(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—
“17AParagraph 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)”.”