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Bankruptcy and Diligence etc. (Scotland) Act 2007

New section 9K – Articles belonging to or owned in common by a third party

546.Section 9K(1) provides that the court may make an order releasing an article from an interim attachment where it is satisfied a third party owns the article.

547.Subsection (2) gives the court similar power to release an article from an interim attachment where the court is satisfied that a third party owns the article in common with the debtor and that the continued attachment of the article in question would be unduly harsh to the third party.

548.Subsection (3) applies section 34(2) of the 2002 Act where a third party claims sole ownership of the article as it applies where a third party makes an application for the purposes of section 34(1)(b)(ii). This has the effect of preserving a third party’s rights so that that the third party is not precluded from taking any other proceedings for the recovery of the article.

549.Subsection (4) provides that, where the interim attachment of an article ceases to have effect under subsection (1) or (2), the judicial officer may attach other articles which are owned by the debtor and kept at the place at which the original interim attachment was executed.

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