Any assignation of or charge on, or agreement to assign or charge, any benefit under these Regulations is void.

On the sequestration of the estate of a person entitled to any such benefit or on the bankruptcy of such a person, no part of the benefit passes to any trustee or other person acting on behalf of the creditors, except as provided in paragraph (3).

Nothing in paragraph (2) affects the powers of the Court under section 32(2) and (4) of the Bankruptcy (Scotland) Act 198529 or under section 310 of the Insolvency Act 198630.