PART 4

Trustees and commissioners

Interim trustees

Termination of interim trustee's functions where not appointed trustee
56
1
This section applies where an interim trustee (not being AiB) is appointed under section 54(1) and the sheriff—
a
awards sequestration and appoints another person as trustee under subsection (5) or (7) of section 51, or
b
refuses to award sequestration.
2
Where the sheriff awards sequestration and appoints another person as trustee in the sequestration, the interim trustee—
a
must hand over to the other person everything in the interim trustee's possession which relates to the sequestration, and
b
on that being done, must cease to act in the sequestration.
3
The sheriff may make such order in relation to liability for the outlays and remuneration of the interim trustee as may be appropriate.
4
Within 3 months after the sheriff awards, or refuses to award, sequestration the interim trustee must—
a
submit to AiB—
i
the interim trustee's accounts for intromissions (if any) with the debtor's estate,
ii
a claim for outlays reasonably incurred by the interim trustee, and
iii
a claim for remuneration for work reasonably undertaken by the interim trustee, and
b
send a copy of the interim trustee's accounts and claims to—
i
the debtor,
ii
the petitioner, and
iii
in a case where sequestration is awarded, the trustee and all creditors known to the interim trustee.
5
On a submission being made under subsection (4)(a), AiB must—
a
audit the accounts,
b
issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee,
c
send a copy of the determination to—
i
the interim trustee, and
ii
the persons mentioned in subsection (4)(b), and
d
where a trustee (not being AiB) is appointed in the sequestration, send a copy of the audited accounts and of the determination to the trustee.
6
On receiving a copy of the determination sent under subsection (5)(c)(i), the interim trustee may apply to AiB for a certificate of discharge.
7
The grant of a certificate of discharge under this section by AiB has the effect of discharging the interim trustee from all liability (other than any liability arising from fraud)—
a
to the debtor,
b
to the petitioner, or
c
to the creditors,
in respect of any act or omission of the interim trustee in exercising the functions conferred on the interim trustee by this Act.