F1 PART   3A Deduction Orders

Annotations:

CHAPTER 2Regular Deduction Orders

Priority as between orders – regular deduction orders25H

1

Paragraphs (2) to (5) apply where one or more third party debt orders or garnishee orders provide for deductions to be made from the same account as that specified in a regular deduction order.

2

Where—

a

one or more third party debt orders or garnishee orders are served on a deposit-taker before or on the day a payment is due to be made under a regular deduction order; and

b

the regular deduction order was served on the same deposit-taker before those orders,

the deposit-taker must make that payment except where the deposit-taker has taken action to comply with the obligations under any third party debt order or garnishee order.

3

Where a regular deduction order is served after an interim third party debt order or a garnishee order nisi the deposit-taker must take action to comply with any of those orders before making a deduction under the regular deduction order.

4

Where paragraph (2) or (3) applies, the deposit-taker must take action to comply with any third party debt orders or garnishee orders before making further deductions under the regular deduction order.

5

Where a decision to revive a regular deduction order takes effect on the same day as or any day after a third party debt order or garnishee order has been served, the deposit-taker must take action to comply with any of those orders before making a deduction under the regular deduction order.

6

Paragraphs (1) to (5) do not apply to Scotland.

7

In Scotland, paragraphs (8) to (10) apply where a deposit-taker receives one or more arrestment schedules (“arrestments”) and a regular deduction order which apply to the same account.

8

Where—

a

one or more arrestments are served on a deposit-taker before or on the day a payment is due to be made under a regular deduction order; and

b

the regular deduction order was served on the same deposit-taker before any of those arrestments,

the deposit-taker must make that payment except where the deposit-taker has taken action to comply with the obligations under any of the arrestments.

9

Where paragraph (8) applies, the deposit-taker must take action to comply with any of those arrestments before making further deductions under the regular deduction order.

10

Where a decision to revive a regular deduction order takes effect on the same day as or any day after any arrestments have been served, the deposit-taker must take action to comply with any of those arrestments before making a deduction under the regular deduction order.