61 Extortionate credit transactions.S
(1)This section applies where the debtor is or has been a party to a transaction for, or involving, the provision to him of credit and his estate is sequestered.
(2)The [F1sheriff] may, on the application of the F2. . . trustee, make an order with respect to the transaction if the transaction is or was extortionate and was not entered into more than three years before the date of sequestration.
(3)For the purposes of this section a transaction is extortionate if, having regard to the risk accepted by the person providing the credit—
(a)the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit; or
(b)it otherwise grossly contravened ordinary principles of fair dealing; and it shall be presumed, unless the contrary is proved, that a transaction with respect to which an application is made under this section is, or as the case may be was, extortionate.
(4)An order under this section with respect to any transaction may contain such one or more of the following as the [F1sheriff] thinks fit—
(a)provision setting aside the whole or part of any obligation created by the transaction;
(b)provision otherwise varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held;
(c)provision requiring any person who is a party to the transaction to pay to the F2. . . trustee any sums paid to that person, by virtue of the transaction, by the debtor;
(d)provision requiring any person to surrender to the F2. . . trustee any property held by him as security for the purposes of the transaction;
(e)provision directing accounts to be taken between any persons.
(5)Any sums or property required to be paid or surrendered to the F2. . . trustee in accordance with an order under this section shall vest in the F2. . . trustee.
(6)F3. . . The powers conferred by this section shall be exercisable in relation to any transaction concurrently with any powers exercisable under this Act in relation to that transaction as a gratuitous alienation or unfair preference.
(7)In this section “credit” has the same meaning as in the said Act of 1974.
Textual Amendments
F1Words in s. 61 substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 55 (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F2Words in s. 61 repealed (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 6 Pt. 1 (with s. 223); S.S.I. 2008/115, art. 3(2)(3), Sch. 2 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F3Words in s. 61(6) repealed (6.4.2007) by Consumer Credit Act 2006 (c. 14), ss. 70, 71, Sch. 4 (with Sch. 3 para. 15(5)); S.I. 2007/123, art. 3(2), Sch. 2 (as amended by S.I. 2007/387, art. 2(3)(e)(iii))
Modifications etc. (not altering text)
C1S. 61 applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2(1), Sch. 1 Article 23 paras. 1-3 (subject to paras. 6, 9)