Award of sequestration and appointment and resignation of interim trustee
12 When sequestration is awarded.
F11
Where a F2 debtor application is made, the Accountant in Bankruptcy shall award sequestration forthwith if he is satisfied—
F2a
that the application has been made in accordance with the provisions of this Act and any provisions made under this Act;
b
that either subsection (2A) or (2B) of section 5 of this Act applies to the debtor; and
c
that the provisions of F3subsection(6A) of that section have been complied with.
1A
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Where a petition for sequestration of a debtor’s estate is presented by a creditor or a trustee acting under a trust deed, the F5sheriff to whom the petition is presented shall grant warrant to cite the debtor to appear before F6him on such date as shall be specified in the warrant, being a date not less than 6 nor more than 14 days after the date of citation, to show cause why sequestration should not be awarded.
F73
Where, on a petition for sequestration presented by a creditor or a trustee acting under a trust deed, the F8sheriff is satisfied—
a
that, if the debtor has not appeared, proper citation has been made of the debtor;
b
that the petition has been presented in accordance with the provisions of this Act;
c
that the provisions of subsection (6) of section 5 of this Act have been complied with;
d
that, in the case of a petition by a creditor, the requirements of this Act relating to apparent insolvency have been fulfilled; and
e
that, in the case of a petition by a trustee, the averments in his petition as to any of the conditions in subsection (2C) of the said section 5 are true,
3A
Sequestration shall not be awarded in pursuance of subsection (3) above if—
a
cause is shown why sequestration cannot competently be awarded; or
b
the debtor forthwith pays or satisfies, or produces written evidence of the payment or satisfaction of, or gives or shows that there is sufficient security for the payment of—
i
the debt in respect of which he became apparently insolvent; and
ii
any other debt due by him to the petitioner and any creditor concurring in the petition.
F113B
Where the sheriff is satisfied that the debtor shall, before the expiry of the period of 42 days beginning with the day on which the debtor appears before the sheriff, pay or satisfy—
a
the debt in respect of which the debtor became apparently insolvent; and
b
any other debt due by the debtor to the petitioner and any creditor concurring in the petition,
the sheriff may continue the petition for a period of no more than 42 days.
3C
Where the sheriff is satisfied—
a
that a debt payment programme (within the meaning of Part 1 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17)) relating to—
i
the debt in respect of which the debtor became apparently insolvent; and
ii
any other debt due by the debtor to the petitioner and any creditor concurring in the petition,
has been applied for and has not yet been approved or rejected; or
b
that such a debt payment programme will be applied for,
the sheriff may continue the petition for such period as he thinks fit.
F14
In this Act “the date of sequestration” means—
a
where F12a debtor application is made , the date on which sequestration is awarded;
b
where the petition for sequestration is presented by a creditor or a trustee acting under a trust deed—
i
the date on which the F13sheriff grants warrant under subsection (2) above to cite the debtor; or
ii
where more than one such warrant is granted, the date on which the first such warrant is granted.