shall be invalidated by reason only that any notice or other document relating to the calling of the meeting which is required to be sent or given under any provision of this Act has not been received by, or come to the attention of, any creditor before the meeting.

Locus of meeting

10Every meeting shall be held in such place (whether or not in the sheriffdom) as is, in the opinion of the person calling the meeting, the most convenient for the majority of the creditors.

Mandatories

11(1)A creditor may authorise in writing any person to represent him at a meeting.

(2)A creditor shall lodge any authorisation given under sub-paragraph (1) above with the interim trustee or, as the case may be, the permanent trustee before the commencement of the meeting.

(3)Any reference in paragraph 7(1) of this Schedule and the following provisions of this Part of this Schedule to a creditor shall include a reference to a person authorised by him under this paragraph.

Quorum

12The quorum at any meeting shall be one creditor.

Voting at meeting

13Any question at a meeting shall be determined by a majority in value of the creditors who vote on that question.

Objections by creditors

14(1)The chairman at any meeting may allow or disallow any objection by a creditor, other than (if the chairman is not the permanent trustee) an objection relating to a creditor's claim.

(2)Any person aggrieved by the determination of the chairman in respect of an objection may appeal therefrom to the sheriff.

(3)If the chairman is in doubt whether to allow or disallow an objection, the meeting shall proceed as if no objection had been made, except that for the purposes of appeal the objection shall be deemed to have been disallowed.

Adjournment of meeting

15(1)If no creditor has appeared at a meeting at the expiry of a period of half an hour after the time appointed for the commencement of the meeting, the chairman shall adjourn the meeting to such other day as the chairman shall appoint, being not less than 7 nor more than 21 days after the day on which the meeting was adjourned.

(2)The chairman may, with the consent of a majority in value of the creditors who vote on the matter, adjourn a meeting.

(3)Any adjourned meeting shall be held at the same time and place as the original meeting, unless in the resolution for the adjournment of the meeting another time or place is specified.

Minutes of meeting

16The minutes of every meeting shall be signed by the chairman and within 14 days of the meeting a copy of the minutes shall be sent to the Accountant in Bankruptcy.

PART IIIMeetings of Commissioners

17The permanent trustee may call a meeting of commissioners at any time, and shall call a meeting of commissioners—

(a)on being required to do so by order of the court; or

(b)on being requested to do so by the Accountant in Bankruptcy or any commissioner.

18If the permanent trustee fails to call a meeting of commissioners within 14 days of being required or requested to do so under paragraph 17 of this Schedule, a commissioner may call a meeting of commissioners.

19The permanent trustee shall give the commissioners at least 7 days notice of a meeting called by him, unless the commissioners decide that they do not require such notice.

20The permanent trustee shall act as clerk at meetings and shall insert a record of the deliberations of the commissioners in the sederunt book.

21If the commissioners are considering the performance of the functions of the permanent trustee under any provision of this Act, he shall withdraw from the meeting if requested to do so by the commissioners; and in such a case a commissioner shall act as clerk, shall transmit a record of the deliberations of the commissioners to the permanent trustee for insertion in the sederunt book and shall authenticate the insertion when made.

22The quorum at a meeting of commissioners shall be one commissioner and the commissioners may act by a majority of the commissioners present at the meeting.

23Any matter may be agreed by the commissioners without a meeting if such agreement is unanimous and is subsequentiy recorded in a minute signed by the commissioners ; and that minute shall be inserted by the permanent trustee in the sederunt book.

Section 75(1).

SCHEDULE 7

PART IConsequential Amendments

The Judicial Factors (Scotland) Act 1880 (c.4)

1In section 3 (interpretation), for the words "section 14 or 163 of the Bankruptcy (Scotland) Act 1913 " there shall be substituted the words " section 11A of the [1889 c. 39.] Judicial Factors (Scotland) Act 1889 ".

The Bankruptcy Act 1883 (c.52)

2(1)In subsection (1) of section 32 after the words "adjudged bankrupt" there shall be inserted the words " or his estate has been sequestrated ".

(2)After subsection (2) of that section there shall be inserted the following subsection

“(2A)The disqualifications to which a debtor whose estate has been sequestrated in Scotland is subject shall cease to have effect if and when—

(a)the award of sequestration is recalled or reduced; or

(b)he is discharged under or by virtue of the Bankruptcy (Scotland) Act 1985.”.

(3)After section 34 there shall be inserted the following section—

“34AExtent of Part II.

This Part of this Act (except section 34 above) shall extend to Scotland.”.

The Judicial Factors (Scotland) Act 1889 (c.39)

3In section 2, at the beginning there shall be inserted the words " Without prejudice to section 1(2) of the Bankruptcy (Scotland) Act 1985 (Accountant of Court to be Accountant in Bankruptcy), ".

4After section 11 there shall be inserted the following sections—

“11AApplication for judicial factor on estate of person deceased.

(1)It shall be competent to one or more creditors of parties deceased, or to persons having an interest in the succession of such parties, in the event of the deceased having left no settlement appointing trustees or other parties having power to manage his estate or part thereof, or in the event of such parties not accepting or acting, to apply by summary petition to the Court of Session or to the sheriff of the sheriffdom within which the deceased resided or carried on business during the year immediately preceding the date of the petition, or within which heritage belonging to the deceased at the time of his death is situated, for the appointment of a judicial factor.

(2)After such intimation of the petition to the creditors of the deceased, and other persons interested, as may be considered necessary, and after hearing parties, the Court or sheriff may appoint such factor, who shall administer the estate subject to the supervision of the accountant in accordance with this Act and the Judicial Factors (Scotland) Act 1880 and relative acts of sederunt; and, if the deceased's estate is absolutely insolvent within the meaning of section 73(2) of the Bankruptcy (Scotland) Act 1985, section 51 of, and Schedule 1 to, that Act shall apply as if for references to—

(a)the interim trustee or permanent trustee there were substituted references to the judicial factor; and

(b)the date of sequestration there were substituted references to the date of the judicial factor's appointment.

11BJudicial factor's duties to be regulated by act of sederunt.

The Court of Session shall have full power to regulate by act of sederunt—

(a)the caution to be found by a factor appointed under section 11A above ;

(b)the mode in which he shall proceed in realising and dividing the funds, and otherwise in the discharge of his duties ; and

(c)any other matter which they may deem necessary.”.

The Conveyancing (Scotland) Act 1924 (c. 27)

5In section 44(4)(c) (limitation of effect of entries in the register of inhibitions and adjudications)—

(a)after the words "Bankruptcy (Scotland) Act 1913" there shall be inserted the words " or the Bankruptcy (Scotland) Act 1985 ";

(b)after the words " effect of recording " there shall be inserted " (a) " and after the words " as aforesaid " there shall be inserted the words " ; or (b) under subsection (1)(a) of section 14 of the Bankruptcy (Scotland) Act 1985 the certified copy of an order shall have expired by virtue of subsection (3) of that section "; and

(c)for the words " in terms of paragraph (b) of this subsection ", there shall be substituted the words " in the form provided by Schedule O to this Act ".

The Third Parties (Rights Against Insurers) Act 1930 (c.25)

6(1)In section 1(2) (rights of third parties against insurers on bankruptcy of insured), after the words "provable in bankruptcy " there shall be inserted the words " (in Scotland, any claim accepted in the sequestration) ".

(2)In section 4 (application to Scotland)—

(a)paragraph (a) shall be omitted ; and

(b)in paragraph (b), for the words "one hundred and sixty three of the Bankruptcy (Scotland) Act 1913 " there shall be substituted the words " 11A of the Judicial Factors (Scotland) Act 1889 ".

The Exchange Control Act 1947 (c.14)

7In paragraph 7 of the Fourth Schedule (application of that Schedule to Scotland), for sub-paragraph (4) there shall be substituted the following sub-paragraph—

“(4)In paragraph 6, for the words from ' complies' to ' creditor's debt' there shall be substituted the words ' is a debt which would allow a creditor to be a qualified creditor in accordance with the requirements of subsection (4) of section 5 of the Bankruptcy (Scotland) Act 1985, be a debt in respect of which a creditor may present a petition for sequestration'.”

The Conveyancing and Feudal Reform (Scotland) Act 1970 (c.35)

8In paragraph 9(2)(b) of Schedule 3 (" insolvent" for purposes of standard condition as to default), for the words " 163 of the Bankruptcy (Scotland) Act 1913 " there shall be substituted the words " 11A of the Judicial Factors (Scotland) Act 1889 ".

The Superannuation Act 1972 (all)

9In section 5(2) (benefits under civil service superannuation schemes not negotiable), for the words " 148 " and " 1913 " there shall be substituted respectively, the words " 32(2) and (4) " and " 1985 ".

The Road Traffic Act 1972 (c.20)

10In section 150(2) (effect of bankruptcy of insured or secured persons)—

(a)the words from " ' company'" to " and ", where it first occurs, shall be omitted; and

(b)for the words from " 163 " to " 1913 " there shall be substituted the words " 11A of the Judicial Factors (Scotland) Act 1889 ".

The Prescription and Limitation (Scotland) Act 1973 (c. 52)

11In section 9(1), for paragraph (b) there shall be substituted the following paragraphs—

“(b)by the presentation of, or the concurring in, a petition for sequestration or by the submission of a claim under section 22 or 48 of the Bankruptcy (Scotland) Act 1985 (or those sections as applied by section 613 of the Companies Act 1985) ; or

(c)by a creditor to the trustee acting under a trust deed as denned in section 5(2)(c) of the Bankruptcy (Scotland) Act 1985 ;”.

The Local Government (Scotland) Act 1973 (c.65)

12In section 31(2) (disqualifications regarding members of local authority), for paragraph (b) there shall be substituted the following paragraph—

“(b)he is discharged under or by virtue of the Bankruptcy (Scotland) Act 1985.”.

The Social Security Pensions Act 1975 (c.60)

13In section 58 of the Social Security Pensions Act 1975 (under which Schedule 3 to that Act has effect for giving priority in bankruptcy etc. to certain debts) after the word "effect" there shall be inserted the words " for the purposes, in respect of the sequestration of estates in Scotland, of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (preferred debts) " ; and, for the purposes of the sequestration of a debtor's estate in Scotland, Schedule 3 to the said Act of 1975 shall have effect as if—

(i)in paragraph 3(1), for the words " a person going into liquidation or being adjudged bankrupt" there were substituted the words " the sequestration of a debtor's estate "; and

(ii)in paragraph 4, for the words "Schedule 4 to the Insolvency" there were substituted the words " Part I of Schedule 3 to the Bankruptcy (Scotland) ".

The Employment Protection {Consolidation) Act 1978 (c. 44)

14(1)In section 106(6) (payments out of fund to employees), in paragraph (b) for the words from " 163 " to " 1913 " there shall be substituted the words " 11A of the Judicial Factors (Scotland) Act 1889 ".

(2)In section 122(8) (employee's rights on insolvency of employer), for the word " admitted " there shall be substituted the word " accepted ".

(3)In section 125(2) (transfer to Secretary of State of rights and remedies), for paragraph (b) there shall be substituted the following paragraph—

“(b)section 51 of the Bankruptcy (Scotland) Act 1985 ; and”.

(4)In section 127(2)(b) (interpretation) for the words from " 163 " to " 1913 " there shall be substituted the words " 11A of the Judicial Factors (Scotland) Act 1889 ".

The Land Registration (Scotland) Act 1979 (c.33)

15In section 12(3)(b) (restriction as regards indemnity in respect of registered interest in land), after the word " reduced", where it first occurs, there shall be inserted the words " , whether or not under subsection (4) of section 34, or subsection (5) of section 36, of the Bankruptcy (Scotland) Act 1985 (or either of those subsections as applied by sections 615A(4) and 615B of the Companies Act 1985, respectively), ".

The Banking Act 1979 (c.37)

16In section 28 (payments to depositors on institution's insolvency)—-

(a)in subsection (6)—

(i)in paragraph (a), after the word " proved " there shall be inserted the words " or whose claim has been accepted in the sequestration "; and

(ii)in paragraph (6)(iii), for the words " 72" and " 1913 " there shall be substituted, respectively, the words " 30 " and " 1985 " ; and

(b)in subsection (7)(c)—

(i)the words from " where " to " court," shall cease to have effect; and

(ii)for the words " deed of arrangement or other settlement or arrangement by way " there shall be substituted the words " trust deed, contract of composition or offer ".

The Estate Agents Act 1979 (c.38)

17In section 23(2) (bankrupts not to engage in estate agency work), in paragraph (a) after the word "recalled" there shall be inserted the words " or reduced ".

The Value Added Tax Act 1983 (c.55)

18In section 22(4)(a)(ii) ("insolvency" for purposes of refund of tax in cases of bad debts), for the words " 163 of the Bankruptcy (Scotland) Act 1913 " there shall be substituted the words " 11A of the Judicial Factors (Scotland) Act 1889 ".

The Companies Act 1985 (c.6)

19(1)In section 613 (ranking of claims in Scotiand)—

(a)in subsection (1), for the words from " following provisions " to the end of paragraph (c) there shall be substituted the words—

“following enactments—

(a)sections 22 (except subsection (8)), 23(1) and (2),48 (except in so far as it relates to the application of section 22(8)), 49 and 50 of, and Schedule 1 to, the Bankruptcy (Scotland) Act 1985 (claims by creditors for voting and payment of dividends) ;

(b)paragraphs 11 and 13 of Schedule 6 to that Act (voting at meetings);

(c)section 60 of that Act (liabilities and rights of co-obligants); and

(d)sections 8(5) and 22(8) of that Act (including section 22(8) as applied by section 48(7) of that Act);”and

(b)in subsection (2)—

(i)for the word " 1913 " there shall be substituted the word " 1985 ";

(ii)for the word " trustee " there shall be substituted the words " interim or permanent trustee "; and

(iii)for the word " bankrupt " there, shall be substituted the word " debtor

20After section 615 there shall be inserted the following sections—

“615AGratuitous alienations.

(1)Where this subsection applies and—

(a)the winding up of a company has commenced, an alienation by the company is challengeable by—

(i)any creditor who is a creditor by virtue of a debt incurred on or before the date of such commencement; or

(ii)the liquidator ;

(b)an administration order is in force in relation to a company, an alienation by the company is challengeable by the administrator.

(2)Subsection (1) applies where—

(a)by the alienation, whether before or after the coming into force of section 75 of the Bankruptcy (Scotland) Act 1985, any part of the company's property is transferred or any claim or right of the company is discharged or renounced ; and

(b)the alienation takes place on a relevant day.

(3)For the purposes of subsection (2)(b), the day on which an alienation takes place is the day on which it becomes completely effectual ; and in that subsection " relevant day" means, if the alienation has the effect of favouring—

(a)a person who is an associate (within the meaning of the Bankruptcy (Scotland) Act 1985) of the company, a day not earlier than 5 years before the date on which—

(i)the winding up of the company commences ; or

(ii)as the case may be, the administration order is made ; or

(b)any other person, a day not earlier than 2 years before such date.

(4)Subsections (4) to (6) and (8) of section 34 of the Bankruptcy (Scotland) Act 1985 (challenge of gratuitous alienation) apply for the purposes of this section as they apply for the purposes of that section but as if—

(a)for any reference to the debtor there is substituted a reference to the company ; and

(b)in subsection (8) for the words: from the beginning to " 1889 " there are substituted the words " A liquidator and, after the coming into force of Chapter III of Part II of the Insolvency Act 1985, an administrator appointed thereunder ".

(5)In subsections (1) to (3) above, any reference to an administrator or to an administration order—

(a)shall be construed in accordance with Chapter III of Part II of the Insolvency Act 1985 ; and

(b)shall be of no effect until the coming into force of that Chapter.

(6)This section extends to Scotland only.

615BUnfair preferences.

(1)Section 36 of the Bankruptcy (Scotland) Act 1985 (unfair preferences) applies for the purposes of this Act as it applies for the purposes of that Act but as if—

(a)for any reference to a debtor there is substituted a reference to a company ;

(b)in subsection (1), for paragraphs (a) to (c) there are substituted the words " the commencement of the winding up of the company or the making of an administration order in relation to the company. ";

(c)in subsection (4) for paragraphs (d) and (b) there are substituted the following paragraphs—

“(a)in the case of a winding up—

(i)any creditor who is a creditor by virtue of a debt incurred on or before the date of commencement of the winding up ; or

(ii)the liquidator ; and (b) in the case of an administration order, the administrator.” ;

(d)in subsection (6), for the words from the beginning to " 1889 " there are substituted the words " A liquidator and an administrator "; and

(e)for subsection (7) there is substituted the following subsection—

“(7)This section shall be construed as one with Part XX of the Companies Act 1985 ; and subsection (5) of section 615A of that Act shall apply in relation to the foregoing provisions of this section as it applies in relation to subsections (1) to (3) of that section.”.

(2)This section applies to Scotland only.”

21For subsections (1) to (5) of section 623 (effect of diligence within 60 days of winding up Scottish company), there shall be substituted the following subsections—

“(1)In the winding up of a company registered in Scotland, the following provisions of the Bankruptcy (Scotland) Act 1985—

(a)subsections (1) to (6) of section 37 (effect of sequestration on diligence); and

(b)subsections (3), (4), (7) and (8) of section 39 (realisation of estate),

apply, so far as is consistent with this Act, in like manner as they apply in the sequestration of a debtor's estate, with the substitutions specified below and with any other necessary modifications.

(2)The substitutions to be made in those sections of the Act of 1985 are as follows—

(a)for references to the debtor, substitute references to the company,

(b)for references to the sequestration, substitute references to the winding up,

(c)for references to the date of sequestration, substitute references to the commencement of the winding up of the company, and

(d)for references to the permanent trustee, substitute references to the liquidator.

(3)In this section, " the commencement of the winding up of the company " means, where it is being wound up by the court, the day on which the winding up order is made.”.

22In section 643 (unclaimed dividends etc. in Scotland to be lodged in bank)—

(a)for the words " a joint stock bank of issue in Scotland" there shall be substituted the words " an appropriate bank or institution as defined in section 73(1) (interpretation) of the Bankruptcy (Scotland) Act 1985 ";

(b)after the word "bank" wherever it occurs there shall be inserted the words " or institution "; and

(c)for the words "one hundred and fifty-three of the Bankruptcy (Scotland) Act 1913 " there shall be substituted the words " 58 of the Bankruptcy (Scotland) Act 1985 ".

The Family Law (Scotland) Act 1985 (c.37)

23In section 14(5)(b) for the words from "sections 30" to "1913" there shall be substituted the words " section 41 of the Bankruptcy (Scotland) Act 1985 " .

PART IIRe-enactment of Certain Provisions of Bankruptcy (Scotland) Act 1913 (c.20)

Arrestments and Poindings

24(1)Subject to sub-paragraph (2) below, all arrestments and poindings which have been executed within 60 days prior to the constitution of the apparent insolvency of the debtor, or within four months thereafter, shall be ranked pari passu as if they had all been executed on the same date.

(2)Any such arrestment which is executed on the dependence of an action,shall be followed up without undue delay.

(3)Any creditor judicially producing in a process relative to the subject of such arrestment or poinding liquid grounds of debt or decree of payment within the 60 days or four months referred to in sub-paragraph (1) above shall be entitled to rank as if he had executed an arrestment or a poinding; and if the first or any subsequent arrester obtains in the meantime a decree of furthcoming, and recovers payment, or a poinding creditor carries through a sale, he shall be accountable for the sum recovered to those who, by virtue of this Act, may be eventually found to have a right to a ranking pari passu thereon, and shall be liable in an action at their instance for payment to them proportionately, after allowing out of the fund the expense of such recovery.

(4)Arrestments executed for attaching the same effects of the debtor after the period of four months subsequent to the constitution of his apparent insolvency shall not compete with those within the said periods prior or subsequent thereto, but may rank with each other on any reversion of the fund attached in accordance with any enactment or rule of law relating thereto.

(5)Any reference in the foregoing provisions of this paragraph to a debtor shall be construed as including a reference to an entity whose apparent insolvency may, by virtue of subsection (5) of section 7 of this Act, be constituted under subsection (1) of that section.

(6)This paragraph shall apply in respect of arrestments and poindings which have been executed either before or after the coming into force of this paragraph.

(7)The repeal of the Bankruptcy (Scotland) Act 1913 shall not affect the equalisation of arrestments and poindings (whether executed before or after the coming into force of this paragraph) in consequence of the constitution of notour bankruptcy under that Act.

Exemptions from stamp or other duties for conveyances, deeds etc. relating to sequestrated estates

25Any—

(a)conveyance, assignation, instrument, discharge, writing, or deed relating solely to the estate of a debtor which has been or may be sequestrated, either under this or any former Act, being estate which after the execution of such conveyance, assignation, instrument, discharge, writing, or deed, shall be and remain the property of such debtor, for the benefit of his creditors, or the interim or permanent trustee appointed or chosen under or by virtue of such sequestration,

(b)discharge to such debtor,

(c)deed, assignation, instrument, or writing for reinvesting the debtor in the estate,

(d)article of roup or sale, or submission,

(e)other instrument or writing whatsoever relating solely to the estate of any such debtor ; and

(f)other deed or writing forming part of the proceedings ordered under such sequestration,

shall be exempt from all stamp duties or other Government duty.

Section 75(2).

SCHEDULE 8Repeals