PART 3REGISTRATION AND EFFECT OF PROTECTION
Effect of protected status12
1
Where a trust deed has become a protected trust deed then—
a
subject to regulation 17, a creditor who (either or both)—
i
is not a notified creditor; or
ii
notified the trustee of objection to the trust deed during the relevant period,
has no higher right to recover the debt than a creditor who has acceded to, or been deemed by virtue of regulation 10(2) 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
A creditor ceases to be deemed to have acceded to a trust deed in terms of regulation 10(2) if the trustee refuses a request by the debtor to apply to the Accountant for discharge in terms of regulation 24(8).
3
Where a secured creditor’s agreement has been obtained under regulation 6(c) and the trust deed becomes a protected trust deed, that creditor is not entitled—
a
to make a claim under the protected trust deed for any of the debt in respect of which the security is held;
b
to do diligence against the assets conveyed to the trustee under the protected trust deed; or
c
to petition for the sequestration of the debtor during the subsistence of the protected trust deed.