The First Group of PartsCompany Insolvency ; Companies Winding Up

PART IIIReceivership

CHAPTER IIReceivers (Scotland)

52Circumstances justifying appointment

(1)

A receiver may be appointed under section 51(1) by the holder of the floating charge on the occurrence of any event which, by the provisions of the instrument creating the charge, entitles the holder of the charge to make that appointment and, in so far as not otherwise provided for by the instrument, on the occurrence of any of the following events, namely—

(a)

the expiry of a period of 21 days after the making of a demand for payment of the whole or any part of the principal sum secured by the charge, without payment having been made;

(b)

the expiry of a period of 2 months during the whole of which interest due and payable under the charge has been in arrears;

(c)

the making of an order or the passing of a resolution to wind up the company;

(d)

the appointment of a receiver by virtue of any other floating charge created by the company.

(2)

A receiver may be appointed by the court under section 51(2) on the occurrence of any event which, by the provisions of the instrument creating the floating charge, entitles the holder of the charge to make that appointment and, in so far as not otherwise provided for by the instrument, on the occurrence of any of the following events, namely—

(a)

where the court, on the application of the holder of the charge, pronounces itself satisfied that the position of the holder of the charge is likely to be prejudiced if no such appointment is made;

(b)

any of the events referred to in paragraphs (a) to (c) of subsection (1).