State scheme premiumsE+W+S
3(1)[F1This Schedule applies to] any sum owed on account of a state scheme premium payable at any time before, or in consequence of, [F2a person going into liquidation or being adjudged bankrupt][F3the sequestration of a debtor’s estate][F4or (in the case of a company not in liquidation)—
(a)the appointment of a receiver as mentioned in section 40 of the Insolvency Act 1986 (debenture-holders secured by floating charge), or
(b)the appointment of a receiver under section 53(6) or 54(5) of that Act (Scottish company with property subject to floating charge), or
(c)the taking of possession by debenture-holders (so secured) as mentioned in section 196 of the Companies Act 1985].
(2)Where any such premium is payable in respect of a period of service of more than twelve months (taking into account any previous linked qualifying service), the amount to be paid in priority by virtue of this paragraph shall be limited to the amount of the premium that would have been payable if the service had been confined to the last twelve months taken into account in fixing the actual amount of the premium.
(3)Where—
(a)by virtue of this paragraph the whole or part of a premium is required to be paid in priority to other debts of the debtor or his estate; and
(b)the person liable for the payment would be entitled to recover the whole or part of any sum paid on account of it from another person either under section 47 of this Act or under any provision made by the relevant scheme for the purposes of that section or otherwise,
that other person shall be liable for any part of the premium for the time being unpaid; but so that no person shall be liable by virtue of this sub-paragraph for an amount in excess of the sum which might thereunder be recovered from him if the premium had been paid in full by the person liable for it, after deducting from that sum any amount which has been or may be recovered from him in respect of any part of that payment paid otherwise than under this sub-paragraph.
(4)The payment under sub-paragraph (3) above of any amount in respect of a premium shall have the same effect on the rights and liabilities of the person making it (other than his liabilities under that sub-paragraph) as if it had been a payment of that amount on account of the sum recoverable from him in respect of a premium as mentioned in sub-paragraph (3)(b) above.
Textual Amendments
F1Words substituted (with effect from 29.12.1986) by Insolvency Act 1985 (c. 65), Sch. 8, para. 26(2)
F2Words substituted (with effect from 29.12.1986) for company insolvency in Great Britain and for Bankruptcy in England and Wales, by Insolvency Act 1985 (c. 65), Sch. 8 para. 26(3)
F3Words substituted (with effect from 29.12.1986) for bankruptcy in Scotland, by Bankruptcy (Scotland) Act 1985 (c. 66), Sch. 7, para. 13(i)
F4Words added (with effect from 29.12.1986) by Insolvency Act 1986 (c. 45), Sch. 14