Part 9

Insolvency etc.

Sequestration in Scotland

Tainted gifts
422
1
This section applies if a person whose estate is sequestrated in Scotland has made a tainted gift (whether directly or indirectly).
2
No decree may be granted under the Bankruptcy Act 1621 (c. 18) or section 34 or 36 of the 1985 Act (gratuitous alienations and unfair preferences), or otherwise, in respect of the making of the gift at any time when—
a
any property of the recipient of the tainted gift is subject to a restraint order under section 41, 120 or 190, or
b
there is in force in respect of such property an order under section 50, 52, 128(3), 198 or 200.
3
Any decree made under the Bankruptcy Act 1621 (c. 18) or section 34 or 36 of the 1985 Act, or otherwise, after an order mentioned in subsection (2)(a) or (b) is discharged must take into account any realisation under Part 2, 3 or 4 of this Act of property held by the recipient of the tainted gift.
4
A person makes a tainted gift for the purposes of this section if he makes a tainted gift within the meaning of Part 2, 3 or 4.