9(1)The debtor shall be held to be in default in any of the following circumstances, that is to say—
(a)where a calling-up notice in respect of the security has been served and has not been complied with;
(b)where there has been a failure to comply with any other requirement arising out of the security;
(c)where the proprietor of the security subjects has become insolvent.
(2)For the purposes of this condition, the proprietor shall be taken to be insolvent if—
(a)he has become notour bankrupt, or he has executed a trust deed for behoof of, or has made a composition contract or arrangement with, his creditors;
(b)he has died and a judicial factor has been appointed under section [F111A of the Judicial Factors (Scotland) Act 1889] to divide his insolvent estate among his creditors, [F2or his estate falls to be administered in accordance with an order under section [F3421 of the Insolvency Act 1986]];
(c)where the proprietor is a company, a winding-up order has been made with respect to it, or a resolution for voluntary winding-up (other than a members’ voluntary winding-up) has been passed with respect to it, or a receiver or manager of its undertaking has been duly appointed, or possession has been taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge.
Textual Amendments
F1Words substituted by Bankruptcy (Scotland) Act 1985 (c. 66, SIF 11:2), s. 75(1), Sch. 7 para. 8
F2Words from “or his estate” to “Act 1986” substituted by virtue of Insolvency Act 1985 (c. 65, SIF 11:1), Sch. 8 para. 18
F3Words substituted by virtue of Insolvency Act 1986 (c. 45, SIF 66), s. 443, Sch. 14