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(1)The Authority may present a petition to the court—
(a)under section 264 of the 1986 Act (or Article 238 of the 1989 Order) for a bankruptcy order to be made against an individual; or
(b)under section 5 of the 1985 Act for the sequestration of the estate of an individual.
(2)But such a petition may be presented only on the ground that—
(a)the individual appears to be unable to pay a regulated activity debt; or
(b)the individual appears to have no reasonable prospect of being able to pay a regulated activity debt.
(3)An individual appears to be unable to pay a regulated activity debt if he is in default on an obligation to pay a sum due and payable under an agreement.
(4)An individual appears to have no reasonable prospect of being able to pay a regulated activity debt if—
(a)the Authority has served on him a demand requiring him to establish to the satisfaction of the Authority that there is a reasonable prospect that he will be able to pay a sum payable under an agreement when it falls due;
(b)at least three weeks have elapsed since the demand was served; and
(c)the demand has been neither complied with nor set aside in accordance with rules.
(5)A demand made under subsection (4)(a) is to be treated for the purposes of the 1986 Act (or the 1989 Order) as if it were a statutory demand under section 268 of that Act (or Article 242 of that Order).
(6)For the purposes of a petition presented in accordance with subsection (1)(b)—
(a)the Authority is to be treated as a qualified creditor; and
(b)a ground mentioned in subsection (2) constitutes apparent insolvency.
(7)“Individual” means an individual—
(a)who is, or has been, an authorised person; or
(b)who is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
(8)“Agreement” means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the individual concerned.
(9)“Rules” means—
(a)in England and Wales, rules made under section 412 of the 1986 Act;
(b)in Scotland, rules made by order by the Treasury, after consultation with the Scottish Ministers, for the purposes of this section; and
(c)in Northern Ireland, rules made under Article 359 of the 1989 Order.
Commencement Information
I1S. 372 wholly in force at 1.12.2001; s. 372 not in force at Royal Assent see s. 431(2); s. 372 in force for certain purposes at 20.7.2001 by S.I. 2001/2632, art. 2(1), Sch. Pt. 1; s. 372 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)