How goods subject to conditional bill of sale to be dealt with
110 How goods subject to conditional bill of sale to be dealt with
If goods the subject of a writ for the levy of property (being goods in the possession of the judgment debtor) are the subject of a conditional bill of sale, the Sheriff may sell the judgment debtor’s interest in the goods without taking possession of them.
On receiving written notice of the purchase of the judgment debtor’s interest, the person having the benefit of the bill of sale (the holder of the bill) may take possession of the goods and, if he or she does so, is taken to hold them for the use of the purchaser, subject to the purchaser’s due payment of any amounts payable under the bill of sale.
If the goods are subsequently sold under the bill of sale, and there is any surplus remaining from the proceeds of sale after the debt to the holder of the bill is satisfied, the holder must pay the surplus to the purchaser, and, accordingly, the amount of that surplus is recoverable by the purchaser from the holder as a debt.
Nothing in this section affects the right of any judgment creditor to test the validity of any bill of sale by interpleader.
This Act’s bill:Explanatory memorandumSecond reading speech
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