Part 3

Protection for learners
Chapter 2

Education administration and administration of further education bodies

Further education bodies in education administration: transfer schemes
25
1
The Technical and Further Education Act 2017 is amended as follows.
2
In Schedule 2 (education administration: transfer schemes), after paragraph 6 insert—
6A
1
A transfer scheme may not transfer property which is subject to a security (other than a floating charge) free of that security except—
a
in accordance with an order of the court under paragraph 71 of Schedule B1 to the Insolvency Act 1986 as applied by Schedule 3 or 4, or
b
where—
i
an amount is attributed to the transfer of the property in the transfer scheme,
ii
the secured creditor agrees with that amount, and
iii
the secured creditor is paid that amount.
2
In sub-paragraph (1), “floating charge” means a charge which is a floating charge on its creation.
3
In Schedule 3 (conduct of education administration: statutory corporations), in paragraph 19—
a
for “sub-paragraph (1),” substitute
sub-paragraph (1)—
a
after “dispose” there were inserted “(whether by way of a transfer scheme under Schedule 2 to the Technical and Further Education Act 2017 or otherwise)”, and
;
b
the text from “the words” to the end of the paragraph becomes paragraph (b).
4
In Schedule 4 (conduct of education administration: companies), after paragraph 17 insert—
17A
Paragraph 71 is to have effect as if in sub-paragraph (1), after “dispose” there were inserted “(whether by way of a transfer scheme under Schedule 2 to the Technical and Further Education Act 2017 or otherwise)”.