Part 5Charges over a society's assets

CHAPTER 3Receiver or manager of society's property

65English and Welsh societies: restriction on appointment of administrative receiver

1

The holder of a qualifying floating charge in respect of the property of a relevant society whose registered office is situated in England and Wales may not appoint an administrative receiver of the society.

2

This section applies to a floating charge which is created by a relevant society on or after 6th April 2014 and is either—

a

a charge in respect of which an application under section 59 has been made; or

b

a charge created by a debenture registered under section 9 of the Agricultural Credits Act 1928 as applied by section 14 of that Act.

3

This section applies in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name).

4

In this section—

  • “administrative receiver”, in relation to a relevant society, means—

    1. a

      a receiver or manager of the whole (or substantially the whole) of the society's property appointed by or on behalf of the holder of a floating charge, or by such a charge and one or more other securities, or

    2. b

      a person who would be such a receiver or manager but for the appointment of some other person as the receiver of part of the society's property;

  • “holder of a qualifying floating charge in respect of the property of a relevant society” has the meaning given in paragraph 14 of Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by an order under section 118;

  • “relevant society” means a registered society which is not—

    1. a

      a private registered provider of social housing; or

    2. b

      registered as a social landlord under Part 1 of the Housing Act 1996 or under Part 2 of the Housing (Scotland) Act 2010.