SCHEDULE 6 Freezing orders in respect of property liable to forfeiture

8Sequestration

1

Where the estate of a person is sequestrated—

a

property for the time being subject to a freezing order made before the date of sequestration (within the meaning of section F5 22(7) of the 2016 Act); and

b

any proceeds of property realised by virtue of paragraph 5(2) above for the time being in the hands of a receiver appointed under that paragraph,

is excluded from the debtor’s estate for the purposes of that Act.

2

Where an award of sequestration is made before a freezing order is made, the powers conferred on a receiver appointed under paragraph 5(2) above shall not be exercised in relation to—

a

property for the time being comprised in the whole estate of the debtor (within the meaning of section F679(1) of the 2016 Act);

b

any income of the debtor which has been ordered under section F490 of that Act to be paid to the permanent trustee; or

c

any estate which under section F779(4) or 86(5) of that Act vests in the trustee in the sequestration;

and it shall not be competent to submit a claim in relation to the freezing order to the interim trustee in accordance with section F346 of that Act or the trustee in the sequestration in accordance with section 122 of that Act.

3

Nothing in the F12016 Act shall be taken as restricting, or enabling the restriction of, the exercise of the powers conferred on a receiver so appointed.

4

Where, during the period before sequestration is awarded, an interim trustee stands appointed under section F254(1) of the 2016 Act and any property in the debtor’s estate is subject to a freezing order, the powers conferred on the interim trustee by virtue of that Act do not apply to property for the time being subject to the freezing order.

F85

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