172Effect of protected status: generalS
(1) Where a trust deed has protected status then—
(a)subject to section 177, a creditor who (either or both)—
(i)is not a notified creditor, or
(ii)notified the trustee, during the relevant period, of objection to the trust deed,
has no higher right to recover the debt than a creditor who has acceded to, or been deemed by virtue of section 170(2) to have acceded to, the trust deed, and
(b)an application for sequestration of the debtor's estate may not be made by the debtor while the trust deed subsists.
(2)A creditor ceases to be deemed (by virtue of section 170(2)) to have acceded to a trust deed [F1if AiB agrees that the debtor should not be discharged from the trust deed under section 184A].
(3)Where a secured creditor's agreement has been obtained by virtue of section 166(2)(b) and the trust deed becomes a protected trust deed, that creditor is not entitled—
(a)to make a claim under the protected trust deed for any of the debt in respect of which the security is held,
(b)to do diligence against the assets conveyed to the trustee under the protected trust deed, or
(c)to petition for the sequestration of the debtor during the subsistence of the protected trust deed.
Textual Amendments
F1Words in s. 172(2) substituted (1.7.2024) by The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 (S.S.I. 2024/198), regs. 1(1), 5(2)
Commencement Information
I1S. 172 in force at 30.11.2016 by S.S.I. 2016/294, reg. 2