Article 32 - Power to deal with property subject to a Security Interest, etc.
(1) Where, on an application by the
Administrator, the QFC Court is satisfied that the disposal by the Administrator (with or without other assets) of:
(A) any property of the
Company subject to a Security Interest; or
(B) any goods in the possession of the
Company under a hire-purchase agreement
would be likely to promote one or more of the purposes of the administration the
QFC Court may by order authorise the Administrator to dispose of the property as if it were not subject to the Security Interest or to dispose of the goods as if all rights of the owner under the hire-purchase agreement were invested in the Company.,
(2) It shall be a condition of an order under Article 32(1) that:
(A) the net proceeds of the disposal; and
(B) where those proceeds are less than such amount as may be determined by the
QFC Court to be the net amount which would be realised on a sale of the property or goods in the open market by a willing vendor, such sums as may be required to make good the deficiency
shall be applied towards discharging the sums secured by the
Security Interest or payable under the hire-purchase agreement.
(3) Where a condition imposed in pursuance of Article 32(2) relates to two or more securities, that condition requires the net proceeds of the disposal and, where Article 32(2)(B) applies, the sums mentioned to be applied towards discharging the sums secured by those
Security Interests in the order of their priorities.
(4) A copy of an order under Article 32(1) shall, within 14 days after the making of the order, be sent by the
Administrator to the CRO.
(5) If the
Administrator without reasonable excuse fails to comply with Article 32(4), he commits a contravention and is liable to a fine.
(6) References in this Article 32 to hire-purchase agreements include conditional sale agreements, leasing agreements relating to property other than real property and retention of title agreements.