F29Initial stages of sequestration
18 Interim preservation of estate.
1
The interim trustee may F1, in pursuance of the function conferred on him by section 2(6A) of this Act, give general or particular directions to the debtor relating to the management of the debtor’s estate.
2
In exercising the F2function conferred on him by section F32(6A) of this Act, an interim trustee may—
a
require the debtor to deliver up to him any money or valuables, or any document relating to the debtor’s business or financial affairs, belonging to or in the possession of the debtor or under his control;
b
place in safe custody anything mentioned in paragraph (a) above;
c
require the debtor to deliver up to him any perishable goods belonging to the debtor or under his control and may arrange for the sale or disposal of such goods;
d
make or cause to be made an inventory or valuation of any property belonging to the debtor;
e
require the debtor to implement any transaction entered into by the debtor;
f
effect or maintain insurance policies in respect of the business or property of the debtor;
g
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5h
carry on any business of the debtor or borrow money in so far as it is necessary for the interim trustee to do so to safeguard the debtor’s estate.
F62A
Section 43 of this Act applies to an interim trustee as it applies to a trustee.
3
The F7sheriff , on the application of the interim trustee, may—
F8a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
on cause shown, grant a warrant authorising the interim trustee to enter the house where the debtor resides or his business premises and to search for and take possession of anything mentioned in paragraphs (a) and (c) of subsection (2) above, if need be by opening shut and lock-fast places; or
c
make such other order to safeguard the debtor’s estate as F9he thinks appropriate.
4
The F10sheriff , on an application by the debtor on the grounds that a direction under subsection (1) above is unreasonable, may—
a
if F11he considers the direction to be unreasonable, set aside the direction; and
b
in any event, give such directions to the debtor regarding the management of his estate as F11he considers appropriate;
but, subject to any interim order of the F10sheriff , the debtor shall comply with the direction appealed against pending the final determination of the appeal.
5
The debtor shall be guilty of an offence if—
a
he fails without reasonable excuse to comply with—
i
a direction under subsection (1) or (4)(b) above; or
ii
a requirement under subsection (2)(a), (c) or (e) above; or
b
he obstructs the interim trustee where the interim trustee is acting in pursuance of subsection (3)(b) above.
6
A person convicted of an offence under subsection (5) above shall be liable—
a
on summary conviction to a fine not exceeding the statutory maximum or—
i
to imprisonment for a term not exceeding 3 months; or
ii
if he has previously been convicted of an offence inferring dishonest appropriation of property or an attempt at such appropriation, to imprisonment for a term not exceeding 6 months,
or (in the case of either sub-paragraph) to both such fine and such imprisonment; or
b
on conviction on indictment to a fine or to imprisonment for a term not exceeding 2 years or to both.
19F12Statement of assets and liabilities etc.
1
Where the F13debtor has made a debtor application he shall, not later than 7 days after the appointment of the F14trustee under section 2 of this Act (where he is not the Accountant in Bankruptcy), send to the F15. . . trustee such statement of assets and liabilities as was F16sent to the Accountant in Bankruptcy in pursuance of section 5(6A) of this Act.
2
3
If the debtor—
a
fails to send to the F15. . . trustee in accordance with subsection (1) or (2) above such statement of assets and liabilities; or
b
fails to disclose any material fact in such statement of assets and liabilities; or
c
makes a material misstatement in such statement of assets and liabilities,
he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 3 months or to both such fine and imprisonment.
4
In any proceedings for an offence under subsection (3) above, it shall be a defence for the accused to show that he had a reasonable excuse for—
a
failing to send to the F15. . . trustee in accordance with subsection (1) or (2) above such statement of assets and liabilities; or
b
failing to disclose a material fact; or
c
making a material misstatement.
20 Trustee’s duties on receipt of list of assets and liabilities.
F181
When the F19. . . trustee has received the statement of assets and liabilities, he shall, as soon as practicable, prepare a statement of the debtor’s affairs so far as within the knowledge of the F19. . . trustee and shall indicate in the statement of the debtor’s affairs whether, in his opinion, the debtor’s assets are unlikely to be sufficient to pay any dividend whatsoever in respect of the debts mentioned in paragraphs (e) to (h) of section 51(1) of this Act.
2
The F19. . . trustee shall, not later than 4 days before the date fixed for the statutory meeting, F20or, where the trustee does not intend to hold such a meeting, not later than 60 days after the date on which sequestration is awarded, send to the Accountant in Bankruptcy—
a
c
written comments by the F19. . . trustee indicating what in his opinion are the causes of the insolvency and to what extent the conduct of the debtor may have contributed to the insolvency.
F242A
The trustee need not send a statement of the debtor's affairs to the Accountant in Bankruptcy in accordance with subsection (2)(b) above if the trustee has sent a copy of the inventory and valuation to the Accountant in Bankruptcy in accordance with section 38(1)(c) of this Act.
3
The written comments made under subsection (2)(c) above shall be absolutely privileged.
4
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F265A
Subsections (2) and (3) above do not apply in any case where the Accountant in Bankruptcy is the F19. . . trustee.
Cross-heading preceding s. 18 substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 16, 227(3), Sch. 1 para. 16(7) (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))