PART 4Protected Cell Companies
CHAPTER 11Debentures (debt securities)
Transfers by a cell to a debenture holder148.
(1)
This regulation applies where a protected cell company transfers an asset held by the protected cell company to the holder of a debenture issued on behalf of a cell in full or partial satisfaction of any indebtedness arising under or acknowledged by the debenture.
(2)
Where the cell is not a member of a group of cells, the protected cell company may only transfer the asset if the following conditions are satisfied—
(a)
the asset is held by the protected cell company on behalf of the cell; and
(b)
where the protected cell company has a liability to an undertaking arising under a contract made between the undertaking and the protected cell company acting on behalf of the cell, the undertaking has consented to the transfer (whether in the contract or otherwise).
(3)
Where the cell (“the relevant cell”) is a member of a group of cells, the protected cell company may only transfer the asset if the following conditions are satisfied—
(a)
the asset is held by the protected cell company on behalf of the relevant cell;
(b)
the protected cell company will, immediately after the transfer, hold sufficient assets on behalf of the relevant cell to enable the protected cell company to give effect to any enforceable arrangements made between the relevant cell and any other cell; and
(c)
where the protected cell company has a liability to an undertaking arising under a contract made between the undertaking and the protected cell company acting on behalf of a cell in that group of cells, the undertaking has consented to the transfer (whether in the contract or otherwise).