Search Legislation

The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024

Draft Legislation:

This is a draft item of legislation. This draft has since been made as a Scottish Statutory Instrument: The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 No. 198

Removal of protected status where material error or irregularity

This section has no associated Policy Notes

3.—(1) The 2016 Act is amended as follows.

(2) In section 171(2)(b) (registration for protected status), at the beginning insert “AiB is satisfied that”.

(3) After section 171 (registration for protected status), insert—

Removal of protected status where material error or irregularity

171A    Removal of protected status where material error or irregularity

(1) If, within 3 months of the trust deed being registered in the register of insolvencies under section 171(2), the trustee becomes aware that any of the conditions set out in sections 164, 165, 166(2) (where it applied) or 167 to 170 were not met at the point of registration due to a material error or irregularity, the trustee must notify AiB.

(2) Where AiB is notified under subsection (1), AiB must decide whether the trust deed should cease to have protected status (see section 163).

(3) If AiB decides under subsection (2) that the trust deed should cease to have protected status AiB must, as soon as reasonably practicable, notify the trustee and the debtor in writing of that decision.

(4) Where the trustee receives a notification under subsection (3) the trustee must, as soon as reasonably practicable, notify every creditor known to the trustee (other than any secured creditor who has, as mentioned in paragraph (b)(ii) of the trust deed definition, agreed not to claim under the trust deed for any of the debt in respect of which the security is held).

(5) A notice under subsection (3) or (4) must state—

(a)the fact that a decision under subsection (2) has been made,

(b)the date on which the decision was made, and

(c)the ground or grounds for the decision.

(6) Where a notice is issued under subsection (3)—

(a)the trust deed ceases to have protected status 14 days after that notice is given (but see section 171B), and

(b)AiB must, as soon as reasonably practicable, remove the entry for the trust deed in the register of insolvencies.

171B    Decision under section 171A: application to review

(1) The debtor, the trustee or a creditor may apply to AiB for a review of its decision under section 171A(2).

(2) An application under subsection (1) must be made within 14 days beginning with the date that decision was notified under section 171A(3).

(3) If an application for review under subsection (1) is made, AiB’s decision under section 171A(2) is suspended until the determination of that review by AiB.

(4) If an application for a review under subsection (1) is made, AiB must—

(a)confirm or revoke the decision within 21 days beginning with the day on which the application is made, and

(b)notify the debtor, the trustee and (where relevant) the creditor who made the application under subsection (1) of the outcome.

(5) If, under subsection (4), AiB—

(a)confirms a decision, the decision takes effect 21 days after the day on which AiB notifies the debtor, the trustee and (where relevant) the creditor who made the application under subsection (1) of the outcome of its review,

(b)revokes a decision, the decision is of no effect.

(6) The trustee must, as soon as reasonably practicable following receipt of a notification under subsection (4), notify the outcome of the review to every creditor known to the trustee.

171C    Effect of removal of protected status

A trust deed ceasing to have protected status by virtue of a decision under section 171A is not to—

(a)invalidate any acts of the trustee between the date the trust deed was registered and the date a decision under section 171A takes effect,

(b)prevent the trust deed from re-attaining protected status provided the conditions in sections 164-170, so far as applicable, are met, or

(c)prevent the debtor from—

(i)making a debtor application under section 2 or, as the case may be, 6,

(ii)applying for a moratorium under section 195 or, as the case may be, 196,

(iii)applying for a debt payment programme within the meaning of section 2 of the 2002 Act..

(4) In section 188 (protected trust deed: appeal)—

(a)after subsection (2), insert—

(2A) The persons mentioned in subsection (2B) may appeal to the sheriff against the outcome of any review undertaken by AiB under section 171B.

(2B) The persons are—

(a)the trustee,

(b)the debtor,

(c)any creditor.

(2C) Where an appeal is brought under subsection (2A), AiB’s determination on a review under section 171B is suspended until the determination of that appeal.,

(b)in subsection (5), after “subsection (1)”, insert “or (2A)”.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Draft Policy Note

Draft Policy Note sets out a brief statement of the purpose of a Draft Scottish Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Draft Scottish Statutory Instrument accessible to readers who are not legally qualified and accompany any Scottish Statutory Instrument or Draft Scottish Statutory Instrument laid before the Scottish Parliament from July 2012 onwards. Prior to this date these type of notes existed as 'Executive Notes' and accompanied Draft Scottish Statutory Instruments from July 2005 until July 2012.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources