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s 51

Debt appropriation order, effect of

In force
Part 4Enforcing monetary judgments
Division 5Appropriating debts owed to a judgment debtor

51 Debt appropriation order, effect of

(1)

A debt appropriation order takes effect when it is served on the third person.

(2)

A debt appropriation order has effect according to its contents subject to —

(a)

Schedule 1 clause 2 and any order made under that clause; and

(b)

any order made under Schedule 1 clause 3; and

(c)

any order made under Schedule 1 clause 4.

(3)

If an appropriated debt is payable to the judgment debtor in full at one time, the third person must pay the full debt to the judgment creditor —

(a)

if the debt is due and payable to the judgment debtor at the time the order is made — within 7 days after the day on which the debt appropriation order is served on the third person; or

(b)

in any other case — within 7 days after the day on which the appropriated debt becomes due and payable to the judgment debtor.

(4)

If an appropriated debt is payable to the judgment debtor in 2 or more instalments, the third person must pay each instalment to the judgment creditor —

(a)

if any instalment is due and payable to the judgment debtor at the time the order is made — within 7 days after the day on which the debt appropriation order is served on the third person; or

(b)

in any other case — within 7 days after the day on which the instalment becomes due and payable to the judgment debtor.

(5)

If a debt appropriation order relates to the whole or a part of an amount standing to the credit of a judgment debtor in an account with a financial institution, the order, while it is in effect, has effect as an irrevocable demand for payment, or an irrevocable notice of withdrawal, made to the institution —

(a)

under the contract between the judgment debtor and the institution in respect of the account; and

(b)

on —

(i)

the date when the order is served on the institution; or

(ii)

if the judgment debtor is not entitled under the contract to make a demand for payment or give notice of withdrawal on that date — the date on which the judgment debtor would, but for the order, have become so entitled.

(6)

A debt appropriation order ceases to have effect —

(a)

when the third person is notified of the fact by the court or the judgment creditor; or

(b)

when the third person is notified that an objection has been allowed under section 55; or

(c)

when the judgment debt is satisfied; or

(d)

when an order cancelling it has effect under section 103,

whichever happens first.

(7)

If a debt appropriation order ceases to have effect or the judgment debt to which it relates is satisfied, the judgment creditor must immediately notify the third person.

Penalty: Imprisonment for 12 months.

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