Modification of the Insolvency (Scotland) Rules 1986U.K.
15. Where the collateral-provider or the collateral-taker under a financial collateral arrangement goes into liquidation or, in the case of a partnership, sequestration and the arrangement provides for, or the mechanism provided under the arrangement permits, either—
(a)the debt owed by the party in liquidation or sequestration under the arrangement, to be assessed or paid in a currency other than sterling; or
(b)the debt to be converted into sterling at a rate other than the official exchange rate prevailing on the date when that party went into liquidation or sequestration;
then rules 4.16 and 4.17 of the Insolvency (Scotland) Rules 1986 M1 and section 49(3) of the Bankruptcy (Scotland) Act 1985 as applied by rule 4.16 (1)(c) of those rules (claims in foreign currency), as appropriate, shall not apply unless the arrangement provides for an unreasonable exchange rate or the collateral-taker uses the mechanism provided under the arrangement to impose an unreasonable exchange rate in which case the appropriate rule shall apply.
Marginal Citations
M1S.I.1986/1915, amended by S.I. 2003/2111, S.I. 2002/2709, S.I. 1999/1820, S.I. 1987/1921.