38A Hire purchase etc. agreement.

1

Goods—

a

bailed under a hire-purchase agreement or a consumer hire agreement, or

b

agreed to be sold under a conditional sale agreement, or

c

subject to a regulated agreement under which a bill of sale is given by way of security.

shall not be treated as the property of the bankrupt during the period between the service of a default notice under the Consumer Credit Act 1974 in respect of the goods and the date on which the notice expires or is earlier complied with.

2

In this section—

• “conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;

• “consumer hire agreement ” has the meaning given by section 15 of the Consumer Credit Act 1974;

• “hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—

a

goods are bailed in return for periodical payments by the person to whom they are bailed, and

b

the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—

i

the exercise of an option to purchase by that person,

ii

the doing of any other specified act by any party to the agreement,

iii

the happening of any other specified event; and “regulated agreement ” has the meaning given by section 189(1) of the Consumer Credit Act 1974.