Article 206 - Administration
(1) The following Articles (which relate to administrations) do not apply in relation to a market charge:
(A) Articles 26(1)(C) and 27(2)(C) (restriction on enforcement of security while application for
Administration Order pending or order in force); and
(B) Article 32 (power of
Administrator to deal with charged property).
(2) However, where a market charge falls to be enforced after an
Administrator has been appointed, an application for an Administration Order has been made or notice of intention to appoint an Administrator has been given, and there exists another charge over some or all of the same property ranking in priority to or pari passu with the market charge, the QFC Court may order that there shall be taken after enforcement of the market charge such steps as the QFC Court may direct for the purpose of ensuring that the chargee under the other charge is not prejudiced by the enforcement of the market charge.
(3) Article 81 (avoidance of property dispositions effected after commencement of winding up), does not apply to a disposition of property as a result of which the property becomes subject to a market charge or any transaction pursuant to which that disposition is made.
(4) However, if a person (other than the chargee under the market charge) who is party to a disposition mentioned in Article 206(4) has notice at the time of the disposition that an application has been made for the winding up of the party making the disposition, the value of any profit to him arising from the disposition is recoverable from him by the relevant officeholder unless the
QFC Court directs otherwise.
(5) In a case falling within both Article 206(4) (as a disposition of property as a result of which the property becomes subject to a market charge) and Article 200(3) (as the provision of margin in relation to a market contract), Article 200(4) applies with respect to the recovery of the amount or value of the margin and Article 206(5) above does not apply.