Interpretation
Section 314: Obtaining and disposing of property
441.‘Disposing’ of property is a key feature of the provisions at section 304 and 305, which deal with following and tracing property. Disposal of property may take place, for instance:
where the property is dealt with to some extent only (including where an interest in the property is created – for example where a tenancy is granted out of freehold real property); a disposal might also consist of the grant of an interest in a part (subsection (1));
where a person makes a payment, in cash or any other kind of property, to another (subsection (2));
where property changes hands on death (subsection (3)).
442.Subsection (4) is relevant to the protection provided at section 308(1) for persons who obtain property ‘for value’. It provides that a person obtains property ‘for value’ only when he has given executed consideration for it. That means that if someone obtains property in return for a promise to pay for it or to perform some service in exchange, that will not count as having ‘obtained for value’ until the payment is actually made or the service performed.
Section 315: Northern Ireland: courts
443.The Act relies upon procedural mechanisms contained in the Civil Procedure Rules for England and Wales. These do not apply in Northern Ireland. Further, the relevant rules of court in Northern Ireland have recently been the subject of a review and a number of changes have been recommended but not yet implemented. It is not therefore possible at this stage to specify the exact terms for the procedural mechanisms that will apply to civil recovery. Against that background it is necessary to provide that the expressions relating to the initiation and conduct of proceedings used in this Part of the Act are to be read in accordance with rules of court made in Northern Ireland. Such rules of court would be made under section 55 of the Judicature (Northern Ireland) Act 1978.
Section 316: General interpretation
444.Subsection (1) defines certain terms used in this Part of the Act. Subsection (3) enables property to be identified and traced by reference to events occurring before commencement of this Part. Subsections (4) to (7) explain the use of the terms ‘property’ and ‘holding property.’
