Technical and Further Education Bill (HC Bill 82)

(ii) payable in priority to any charge arising under sub-
5paragraph (3);

(b) if the terms of the loan provide for this paragraph to apply,
any sum that must be paid by the company in respect of
the loan or interest shall be treated as an unsecured debt
that is not a preferential debt,

(c) 10if the terms of the loan provide for this paragraph to apply,
any sum that must be paid by the company in respect of
the loan or interest shall be payable after all other creditors
have been paid in full.””

30 Paragraph 100 (joint and concurrent administrators) is to have effect as if
15sub-paragraph (2) were omitted.

31 Paragraph 101(3) (joint administrators) is to have effect as if after “87 to”
there were inserted “91, 98 and”.

32 Paragraph 103 (appointment of additional administrators) is to have effect
as if—

(a) 20in sub-paragraph (2) the words from the beginning to “order” were
omitted,

(b) for paragraph (a) there were substituted—

“(a) the appropriate national authority, or”, and”

(c) sub-paragraphs (3) to (5) were omitted.

(ba) 25Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g), (i) and (l) to (n) were omitted.

34 Paragraph 109 (references to extended periods) is to have effect as if “or 108”
were omitted.

35 Paragraph 111 (interpretation) is to have effect as if the following were
substituted for it—

“111 (1) 30In this Schedule—

• “administrative receiver” has the meaning given by section
  251,

• ““appropriate national authority”—

  (a)

  in relation to a company conducting a designated
  35further education institution in England, means the
  Secretary of State;

  (b)

  in relation to a company conducting a designated
  further education institution in Wales, means the
  Welsh Ministers;

• 40“designated further education institution” has the meaning
  given by section 4;

• “education administrator” includes a reference to a former
  education administrator, where the context requires;

• “enters education administration” has the meaning given by
  45paragraph 1;

• “floating charge” means a charge which is a floating charge
  on its creation;

Technical and Further Education BillPage 47

• “governing body”, in relation to a designated further
  education institution, means any board of governors of the
  institution or any persons responsible for the management
  of the institution, whether or not formally constituted as a
  5governing body or board of governors;

• “hire-purchase agreement” includes a conditional sale
  agreement, a chattel leasing agreement and a retention of
  title agreement;

• “in education administration” has the meaning given by
  10paragraph 1;

• “market value” means the amount which would be realised
  on a sale of property in the open market by a willing
  vendor;

• “the relevant institution” in relation to company, means the
  15institution which the company is established to conduct;

• “senior post holder”, in relation to a relevant institution,
  means a person appointed as a senior post holder at the
  institution.

(2) For the purposes of this Schedule a reference to an education
20administration order includes a reference to an appointment
under paragraph 91 or 103.

(3) In this Schedule a reference to action includes a reference to
inaction.””

Specific modifications to section 251 of the Insolvency Act 1986

36 25Section 251 of the Insolvency Act 1986 (definitions) as applied by paragraph
1 above is to have effect as if—

(a) for the definition of “prescribed” there were substituted—

• “““prescribed” means prescribed by rules made under
  section 411 of the Insolvency Act 1986 as a result of
  30section 30 of the Technical and Further Education Act
  2016;”,”

(b) the definition of “the rules” were omitted, and

(c) at the appropriate places, there were inserted—

• “““education administration application” has the
  35meaning given by section 16 of the Technical and
  Further Education Act 2016;”,

• ““education administration order” has the meaning
  given by section 15 of the Technical and Further
  Education Act 2016;”,

• 40““education administration rules” has the meaning
  given by section 33 of the Technical and Further
  Education Act 2016;”,

• “education administrator” has the meaning given by
  section 33 of the Technical and Further Education Act
  452016;”,

• ““objective”, in relation to an education administration,
  is to be read in accordance with section 14 of the
  Technical and Further Education Act 2016;”.”

Power to add modifications

37 (1) The Secretary of State may by regulations—

(a) amend paragraph 1(3)(a) so as to add further provisions to the list of
applicable provisions in Schedule B1 to the Insolvency Act 1986;

(b) 5amend this Schedule so as to add further modifications to that
Schedule.

(2) Regulations under this paragraph are subject to the affirmative resolution
procedure.