Source: http://www.legislation.gov.uk/uksi/2013/1894/made
Timestamp: 2018-07-23 08:14:02
Document Index: 480438097

Matched Legal Cases: ['ART 3', 'art 3', 'ART 4', 'art 4', 'ART 5', 'ART 6', 'ART 7', 'art 7', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7']

The Lord Chancellor makes the following Regulations in exercise of the powers conferred by sections 73(8), 77(4), 81(5) and (6) and 90 of and paragraphs 3(1), 7(2) and (4), 8, 13(3), 14(3), 15(3), 19A(2) and (4), 22(1), 24(1), 25(1) and (2), 28(2) and (3), 31(2) and (4), 32(1) and (2), 33(2), 34(4), 35(2), 36, 39(2), 40(2) and (3), 41(3) and (5), 42, 43(1), (2) and (3), 48(1), (3) and (4), 49(3) and (4), 54(2) and 60(4) and (5) of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007(1).
1.—(1) These Regulations may be cited as the Taking Control of Goods Regulations 2013 and come into force on 6th April 2014.
the day on which the period begins; and
if the end of the period is defined by reference to an event, the day on which that event occurs,
“controlled goods” has the meaning given in paragraph 3(1) of Schedule 12 (general interpretation);
“co-owner” has the meaning given in paragraph 3(1) of Schedule 12 (general interpretation);
“CRAR” has the meaning given in section 72 of the Act (commercial rent arrears recovery (CRAR));
“creditor” has the meaning given in paragraph 1(6) of Schedule 12 (the procedure);
“debtor” has the meaning given in paragraph 1(5) of Schedule 12 (the procedure);
“disabled person” means a person—
whose sight, hearing or speech is substantially impaired;
who has a mental disorder; or
who is physically substantially disabled by any illness, any impairment present since birth, or otherwise;
“enforcement agent” has the meaning given in paragraph 2(1) of Schedule 12 (enforcement agents);
“net unpaid rent” has the meaning given in section 77(5) of the Act (the rent recoverable);
“notice of enforcement” means the notice of enforcement required by paragraph 7(1) of Schedule 12;
“notice of the enforcement agent’s intention to re-enter premises” means the notice of the enforcement agent’s intention to re-enter premises required by paragraph 19A(1)(d) of Schedule 12;
“older person” means a person aged 65 or over;
“premises” has the meaning given in paragraph 3(1) of Schedule 12 (general interpretation);
“reference number” means a reference number assigned to the debt by the enforcement agent or the enforcement agent’s office;
“relevant premises” has the meaning given by paragraph 14(4) and (6) of Schedule 12 (entry without warrant);
“Schedule 12” means Schedule 12 to the Act;
“securities” has the meaning given in paragraph 3(1) of Schedule 12 (general interpretation);
“specified premises” means premises specified in a warrant issued under paragraph 15(1) of Schedule 12 (entry under warrant);
“the sum outstanding” means the outstanding debt together with any interest and any costs of enforcement to date;
“taking control of goods” has the meaning given by paragraph 13(1) of Schedule 12 (ways of taking control).
3.—(1) These Regulations apply in relation to taking control of goods and selling them in the exercise of a power to use the procedure in Schedule 12.
(2) These Regulations apply to all such cases except to the extent that they provide otherwise.
(i)section 62A of the Local Government Finance Act 1988(2);
(ii)section 54 of the Land Drainage Act 1991(3);
(iii)paragraph 12 of Schedule 15 to the Water Resources Act 1991(4); or
(iv)section 127 of the Finance Act 2008(5).
(i)the enforcement agent is attempting to recover a debt enforceable under section 127 of the Finance Act 2008(6); or
(d)a county court warrant of control pursuant to section 85 of the County Courts Act 1984(7) except such a warrant which is issued to recover a traffic contravention debt as defined by section 82 of the Traffic Management Act 2004(8);
(g)a magistrates’ court warrant of control pursuant to section 76 of the Magistrates’ Courts Act 1980(9).
PART 3SALE OF CONTROLLED GOODS
Part 3 not to apply to securities
36. This Part does not apply to controlled goods which are securities.
Minimum period of notice of sale
38.—(1) Subject to paragraph (2), the minimum period of notice of the date, time and place of sale required by paragraph 40 of Schedule 12 is 7 clear days before the sale of the goods.
(2) Notice may be given on the day before the sale of the goods where, if the sale were to take place after the expiry of the period of time referred to in paragraph (1), the goods would become unsaleable, or their sale value would be extinguished or substantially reduced due to the nature or any characteristic of those goods.
Form and contents of notice of sale
39.—(1) Notice of the date, time and place of the sale required by paragraph 40 of Schedule 12 must be in writing, be signed by the enforcement agent and contain the following information—
(d)that the controlled goods may be sold as the debtor has failed to pay the sum outstanding;
(e)a list of the controlled goods that may be sold with a description to enable the debtor or the co-owner to identify the goods correctly, including, where applicable—
(iii)the material, colour and usage and (where appropriate) any other identifying characteristic, of the goods;
(f)that the sale of the controlled goods is conditional on—
(i)an offer to purchase the goods being made; and
(ii)the reserve price, if any, on the controlled goods being met;
(g)that if the conditions in paragraph (f) are not met the date, time and place of sale will be set out in a further notice;
(h)the amount of the sum outstanding as at the date of the notice;
(i)the date and time by which the sum outstanding must be paid to prevent the controlled goods being sold;
(j)how and between which hours and on which days payment of the sum outstanding may be made; and
(k)the procedure for collection by or on behalf of the debtor or co-owner of goods of which control has been taken on payment of the sum outstanding or on part payment of the sum outstanding where an agreement is made between the enforcement agent and the debtor.
(2) Where the conditions in paragraph (1)(f) are not met and a further notice is given to the debtor and any co-owner by virtue of paragraph (1)(g), the notice must—
(a)comply with the requirements of regulation 38;
(b)provide the information required by paragraph (1); and
(c)state that it is a further notice.
(3) The enforcement agent may replace the notice with a new notice, in accordance with paragraph 40(3) of Schedule 12, only if—
(a)the date, time or location of the sale has had to be re-arranged;
(b)the minimum period of notice of the date, time and place of sale in the new notice is of the same period as in the notice which is to be replaced; and
(c)the new notice sets out—
(i)the information required by paragraph (1);
(ii)that it is a new notice;
(iii)that it replaces the last notice given to the debtor or co-owner; and
(iv)the date of the notice which it replaces.
Method of giving notice of sale
40.—(1) The method of giving the notice of the date, time and place of sale required by paragraph 40 of Schedule 12 is the method required under regulation 8(1) (method of giving notice).
(2) For the purposes of this regulation, references in regulation 8(1) to a debtor include a co-owner.
41.—(1) Where an enforcement agent applies to the court under paragraph 41(2) of Schedule 12 for an order that the sale be by a method other than public auction, the types of sale the court may order include sale by—
(a)private contract;
(b)sealed bids;
(c)advertisement; and
(d)such other method as the court considers appropriate.
(2) Where the enforcement agent has stated to the court (as required by paragraph 41(4) of Schedule 12) that the enforcement agent has reason to believe that an enforcement power has become exercisable by another creditor against the debtor or a co-owner, the notice of application required by paragraph 41(5) of that Schedule must—
(a)be in writing, signed by the enforcement agent and set out—
(i)the name and address of the debtor; and
(ii)the enforcement agent’s name, the reference number or numbers and the date of the notice;
(b)attach a copy of the enforcement agent’s application to the court; and
(c)be given to that other creditor—
(i)by the enforcement agent; and
(ii)by a method required under regulation 8(1) (method of giving notice).
(3) For the purposes of paragraph (2)(c)(ii), references in regulation 8(1) to a debtor are to be read as a reference to the other creditor.
42.—(1) Subject to paragraph (2), a sale of controlled goods by public auction may only be held in a public auction house or on an online or internet auction site.
(2) The sale may be held on premises where goods were found by the enforcement agent where those premises are occupied solely for the purposes of a trade or business.
43. Where controlled goods are sold by public auction, the auction must be conducted by—
(a)a qualified auctioneer; or
(b)where the auction takes place online or on an internet auction site, an auction provider independent of the enforcement agent.
PART 4SECURITIES OF THE DEBTOR
Part 4 only to apply to securities
44. This Part only applies to controlled goods which are securities.
45.—(1) The enforcement agent may hold securities until they mature.
(2) While holding securities, the enforcement agent must ensure each security has the benefit of the same protection in every respect (for example, from damage, destruction, theft or unauthorised or fraudulent interference) as that security had immediately before the enforcement agent took control of it.
46.—(1) The minimum period of notice required by paragraph 49(1) of Schedule 12 (which requires the enforcement agent to give notice to the debtor, etc. of the disposal of securities) is 7 clear days.
(2) Subject to paragraph (3), the notice must be in writing, be signed by the enforcement agent and contain the following information—
(d)for each security, sufficient details of the security to enable the debtor or any co-owner to identify the security correctly;
(e)that the securities may be disposed of by—
(i)realising the sums secured or made payable by them;
(ii)the creditor issuing proceedings 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; or
(iii)the creditor assigning the right to sue for the recovery of such sums to another person;
(f)the date and time when the sums will be realised, where sub-paragraph (e)(i) applies;
(g)the amount of the sum outstanding as at the date of the notice;
(h)the date and time by which the sum outstanding must be paid to prevent the securities being disposed of;
(i)how and between which hours and on which days payment of the sum outstanding may be made; and
(j)the procedure for release to the debtor or co-owner of the securities of which control has been taken on payment of the sum outstanding or on part payment of the sum outstanding where an agreement is made between the enforcement agent and the debtor.
(3) Where paragraph (2)(e)(ii) or (iii) applies, the notice must also provide the following information—
(a)the name and address of the applicant to the proceedings;
(b)the names and addresses of the defendants to the proceedings; and
(c)the amount of the claim—
(i)in respect of each security; and
(ii)in total.
(4) The enforcement agent may replace the notice with a new notice, in accordance with paragraph 49(4) of Schedule 12, only if—
(a)the method of disposal under paragraph (2)(e) has changed; or
(b)the date or time of the disposal under paragraph (2)(f) has had to be re-arranged,
and the new notice complies with the requirements of paragraph (5).
(5) Where the notice is replaced with a new notice under paragraph (4)—
(a)the minimum period of notice given in the new notice must be the same period as in the notice which is to be replaced; and
(b)the new notice must provide the following information—
(i)the information required by paragraph (2);
(ii)the information required by paragraph (3), where paragraph (2)(e)(ii) or (iii) applies;
(iii)that it is a new notice;
(iv)that it replaces the last notice given to the debtor or co-owner; and
(v)the date of the notice which it replaces.
(6) The method of giving the notice is the method required under regulation 8(1) (method of giving notice) and for the purposes of this regulation, references in that regulation to a debtor include a co-owner.
PART 5ABANDONMENT OF GOODS
47.—(1) This regulation applies where, pursuant to paragraph 54(1)(b) of Schedule 12, the enforcement agent makes controlled goods, which are abandoned, available for collection by the debtor.
(2) Where the goods are immobilised, the enforcement agent must on (but not before) collection by the debtor, remove all immobilisation devices from the goods.
(3) Where the enforcement agent removed the goods from where they were found the enforcement agent must as soon as reasonably practicable give the debtor a written notice, signed by the enforcement agent, which must contain the following information—
(c)that the controlled goods are abandoned and the reason why they are abandoned;
(d)a list of the abandoned goods with a description to enable the debtor to identify the goods correctly, including, where applicable—
(iii)the material, colour and usage, and (where appropriate) any other identifying characteristic of the goods;
(e)that the goods are available for collection by the debtor;
(f)the procedure for collection of the goods by the debtor; and
(g)that if the debtor fails to collect the goods within 28 days from when the goods were made available for collection, the enforcement agent will make an application to the court for determination of how the uncollected goods are to be disposed of.
(4) The method of giving the notice is the method required under regulation 8(1) (method of giving notice).
(5) Where the debtor fails to collect the controlled goods within 28 days from when the goods were made available for collection, the enforcement agent must apply to the court to determine how the uncollected goods are to be disposed of.
(6) On application by the enforcement agent under paragraph (5), the court may make one of the following orders—
(a)that the goods are to be made available for collection by the debtor during a further period of time (to be determined by the court);
(b)that the goods are to be—
(i)given to a charitable organisation nominated by the court; or
(ii)destroyed; or
(c)that the goods are to be made available for collection by the debtor during a further period of time (to be determined by the court) and, if not collected during that period, are to be—
PART 6THIRD PARTY CLAIMING CONTROLLED GOODS
48. This Part applies where a person (“the applicant”) makes an application to the court claiming that goods of which control has been taken are that person’s and not the debtor’s.
Payments into court by third party: underpayments
49.—(1) Any underpayment to be determined by reference to an independent valuation under paragraph 60(5) of Schedule 12 must be undertaken by a qualified independent valuer.
(2) Any underpayment determined by the qualified independent valuer must be paid within 14 clear days after provision of a copy of the valuation to the applicant.
PART 7COMMERCIAL RENT ARREARS RECOVERY (CRAR)
Part 7 to apply only to CRAR
50. This Part only applies to debts enforceable under section 72 of the Act.
51. Where a landlord gives authorisation under section 73(8) of the Act to a person to exercise CRAR on the landlord’s behalf, the authorisation must—
(a)only authorise an enforcement agent; and
(b)be in writing, be signed by the landlord and provide the following information—
(i)the date of authorisation;
(ii)the landlord’s name and contact details;
(iii)the name and contact details of the person authorised to act on behalf of the landlord;
(iv)sufficient detail to enable the authorised person to identify the commercial premises in respect of which CRAR may now be exercised on the landlord’s behalf;
(v)the amount of rent owed; and
(vi)the period in relation to which the rent is owed.
Minimum amount of net unpaid rent for CRAR to become exercisable
52. The minimum amount of net unpaid rent for the purposes of section 77(3) of the Act is an amount equal to 7 days’ rent.
Notice to sub-tenant: when notice takes effect and service
53.—(1) A notice served on any sub-tenant under section 81(2) of the Act takes effect 14 clear days after the notice is served on that sub-tenant.
(2) The notice must be served on the sub-tenant by a method required under regulation 8(1) (method of giving notice).
Notice to sub-tenant: form and contents
54. The notice must be in writing, be signed by the landlord and contain the following information—
(a)the landlord’s name, reference and contact details and the date of the notice;
(b)the amount of rent the landlord has the right to recover from the immediate tenant by CRAR (the notified amount);
(c)that while the notified amount remains unpaid, the sub-tenant must pay the sub-tenant’s rent directly to the landlord instead of to the immediate tenant, as a discharge for any rent payable by the sub-tenant under the sub-lease, until—
(i)the notified amount has been paid (by payments under the notice or otherwise); or
(ii)the notice is replaced or withdrawn; and
(d)that the landlord may withdraw the notice in accordance with regulation 55.
Notice to sub-tenant: withdrawal of notice
55. A notice served on any sub-tenant under section 81(2) of the Act is withdrawn if the landlord provides written notice to the sub-tenant who received that notice that it is withdrawn.
These Regulations make provision relating to the procedure for taking control of goods under Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (“the Act”). The Act provides a new statutory code in relation to taking control of goods in order to sell them to enforce the payment of debts (formerly known as “distress”). By section 62 of the Act, the Schedule 12 procedure is available where an enactment, writ or warrant confers the power to use the procedure.
The Regulations also make provision in relation to the procedure for commercial rent arrears recovery under section 72 of the Act.
Part 1 of the Regulations provides for general interpretation (regulation 2), application of the Regulations (regulation 3) and for those categories of goods which are exempt from enforcement under Schedule 12 (regulations 4 and 5). These broadly reflect the necessities of life. Since goods can include items such as a houseboat, which may be a person’s home, regulation 5 specifically excludes such items.
Part 2 of the Regulations relates to the procedure for taking control of goods. Regulations 6, 7 and 8 make provision as to the notice that must be given to a debtor prior to the taking of control. Regulations 9 to 15 deal with the actual taking of control, both regarding goods on premises and goods on a highway. Particular protection is given to children and vulnerable persons (see regulation 10) so that an enforcement agent may not take control of goods where either the debtor is a child, or a child or vulnerable person (or more than one such person) is or are alone on the premises. Regulations 9 to 13 deal with the time limit for taking control, the circumstances in which control should not be taken, and the days and hours when control of goods may be taken. Regulations 14 and 15 deal with controlled goods agreements, under which the debtor is permitted to retain custody of the goods but must not remove, dispose of or permit another person to deal with them pending payment of the debt. Regulations 16 to 19 deal with securing the goods of the debtor, for example by fitting an immobilisation device.
Regulations 20 to 27 relate to entry to premises as permitted by paragraphs 14 to 16 of Schedule 12 to the Act, including the method of entry, when entry or re-entry may occur, restrictions on entry, re-entry and remaining on premises, and the necessary notice of entry where required by paragraph 19A of Schedule 12 (a specific provision relating to the use of reasonable force to re-enter premises after a controlled goods agreement has been breached – regulations 25 to 27).
Regulations 28 and 29 deal with the circumstances in which a court may issue a warrant permitting the use of reasonable force by the enforcement agent to enter premises or to take control of goods on the highway.
Regulations 30 to 35 concern the procedure following entry and taking control of goods. These regulations provide for notice requirements, the provision of an inventory to the debtor and any co-owner of the goods, and care and valuation of the controlled goods.
Part 3 (regulations 36 to 43) provides for the sale of the controlled goods (save for those which are securities). Provision is made for notice to the debtor and any co-owner of the sale (regulations 37 to 40), and for the conduct of the sale (regulations 41 to 43).
Part 4 (regulations 44 to 46) deals with goods which are securities of the debtor. Regulations 45 and 46 make provision about the holding, protection, and disposal of such securities by the enforcement agent, and also the notice procedure where the creditor exercises the right to take proceedings under paragraph 49 of Schedule 12 to the Act (by which a creditor may sue in the name of the debtor, or of any other person in whose name the debtor might have sued, for recovery of any sum secured or made payable by securities).
Part 5 (regulation 47) relates to abandonment of the goods, providing a procedure to be followed where the enforcement agent makes the controlled goods which are now abandoned available for collection by the debtor. Regulation 47 provides that, where the debtor fails to collect the goods within 28 days, the court may make orders concerning the disposal of the goods.
Part 6 (regulations 48 and 49) deals with underpayments where a person who claims that the goods of which control has been taken belong to him or her, and not the debtor, makes an application to the court under paragraph 60 of Schedule 12 to the Act.
Part 7 (regulations 50 to 55) addresses commercial rent arrears recovery procedure (known as “CRAR”). General provision is made in regulations 50 to 52 relating to authorisation by a landlord to another person to exercise CRAR on his or her behalf, and defining the minimum amount of net unpaid rent under section 77 of the Act in order for CRAR to be exercisable. Regulations 53 to 55 deal with the notice requirements for the landlord’s right to recover rent from the sub-tenant under section 81(2) of the Act, including withdrawal of such a notice.
2007 c. 15. Section 90 and Schedule 12 are prospectively amended by the Crime and Courts Act 2013 (c.22), section 25(8).