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10(1)This paragraph applies where—
(a)any property held subject to a floating charge by a company is property which is subject to a freezing order; and
(b)a receiver has been appointed by, or on the application of, the holder of the charge (a “floating charge receiver”).
(2)The powers of the floating charge receiver shall not be exercisable in relation to so much of the property as is for the time being subject to a relevant order.
(3)If the floating charge receiver was appointed before the freezing order was made, the powers conferred on the court by paragraphs 1, 2, 4 and 5 above, and the powers of a receiver appointed under paragraph 5(2) above, shall not be exercised in the way mentioned in sub-paragraph (4) below in relation to any property—
(a)which is held by the company; and
(b)in relation to which the functions of the floating charge receiver are exercisable.
(4)The powers shall not be exercised—
(a)so as to inhibit the floating charge receiver from exercising functions of the floating charge receiver for the purpose of distributing property to the company’s creditors;
(b)so as to prevent the payment out of any property of expenses (including the remuneration of the floating charge receiver) properly incurred in the exercise of the floating charge receiver’s functions in respect of the property.
(5)Nothing in the 1986 Act shall be taken to restrict (or enable the restriction of) the exercise of the powers conferred on a receiver so appointed.
(6)In this paragraph—
“floating charge” includes a floating charge within the meaning of section 462 of the Companies Act 1985 (c. 6) (power of incorporated company to create floating charges); and
“relevant order” means—
in relation to heritable property situated in Scotland, a warrant for inhibition—
registered, by virtue of paragraph 6(2)(b) above, in the Register of Inhibitions and Adjudications; and
taking effect before the appointment of the floating charge receiver; and
in relation to any other property, a freezing order made before such appointment.
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Text created by the Scottish Executive department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills
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