• SCHEDULE 1 SCHEDULE 1 — Taking Control Of Goods

    Section 123(1)

    • Part 1 Part 1 Introductory

      • 1. The procedure

        (1) Using the procedure in this Schedule 1 to recover a sum means taking control of goods and selling them to recover that sum in accordance with this Schedule 1 and rules under it.
        (2) In this Schedule 1, a power to use the procedure to recover a particular sum is called an "enforcement power".
        (3) The following apply in relation to an enforcement power —
        (a) "debt" means the sum recoverable;
        (b) "debtor" means the person (whether natural or legal) liable to pay the debt or, if two or more persons are jointly or jointly and severally liable, any one or more of them;
        (c) "creditor" means the person for whom the debt is recoverable.

      • 2. Enforcement agents

        (1) In this Schedule 1 "enforcement agent" means an individual authorised by section 123(2) to act as an enforcement agent.
        (2) Only an enforcement agent may take control of goods and sell them under an enforcement power.
        (3) An enforcement agent, if he is not the person on whom an enforcement power is conferred, may act under the power only if authorised by that person.
        (4) In relation to goods taken control of by an enforcement agent under an enforcement power, references to the enforcement agent are references to any person for the time being acting as an enforcement agent under the power.

      • 3. General interpretation

        (1) In this Schedule 1
        (a) "amount outstanding" is defined in paragraph 31(3) (application of proceeds);
        (b) "control" (except in paragraph 5(4)(a) (effect of property in goods being bound)) means control under an enforcement power;
        (c) "controlled goods" means goods taken control of that —
        (i) have not been sold or abandoned;
        (ii) if they have been removed, have not been returned to the debtor (unless subject to a controlled goods agreement); and
        (iii) if they are goods of another person, have not been returned to that person;
        (d) "controlled goods agreement" has the meaning given by paragraph 11(4) (ways of taking control);
        (e) "co-owner" in relation to goods of the debtor means a person other than the debtor who has an interest in the goods, but only if the enforcement agent —
        (i) knows that the person has an interest in the particular goods; or
        (ii) would know, if he made reasonable enquiries;
        (f) "the Court", unless otherwise stated, and subject to court procedure rules, means the Court of First Instance in relation to an enforcement power under a writ of the Court of First Instance;
        (g) "disposal" and related expressions, in relation to securities, are to be read in accordance with paragraph 30(2) (holding and disposal of securities: supplemental);
        (h) "exempt goods" means goods that rules exempt by description or circumstances or both;
        (i) "goods" means property of any description, other than real property;
        (j) "interest" means a beneficial interest;
        (k) "money" means money in US dollars or another currency;
        (l) "premises" means any place, and in particular includes —
        (i) a vehicle, vessel, aircraft (whether powered or unpowered and, if the former, howsoever powered) or hovercraft;
        (ii) a movable structure;
        (m) "securities" includes bills of exchange, promissory notes, bonds, equities, stock, specialities and securities for money.
        (2) In this Schedule 1
        (a) references to goods of the debtor or another person are references to goods in which the debtor or that person has an interest; but
        (b) references to goods of the debtor do not include references to trust property in which either the debtor or a co-owner has an interest not vested in possession.

    • Part 2 Part 2 The Procedure

      • 4. Binding property in the debtor's goods

        (1) For the purposes of any enforcement power, the property in all goods of the debtor, except goods that are exempt goods for the purposes of this Schedule 1 or are protected under any other ADGM enactment, becomes bound in accordance with this paragraph.
        (2) Where the power is conferred by a writ issued from the Court, the writ binds the property in the goods from the time when it is received by the person who is under a duty to endorse it.
        (3) Where sub-paragraph (2) does not apply but notice is given to the debtor under paragraph 7(1) (notice of enforcement), the notice binds the property in the goods from the time when the notice is given.

      • 5. Effect of property in goods being bound

        (1) An assignment or transfer of any interest of the debtor's in goods while the property in them is bound for the purposes of an enforcement power —
        (a) is subject to that power; and
        (b) does not affect the operation of this Schedule 1 in relation to the goods, except as provided by paragraph 40 (application to assignee or transferee).
        (2) Sub-paragraph (1) does not prejudice the title to any of the debtor's goods that a person acquires —
        (a) in good faith;
        (b) for valuable consideration; and
        (c) without notice.
        (3) For the purposes of sub-paragraph (2)(a), a thing is to be treated as done in good faith if it is in fact done honestly (whether it is done negligently or not).
        (4) In sub-paragraph (2)(c) "notice" means —
        (a) where the property in the goods is bound by a writ, notice that the writ, or any other writ by virtue of which the goods of the debtor might be seized or otherwise taken control of, had been received by the person who was under a duty to endorse it and that goods remained bound under it;
        (b) where the property in the goods is bound by notice under paragraph 7(1) (notice of enforcement), notice that that notice had been given and that goods remained bound under it.

      • 6. Time when property ceases to be bound

        (1) For the purposes of any enforcement power the property in goods of the debtor ceases to be bound in accordance with this paragraph.
        (2) The property in any goods ceases to be bound —
        (a) when the goods are sold;
        (b) in the case of money used to pay any of the amount outstanding, when it is used.
        (3) The property in all goods ceases to be bound when any of these happens —
        (a) the amount outstanding is paid, out of the proceeds of sale or otherwise;
        (b) the instrument under which the power is exercisable ceases to have effect; or
        (c) the power ceases to be exercisable for any other reason.

      • 7. Notice of enforcement

        (1) An enforcement agent may not take control of goods unless the debtor has been given notice.
        (2) Rules must state —
        (a) the minimum period of notice;
        (b) the form of the notice;
        (c) what it must contain;
        (d) how it must be given;
        (e) who must give it.
        (3) The enforcement agent must keep a record of the time when the notice is given.
        (4) If rules authorise it, the Court may order in prescribed circumstances that the notice given may be less than the minimum period.
        (5) The order may be subject to conditions.

      • 8. Time limit for taking control

        (1) An enforcement agent may not take control of goods after the prescribed period.
        (2) The period may be prescribed by reference to the date of notice of enforcement or of any writ conferring the enforcement power or any other date.
        (3) Rules may provide for the period to be extended or further extended by the Court in accordance with the rules.

      • 9. Goods which may be taken

        (1) An enforcement agent may take control of goods only if they are —
        (a) on premises that he has power to enter under this Schedule 1; or
        (b) in a public place.
        (2) An enforcement agent may take control of goods only if they are goods of the debtor.
        (3) Subject to sub-paragraphs (1) and (2) and to any other ADGM enactment under which goods are protected, an enforcement agent —
        (a) may take control of goods anywhere in the Abu Dhabi Global Market;
        (b) may take control of any goods that are not exempt.
        (4) Rules may authorise him to take control of exempt goods in prescribed circumstances, if he provides the debtor with replacements in accordance with the rules.

      • 10. Value of goods taken

        (1) Unless sub-paragraph (2) applies, an enforcement agent may not take control of goods whose aggregate value is more than —
        (a) the amount outstanding; and
        (b) an amount in respect of future costs, calculated in accordance with rules.
        (2) An enforcement agent may take control of goods of higher value on premises or in a public place, only to the extent necessary, if there are not enough goods of a lower value within a reasonable distance —
        (a) in a public place; or
        (b) on premises that he has power to enter under this Schedule 1, either under paragraph 12 (entry without warrant) or under an existing warrant.
        (3) For the purposes of this paragraph goods are above a given value only if it is or ought to be clear to the enforcement agent that they are.
        (4) Sub-paragraph (1) does not affect the power to keep control of goods if they rise in value once they have been taken.

      • 11. Ways of taking control

        (1) To take control of goods an enforcement agent must do one of the following —
        (a) secure the goods on the premises on which he finds them;
        (b) if he finds them in a public place, secure them in a public place where he finds them or within a reasonable distance;
        (c) remove them and secure them elsewhere;
        (d) enter into a controlled goods agreement with the debtor.
        (2) Any liability of an enforcement agent arising out of his securing goods in a public place under this paragraph is excluded to the extent that he acted with reasonable care.
        (3) Rules may make further provision about taking control in any of the ways listed in sub-paragraph (1), including provision —
        (a) determining the time when control is taken;
        (b) prohibiting the use of any of those ways for goods by description or circumstances or both.
        (4) A controlled goods agreement is an agreement under which the debtor —
        (a) is permitted to retain custody of the goods;
        (b) acknowledges that the enforcement agent is taking control of them; and
        (c) agrees not to remove or dispose of them, nor to permit anyone else to, before the debt is paid.

      • 12. Entry without warrant

        (1) An enforcement agent may enter relevant premises to search for and take control of goods.
        (2) Where there are different relevant premises this paragraph authorises entry to each of them.
        (3) This paragraph authorises repeated entry to the same premises, subject to any restriction in rules.
        (4) If the enforcement agent is acting under section 127(1) (CRAR), the only relevant premises are the demised premises.
        (5) Otherwise premises are relevant if the enforcement agent reasonably believes that they are the place, or one of the places, where the debtor —
        (a) usually lives; or
        (b) carries on a trade or business.

      • 13. Entry under warrant

        (1) If an enforcement agent applies to the Court it may issue a warrant authorising him to enter specified premises to search for and take control of goods.
        (2) Before issuing the warrant, the Court must be satisfied that all these conditions are met —
        (a) an enforcement power has become exercisable;
        (b) there is reason to believe that there are goods on the premises that the enforcement power will be exercisable to take control of if the warrant is issued;
        (c) it is reasonable in all the circumstances to issue the warrant.
        (3) The warrant authorises repeated entry to the same premises, subject to any restriction in rules.

      • 14. Re-entry

        (1) This paragraph applies where goods on any premises have been taken control of and have not been removed by the enforcement agent.
        (2) The enforcement agent may enter the premises to inspect the goods or to remove them for storage or sale.
        (3) This paragraph authorises repeated entry to the same premises.

      • 15. General powers to use reasonable force

        Where paragraph 16 applies, an enforcement agent may if necessary use reasonable force to enter premises or to do anything for which entry is authorised.

      • 16. General powers to use reasonable force: supplementary

        (1) This sub-paragraph applies if these conditions are met —
        (a) the enforcement agent has power to enter the premises under paragraph 12 (entry without warrant);
        (b) the enforcement agent reasonably believes that the debtor carries on a trade or business on the premises;
        (c) the enforcement agent is acting under a writ of control issued for the purpose of recovering a sum payable under a Court of First Instance judgment.
        (2) This sub-paragraph and sub-paragraph (4) apply if these conditions are met —
        (a) the enforcement agent has power to enter the premises under paragraph 14 (re-entry);
        (b) he reasonable believes that the debtor carries on a trade or business on the premises;
        (c) he is acting under an enforcement power within sub-paragraph (4).
        (3) The enforcement powers are those under a writ of control issued for the purpose of recovering a sum payable under a Court of First Instance judgment.
        (4) This sub-paragraph and sub-paragraphs (6), (7), (8) and (9) apply if these conditions are met —
        (a) the enforcement agent has power to enter the premises under paragraph 14 (re-entry);
        (b) the enforcement agent has taken control of the goods by entering into a controlled goods agreement with the debtor;
        (c) the debtor has failed to comply with any provision of the controlled goods agreement relating to the payment by the debtor of the debt;
        (d) the debtor has been given notice of the intention of the enforcement agent to enter the premises to inspect the goods or to remove them for storage or sale;
        (e) sub-paragraph (2) does not apply.
        (5) For the purposes of a notice under sub-paragraph (5)(d), rules must state —
        (a) the minimum period of notice;
        (b) the form of the notice;
        (c) what it must contain;
        (d) how it must be given;
        (e) who must give it.
        (6) The enforcement agent must keep a record of the time when a notice under sub-paragraph (5)(d) is given.
        (7) If rules authorise it, the Court may order in prescribed circumstances that the notice given may be less than the minimum period.
        (8) The order may be subject to conditions.

      • 17. Application for power to use reasonable force

        (1) This sub-paragraph and sub-paragraph (2) apply if an enforcement agent has power to enter premises under paragraph 12 (entry without warrant) or 14 (re-entry) or under a warrant under paragraph 13.
        (2) If the enforcement agent applies to the Court it may issue a warrant which authorises him to use, if necessary, reasonable force to enter the premises or to do anything for which entry is authorised.
        (3) This sub-paragraph and sub-paragraph (4) apply if an enforcement agent is applying for power to enter premises under a warrant under paragraph 13.
        (4) If the enforcement agent applies to the Court it may include in the warrant provision authorising him to use, if necessary, reasonable force to enter the premises or to do anything for which entry is authorised.
        (5) The Court may not issue a warrant under sub-paragraph (2) or include provision under sub-paragraph (4) unless it is satisfied that prescribed conditions are met.
        (6) A warrant under sub-paragraph (2) or provision included under sub-paragraph (4) may require any law enforcement officer to assist the enforcement agent to execute the warrant.

      • 18. Other provisions about powers of entry

        Paragraph 19 applies where an enforcement agent has power to enter premises under paragraph 12 (entry without warrant) or 14 (re-entry) or under a warrant under paragraph 13.

      • 19. Other provisions about powers of entry: supplemental

        (1) The power to enter and any power to use force are subject to any restriction imposed by or under rules.
        (2) A power to use force does not include power to use force against persons.
        (3) The enforcement agent may enter and remain on the premises only within prescribed times of day.
        (4) Rules may give the Court power in prescribed circumstances to authorise him to enter or remain on the premises at other times.
        (5) The authorisation —
        (a) may be by order or in a warrant under paragraph 13;
        (b) may be subject to conditions.
        (6) The enforcement agent must on request show the debtor and any person who appears to him to be in charge of the premises evidence of —
        (a) his identity; and
        (b) his authority to enter the premises.
        (7) The request may be made before the enforcement agent enters the premises or while he is there.
        (8) The enforcement agent may take other people onto the premises.
        (9) The persons referred to in sub-paragraph (8) may assist the enforcement agent in exercising any power, including a power to use force.
        (10) The persons referred to in sub-paragraph (8) must not remain on the premises without the enforcement agent.
        (11) The enforcement agent may take any equipment onto the premises.
        (12) The enforcement agent may leave equipment on the premises if he leaves controlled goods there.
        (13) After entering the premises, the enforcement agent must provide a notice for the debtor giving information about what the enforcement agent is doing.
        (14) Rules must state —
        (a) the form of the notice;
        (b) what information it must give.
        (15) Rules may prescribe circumstances in which a notice need not be provided after re-entry to premises.
        (16) If the debtor is on the premises when the enforcement agent is there, the enforcement agent must give him the notice then.
        (17) If the debtor is not there, the enforcement agent must leave the notice in a conspicuous place on the premises.
        (18) If the enforcement agent knows that there is someone else there or that there are other occupiers, a notice he leaves under sub-paragraph (17) must be in a sealed envelope addressed to the debtor.
        (19) If the premises are occupied by any person other than the debtor, the enforcement agent must leave at the premises a list of any goods he takes away.
        (20) The enforcement agent must leave the premises as effectively secured as he finds them.

      • 20. Goods in a public place

        (1) If the enforcement agent applies to the Court it may issue a warrant which authorises him to use, if necessary, reasonable force to take control of goods in a public place.
        (2) The Court may not issue a warrant unless it is satisfied that prescribed conditions are met.
        (3) The warrant may require any law enforcement officer to assist the enforcement agent to execute it.
        (4) The power to use force is subject to any restriction imposed by or under rules.
        (5) The power to use force does not include power to use force against persons.
        (6) The enforcement agent may not exercise any power under this Schedule 1 in a public place except within prescribed times of day.
        (7) Rules may give the Court power in prescribed circumstances to authorise him to exercise a power at other times.
        (8) The authorisation may be subject to conditions.
        (9) If the enforcement agent takes control of goods in a public place or enters a vehicle on a highway or a public place with the intention of taking control of goods, he must provide a notice for the debtor giving information about what he is doing.
        (10) Rules must state —
        (a) the form of the notice;
        (b) what information it must give.
        (11) If the debtor is present when the enforcement agent is there, the enforcement agent must give him the notice then.
        (12) Otherwise the enforcement agent must deliver the notice to any relevant premises (as defined by paragraph 12 (entry without warrant)) in a sealed envelope addressed to the debtor.

      • 21. Inventory

        (1) If an enforcement agent takes control of goods he must provide the debtor with an inventory of them as soon as practicable.
        (2) But if there are co-owners of any of the goods, the enforcement agent must instead provide the debtor as soon as reasonably practicable with separate inventories of goods owned by the debtor and each co-owner and an inventory of goods without a co-owner.
        (3) The enforcement agent must as soon as reasonably practicable provide the co-owner of any of the goods with —
        (a) the inventory of those goods; and
        (b) a copy of the notice under paragraph 19(13).
        (4) Rules must state —
        (a) the form of an inventory; and
        (b) what it must contain.

      • 22. Care of goods removed

        (1) An enforcement agent must take reasonable care of controlled goods that he removes from the premises or public place where he finds them.
        (2) He must comply with any provision of rules about their care while they remain controlled goods.

      • 23. Valuation

        (1) Before the end of the minimum period, the enforcement agent must —
        (a) make or obtain a valuation of the controlled goods in accordance with rules;
        (b) give the debtor, and separately any co-owner, an opportunity to obtain an independent valuation of the goods.
        (2) In this paragraph "minimum period" means the period specified by rules under —
        (a) paragraph 30(5) to (12) (holding and disposal of securities: supplemental), in the case of securities;
        (b) paragraph 26(1) and (2) (sale: supplementary), in any other case.

      • 24. Best price

        (1) An enforcement agent must sell or dispose of controlled goods for the best price that can reasonably be obtained in accordance with this Schedule 1.
        (2) That does not apply to money that can be used for paying any of the outstanding amount, unless the best price is more that its value if used in that way.

      • 25. Sale

        Paragraph 26 applies to the sale of controlled goods, except where —

        (a) the controlled goods are securities; or
        (b) the sale is by exchange of one currency for another.

      • 26. Sale: supplementary

        (1) The sale must not be before the end of the minimum period except with the agreement of the debtor and any co-owner.
        (2) Rules must specify the minimum period.
        (3) Before the sale, the enforcement agent must give notice of the date, time and place of the sale to the debtor and any co-owner.
        (4) Rules must state —
        (a) the minimum period of notice;
        (b) the form of the notice;
        (c) what it must contain (besides the date, time and place of sale);
        (d) how it must be given.
        (5) The enforcement agent may replace a notice with a new notice, subject to any restriction in rules.
        (6) Any notice must be given within the permitted period.
        (7) Unless extended, the permitted period is 12 months beginning with the day on which the enforcement agent takes control of the goods.
        (8) Any extension must be by agreement in writing between the creditor and debtor before the end of the period.
        (9) The permitted period may be extended more than once.
        (10) The sale must be by public auction unless the Court orders otherwise.
        (11) The Court may make an order only on an application by the enforcement agent.
        (12) Rules may make provision about the types of sale the Court may order.
        (13) In an application for an order under sub-paragraph (11), the enforcement agent must state whether he has reason to believe that an enforcement power has become exercisable by another creditor against the debtor or a co-owner.
        (14) If the enforcement agent states that he does, the Court may not consider the application until notice of it has been given to the other creditor in accordance with rules (or until the Court is satisfied that an enforcement power is not exercisable by the other creditor against the debtor or a co-owner).
        (15) Rules may make further provision about the sale of controlled goods, including in particular —
        (a) requirements for advertising;
        (b) provision about the conduct of a sale.

      • 27. Place of sale

        (1) Rules may make provision about the place of sale of controlled goods.
        (2) Rules may prescribe circumstances in which the sale may be held on premises where goods were found by the enforcement agent.
        (3) Except where rules provide otherwise, the sale may not be held on those premises without the consent of the occupier.
        (4) Paragraph 28 applies if the sale may be held on those premises.

      • 28. Place of sale: supplemental

        (1) The enforcement agent and any person permitted by him —
        (a) may enter the premises to conduct or attend the sale;
        (b) may bring equipment onto the premises for the purposes of the sale.
        (2) This paragraph authorises repeated entry to the premises.
        (3) If necessary, the enforcement agent may use reasonable force to enable the sale to be conducted and any person to enter under this paragraph.
        (4) The enforcement agent must on request show the debtor and any person who appears to him to be in charge of the premises evidence of —
        (a) his identity; and
        (b) his authority to enter and hold the sale on the premises.
        (5) The request may be made before the enforcement agent enters the premises or while he is there.
        (6) The enforcement agent must leave the premises as effectively secured as he finds them.

      • 29. Holding and disposal of securities

        Paragraph 30 applies to securities as controlled goods.

      • 30. Holding and disposal of securities: supplemental

        (1) Rules may make provision about how securities are to be held and disposed of.
        (2) In this Schedule 1, references to disposal include, in relation to securities, realising the sums secured or made payable by them, suing for the recovery of those sums or assigning the right to sue for their recovery.
        (3) Rules may in particular make provision for purposes corresponding to those for which provision is made in this Schedule 1 in relation to the disposal of other controlled goods.
        (4) The power to make rules under this paragraph is subject to sub-paragraphs (5) to (12).
        (5) The creditor may sue in the name of the debtor, or in the name of any person in whose name the debtor might have sued, for the recovery of any sum secured or made payable by securities, when the time of payment arrives.
        (6) Before any proceedings under sub-paragraph (5) are commenced or the securities disposed of, the enforcement agent must give notice of the disposal to the debtor and any co-owner.
        (7) Rules must state —
        (a) the minimum period of notice;
        (b) the form of the notice;
        (c) what it must contain;
        (d) how it must be given.
        (8) The enforcement agent may replace a notice with a new notice, subject to any restriction in rules.
        (9) Any notice must be given within the permitted period.
        (10) Unless extended the permitted period is 12 months beginning with the time of payment.
        (11) Any extension must be by agreement in writing between the creditor and debtor before the end of the period.
        (12) The permitted period may be extended more than once.

      • 31. Application of proceeds

        (1) Proceeds from the exercise of an enforcement power must be used to pay the amount outstanding.
        (2) Proceeds are any of these —
        (a) proceeds of sale or disposal of controlled goods;
        (b) money taken in exercise of the power, if paragraph 24(1) (best price) does not apply to it.
        (3) The amount outstanding is the sum of these —
        (a) the amount of the debt which remains unpaid (or an amount that the creditor agrees to accept in full satisfaction of the debt);
        (b) any amounts recoverable out of proceeds in accordance with rules under paragraph 41 (costs).
        (4) If the proceeds are less than the amount outstanding, which amounts in sub-paragraph (3)(a) and (b) must be paid, and how much of any amount, is to be determined in accordance with rules.
        (5) If the proceeds are more than the amount outstanding, the surplus must be paid to the debtor.
        (6) If there is a co-owner of any of the goods, the enforcement agent must —
        (a) first pay the co-owner a share of the proceeds of those goods proportionate to his interest;
        (b) then deal with the rest of the proceeds under sub-paragraphs (1) to (5).
        (7) Rules may make provision for resolving disputes about what share is due under sub-paragraph (6)(a).

      • 32. Passing of title

        (1) A purchaser of controlled goods acquires good title, with two exceptions.
        (2) The exceptions apply only if the goods are not the debtor's at the time of sale.
        (3) The first exception is where the purchaser, the creditor, the enforcement agent or a related party has notice that the goods are not the debtor's.
        (4) The second exception is where a lawful claimant has already made an application to the Court claiming an interest in the goods.
        (5) A lawful claimant in relation to goods is a person who has an interest in them at the time of sale, other than an interest that was assigned or transferred to him while the property in the goods was bound for the purposes of an enforcement power.
        (6) A related party is any person who acts in exercise of an enforcement power, other than the creditor or enforcement agent.
        (7) "The Court" has the same meaning as in paragraph 39(8) (third party claiming goods).

      • 33. Abandonment of goods other than security

        Paragraph 34 applies to controlled goods other than —

        (a) securities;
        (b) money to which paragraph 24(1) (best price) does not apply.

      • 34. Abandonment of goods other than security: supplemental

        (1) Controlled goods are abandoned if the enforcement agent does not give the debtor or any co-owner notice under paragraph 26(3) to (9) (notice of sale) within the permitted period.
        (2) Rules may prescribe other circumstances in which controlled goods are abandoned.
        (3) If controlled goods are abandoned then, in relation to the enforcement power concerned, the following apply —
        (a) the enforcement power ceases to be exercisable;
        (b) as soon as reasonably practicable the enforcement agent must make the goods available for collection by the debtor, if he removed them from where he found them.
        (4) Rules may make further provision about arrangements under sub-paragraph (3)(b), including in particular provision about the disposal of goods uncollected after a prescribed period.
        (5) Where the enforcement power was under a writ, sub-paragraph (3) does not affect any power to issue another writ.

      • 35. Abandonment of securities

        Paragraph 36 applies to securities as controlled goods.

      • 36. Abandonment of securities: supplemental

        (1) Securities are abandoned if the enforcement agent does not give the debtor or any co-owner notice under paragraph 30(5) to (12) (notice of disposal) within the permitted period.
        (2) Rules may prescribe other circumstances in which securities are abandoned.
        (3) If securities are abandoned then, in relation to the enforcement power concerned, the following apply —
        (a) the enforcement power ceases to be exercisable;
        (b) as soon as reasonably practicable the enforcement agent must make the securities available for collection by the debtor, if he removed them for where he found them.
        (4) Where the enforcement power was under a writ, sub-paragraph (3) does not affect any power to issue another writ.

      • 37. Payment of amount outstanding

        (1) This paragraph applies where the debtor pays the amount outstanding in full —
        (a) after the enforcement agent has taken control of goods; and
        (b) before they are sold or abandoned.
        (2) If the enforcement agent has removed the goods he must as soon as reasonably practicable make them available for collection by the debtor.
        (3) No further step may be taken under the enforcement power concerned.
        (4) For the purposes of this paragraph, the amount outstanding is reduced by the value of any controlled goods consisting of money required to be used to pay that amount, and sub-paragraph (2) does not apply to that money.

      • 38. Payment of amount outstanding: supplementary

        (1) This paragraph applies if a further step is taken despite paragraph 37(3).
        (2) The enforcement agent is not liable unless he had notice, when the step was taken, that the amount outstanding had been paid in full.
        (3) Sub-paragraph (2) applies to a related party as to the enforcement agent.
        (4) If the step taken is sale of any of the goods the purchaser acquires good title unless, at the time of sale, he or the enforcement agent had notice that the amount outstanding had been paid in full.
        (5) A person has notice that the amount outstanding has been paid in full if he would have found it out if he had made reasonable enquiries.
        (6) Sub-paragraphs (2) to (4) do not affect any right of the debtor or a co-owner to a remedy against any person other than the enforcement agent or a related party.
        (7) In this paragraph, "related party" has the meaning given by paragraph 42(12).

      • 39. Third party claiming goods

        (1) This paragraph applies where a person makes an application to the Court claiming that goods taken control of are his and not the debtor's.
        (2) After receiving notice of the application the enforcement agent must not sell the goods, or dispose of them (in the case of securities), unless directed by the Court under this paragraph.
        (3) The Court may direct the enforcement agent to sell or dispose of the goods if the applicant fails to make, or to continue to make, the required payments into Court.
        (4) The required payments are —
        (a) payment on making the application (subject to sub-paragraph (5)) of an amount equal to the value of the goods, or to a proportion of it directed by the Court;
        (b) payment, at prescribed times (on making the application or later), of any amounts prescribed in respect of the enforcement agent's costs of retaining the goods.
        (5) If the applicant makes a payment under sub-paragraph (4)(a) but the enforcement agent disputes the value of the goods, any underpayment is to be —
        (a) determined by reference to an independent valuation carried out in accordance with rules; and
        (b) paid at the prescribed time.
        (6) If sub-paragraph (3) does not apply the Court may still direct the enforcement agent to sell or dispose of the goods before the Court determines the applicant's claim, if it considers it appropriate having regard to all the circumstances.
        (7) If the Court makes a direction under sub-paragraph (3) or (6) —
        (a) paragraphs 25 (sale) to 30 (holding and disposal of securities: supplemental), and rules under them, apply subject to any modification directed by the Court;
        (b) the enforcement agent must pay the proceeds of sale or disposal into Court.
        (8) In this paragraph "the Court", subject to court procedure rules, means the Court of First Instance.

      • 40. Application to assignee or transferee

        (1) This Schedule 1 applies as follows where an interest of the debtor's in goods is assigned or transferred while the property in the goods is bound for the purposes of an enforcement power, and the enforcement agent —
        (a) knows that the assignee or transferee has an interest in the particular goods; or
        (b) would know, if he made reasonable enquiries.
        (2) These apply as if the assignee or transferee were a co-owner of the goods with the debtor —
        (a) paragraph 21 (inventory);
        (b) paragraph 23 (valuation);
        (c) paragraph 26 (sale: supplementary);
        (d) paragraph 38(6) (remedies after payment of amount outstanding).
        (3) If the interest of the assignee or transferee was acquired in good faith, for valuable consideration and without notice, paragraph 31(6) applies as if "co-owner" included the assignee or transferee.
        (4) If the interest of the assignee or transferee was not acquired in good faith, for valuable consideration and without notice, the enforcement agent must pay any surplus under paragraph 31(5) to the assignee or transferee and to the debtor (if he retains an interest).
        (5) If the surplus is payable to two or more persons it must be paid in shares proportionate to their interests.
        (6) Paragraph 5(3) and (4) ("good faith" and "notice") apply for the purposes of this paragraph.

      • 41. Costs

        (1) Rules may make provision for the recovery by any person from the debtor of amounts in respect of costs of enforcement-related services.
        (2) Rules may provide for recovery to be out of proceeds or otherwise.
        (3) The amount recoverable under the rules in any case is to be determined by or under those rules.
        (4) Rules may in particular provide for the amount, if disputed, to be assessed in accordance with court procedure rules.
        (5) "Enforcement-related services" means anything done under or in connection with an enforcement power, or in connection with obtaining an enforcement power, or any services used for the purposes of a provision of this Schedule 1 or rules under it.

      • 42. Limitation of liability for sale or payment of proceeds

        (1) Any liability of an enforcement agent or related party to a lawful claimant for the sale of controlled goods is excluded except in two cases.
        (2) The first exception is where, at the time of the sale, the enforcement agent had notice that the goods were not the debtor's, or not his alone.
        (3) The second exception is where, before the sale, the lawful claimant had made an application to the Court claiming an interest in the goods.
        (4) A lawful claimant in relation to goods is a person who has an interest in them at time of sale, other than an interest that was assigned or transferred to him while the property in the goods was bound for the purposes of the enforcement power.
        (5) Any liability of an enforcement agent or related party to a lawful claimant for paying over proceeds is excluded except in two cases.
        (6) The first exception is where, at the time of the payment, he had notice that the goods were not the debtor's, or not his alone.
        (7) The second exception is where, before that time, the lawful claimant had made an application to the court claiming an interest in the goods.
        (8) A lawful claimant in relation to goods is a person who has an interest in them at the time of sale.
        (9) Sub-paragraphs (1) to (8) —
        (a) do not affect the liability of a person other than the enforcement agent or a related party;
        (b) do not apply to the creditor if he is the enforcement agent.
        (10) The following apply for the purposes of this paragraph.
        (11) The enforcement agent or a related party has notice of something if he would have found it out if he had made reasonable enquiries.
        (12) A related party is any person who acts in exercise of an enforcement power, other than the creditor or enforcement agent.
        (13) "The Court" has the same meaning as in paragraph 39.

      • 43. Remedies available to the debtor

        (1) This paragraph applies where an enforcement agent —
        (a) breaches a provision of this Schedule 1; or
        (b) acts under an enforcement power under a writ, warrant, liability order or other instrument that is defective.
        (2) The breach or defect does not make the enforcement agent, or a person he is acting for, a trespasser.
        (3) But the debtor may bring proceedings under this paragraph.
        (4) Subject to court procedure rules, the proceedings must be brought in the Court of First Instance.
        (5) In the proceedings, the Court may —
        (a) order goods to be returned to the debtor;
        (b) order the enforcement agent or a related party to pay damages in respect of loss suffered by the debtor as a result of the breach or anything done under the defective instrument.
        (6) A related party is either of the following (if different from the enforcement agent) —
        (a) the person on whom the enforcement power is conferred;
        (b) the creditor.
        (7) Sub-paragraph (5) does not affect to any other powers of the Court.
        (8) Sub-paragraph (5)(b) does not apply where the enforcement agent acted in the reasonable belief —
        (a) that he was not breaching a provision of this Schedule 1; or
        (b) (as the case may be) that the instrument was not defective.
        (9) This paragraph is subject to paragraph 38 in the case of a breach of paragraph 37(3).

      • 44. Remedies available to the creditor

        If a debtor wrongfully interferes with controlled goods and the creditor suffers loss as a result, the creditor may bring a claim against the debtor in respect of the loss.

      • 45. Contraventions

        (1) A person commits a contravention of these Regulations if he intentionally —
        (a) obstructs a person lawfully acting as an enforcement agent;
        (b) interferes with controlled goods without lawful excuse.
        (2) A person who commits a contravention under this paragraph is liable to a fine not exceeding level 4 on the standard fine scale.

      • 46. Relation to insolvency provisions

        This Schedule 1 is subject to subsection (5) to (8) of sections 215 and 217 of the Insolvency Regulations 2015.