[F1Part A1U.K.Moratorium

Textual Amendments

Modifications etc. (not altering text)

C1Pt. A1 excluded by S.I. 2012/3013, Sch. 1 para. 1(2A) (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 49(4) (with ss. 2(2), 5(2)))

C2Pt. A1 power to apply (with modifications) conferred by 2011 c. 25, s. 247A (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 45 (with ss. 2(2), 5(2)))

Chapter 4U.K.Effects of moratorium

Restrictions on transactionsU.K.

A27Prohibition on entering into market contracts etcU.K.

(1)If a company enters into a transaction to which this section applies during a moratorium for the company—

(a)the company commits an offence, and

(b)any officer of the company who without reasonable excuse authorised or permitted the company to enter into the transaction commits an offence.

(2)A company enters into a transaction to which this section applies if it—

(a)enters into a market contract,

(b)enters into a financial collateral arrangement,

(c)gives a transfer order,

(d)grants a market charge or a system-charge, or

(e)provides any collateral security.

(3)Where during the moratorium a company enters into a transaction to which this section applies, nothing done by or in pursuance of the transaction is to be treated as done in contravention of any of sections A19, A21, A25, A26 and A28 to A32.

(4)In this section—