Section 269: Rights of pre-emption, etc
355.Subsection (1) establishes that a recovery order will override any provisions that would otherwise prevent, penalise or restrict the vesting of the property in the trustee for civil recovery. Under subsection (2), rights relating to the property such as those specified here do not automatically come into effect or become exercisable as a result of the vesting of the property. However, under subsection (3), following a recovery order, any such rights will continue to have effect when the property is vested as if no transfer of property has taken place. This applies to any interests created by the recovery order (see section 272(3)(b)), as well as any interests transferred by the order. So a person who has the first right to buy property when it changes hands will not be able to exercise his right to prevent the vesting of recoverable property in the trustee by the recovery order. But he will have first right to buy the property when the trustee, or other person in whom the recovery order vests it, comes to sell it on (paragraph 1ofSchedule 7 gives the trustee the power of sale). Under subsection (4), the protections provided for any of the rights referred to in subsections (2) and (3) do not apply if the right itself is the subject of a recovery order.
356.If a person holding such rights suffers loss as a result of property vesting in the trustee, he may apply to the court for compensation under section 283(6) and the court may require compensation to be paid under section 283(8).
