Article 96 - Position of creditors
(1) The rights of creditors of a
PCC shall correspond with the liabilities provided for in Article 103.
(2) No such creditor shall have any rights other than the rights referred to in this Article 96 and in Articles 97 and 103.
(3) There shall be implied (except insofar as the same is expressly excluded in writing) in every transaction entered into by a
PCC the following terms:
(A) that no party shall seek, whether in any proceedings or by any other means whatsoever or wheresoever, to make or attempt to use any
Cellular Assets attributable to any Cell of the PCC to satisfy a liability not attributable to that Cell;
(B) that if any party succeeds by any means whatsoever or wheresoever in using any
Cellular Assets attributable to any Cell of the PCC to satisfy a liability not attributable to that Cell, that party shall be liable to the PCC to pay a sum equal to the value of the benefit thereby obtained by him; and
(C) that if any party succeeds in seizing or attaching by any means or otherwise levying execution against any
Cellular Assets attributable to any Cell of the PCC to satisfy a liability not attributable to that Cell, that party shall hold those assets or their proceeds on trust for the PCC and shall keep those assets or proceeds separate and identifiable as such trust property.
(4) All sums recovered by a
PCC as a result of any such trust as is described in Article 96(3)(C) shall be credited against any concurrent liability imposed under the implied term set out in Article 96(3)(B).
(5) Any asset or sum recovered by a
PCC under the implied term set out in Article 96(3)(B) or 96(3)(C) or by any other means whatsoever or wheresoever in the events referred to in those Articles shall, after the deduction or payment of any costs of recovery, be applied by the PCC so as to compensate the Cell affected.
(6) In the event of any
Cellular Assets attributable to a Cell of a PCC being taken in execution in respect of a liability not attributable to that Cell, and insofar as such assets or compensation in respect thereof cannot otherwise be restored to the Cell affected, the PCC shall:
(A) cause or procure its auditor, acting as expert and not as arbitrator, to certify the value of the assets lost by the
Cell affected; and
(B) transfer or pay to the
Cell affected, from the Cellular or Non-Cellular Assets to which the liability was attributable, assets or sums sufficient to restore to the Cell affected the value of the assets lost.
(7) Where under Article 96(6)(B) a
PCC is obliged to make a transfer or payment from Cellular Assets attributable to a Cell of the PCC, and those assets are insufficient, the PCC shall so far as possible make up the deficiency from its Non-Cellular Assets.
(8) This Article shall apply to
Cellular and Non-Cellular Assets of a PCC wherever situated and notwithstanding any statutory provision or rule of law to the contrary.
|Amended (as from 5th April 2015).|