Company Voluntary Arrangements (CVAs) - Law - CVA with a moratorium
Schedule A1 - Insolvency Act 1986 - Paragraph 21
In Scotland Paragraph 20 of Schedule A1 of The Insolvency Act 1986 provides the necessary amendments to the insolvency law "wording" in order that Scottish security law is addressed when a sale of charged property in a CVA moratorium period is under consideration in a Scottish context.
The actual wording of Paragraph 21 of Schedule A1 to The Insolvency Act 1986 is reproduced below in bold.
21. 1) Where property is disposed of under paragraph 20 in its application to Scotland, the company shall grant to the disponee an appropriate document of transfer or conveyance of the property, and
(a) that document, or
(b) where any recording, intimation or registration of the document is a legal requirement for completion of title to the property, that recording, intimation or registration,
has the effect of disencumbering the property of, or (as the case may be) freeing the property from, the security.
(2) Where goods in the possession of the company under a hire-purchase agreement are disposed of under paragraph 20 in its application to Scotland, the disposal has the effect of extinguishing, as against the disponee, all rights of the owner of the goods under the agreement.
Scotland - Company Voluntary Arrangements - CVA - Sale of Charged Property - Sale in the CVA moratorium period - Paragraph 21 Schedule A1 Insolvency Act 1986.