(1)In every sequestration there shall be a F2. . . trustee whose general functions shall be—
(a)to recover, manage and realise the debtor’s estate, whether situated in Scotland or elsewhere;
(b)to distribute the estate among the debtor’s creditors according to their respective entitlements;
(c)to ascertain the reasons for the debtor’s insolvency and the circumstances surrounding it;
(d)to ascertain the state of the debtor’s liabilities and assets;
(e)to maintain a sederunt book during his term of office for the purpose of providing an accurate record of the sequestration process;
(f)to keep regular accounts of his intromissions with the debtor’s estate, such accounts being available for inspection at all reasonable times by the commissioners (if any), the creditors and the debtor; and
(g)whether or not he is still acting in the sequestration, to supply the Accountant in Bankruptcy with such information as the Accountant in Bankruptcy considers necessary to enable him to discharge his functions under this Act.
(2)A F2. . . trustee in performing his functions under this Act shall have regard to advice offered to him by the commissioners (if any).
(3)If the F2. . . trustee has reasonable grounds to suspect that an offence has been committed in relation to a sequestration—
(a)by the debtor in respect of his assets, his dealings with them or his conduct in relation to his business or financial affairs; or
(b)by a person other than the debtor in that person’s dealings with the debtor, the interim trustee or the F2. . . trustee in respect of the debtor’s assets, business or financial affairs,
he shall report the matter to the Accountant in Bankruptcy.
[F3(3A)If the trustee has reasonable grounds to believe that any behaviour on the part of the debtor is of a kind that would result in a sheriff granting, under section 56B(1) of this Act, an application for a bankruptcy restrictions order, he shall report the matter to the Accountant in Bankruptcy.]
(4)A report under subsection (3) [F4or (3A)] above shall be absolutely privileged.
F5[(5)Paragraph (g) of subsection (1) above and [F6subsections (3) and (3A)] above shall not apply in any case where the F2. . . trustee is the Accountant in Bankruptcy.
(6)[F7Where the Accountant in Bankruptcy is the trustee, the Accountant in Bankruptcy] may apply to the sheriff for directions in relation to any particular matter arising in the sequestration.
(7)Where the debtor, a creditor or any other person having an interest is dissatisfied with any act, omission or decision of the F2. . . trustee, he may apply to the sheriff and, on such an application being made, the sheriff may confirm, annul or modify any act or decision of the F2. . . trustee or may give him directions or make such order as he thinks fit.]
[F8(8)The trustee shall comply with the requirements of subsections (1)(a) to (d) and (2) above only in so far as, in his view, it would be of financial benefit to the estate of the debtor and in the interests of the creditors to do so.]
Textual Amendments
F1S. 3: heading substituted (1.4.2008) by virtue of Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 6(2), 227 (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F2Words in s. 3 repealed (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 6 (with s. 223); S.S.I. 2008/115, art. 3(1)(h)(i)(2)(3), Sch. 2 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F3S. 3(3A) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 8(1)(a), 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F4Words in S. 3(4) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 8(1)(b), 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F5S. 3(5)-(7) added (1.4.1993, subject to savings in arts. 4, 5 of S.I. 1993/438) by 1993 c. 6, s. 11(3), Sch. 1 para.1 (with s. 12(6)); S.I. 1993/438, art.3
F6Words in s. 3(5) substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 8(1)(c), 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))
F7Words in s. 3(6) substituted (1.4.2015) by Bankruptcy and Debt Advice (Scotland) Act 2014 (asp 11), ss. 25(1), 57(2); S.S.I. 2014/261, art. 3 (with arts. 4-7, 9, 12) (as amended by S.S.I. 2015/54, art. 2)
F8S. 3(8) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 8(1)(d), 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))