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Tribunals, Courts and Enforcement Bill [HL]


Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

209

 

(b)   

an amount in respect of future costs, calculated in accordance with

regulations.

      (2)  

An enforcement agent may take control of goods of higher value on

premises or on a highway, only to the extent necessary, if there are not

enough goods of a lower value within a reasonable distance—

5

(a)   

on a highway, or

(b)   

on premises that he has power to enter under this Schedule, either

under paragraph 14 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.

10

      (4)  

Sub-paragraph (1) does not affect the power to keep control of goods if they

rise in value once they have been taken.

Ways of taking control

13    (1)  

To take control of goods an enforcement agent must do one of the

following—

15

(a)   

secure the goods on the premises on which he finds them;

(b)   

if he finds them on a highway, secure them on a highway, 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.

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      (2)  

Any liability of an enforcement agent (including criminal liability) arising

out of his securing goods on a highway under this paragraph is excluded to

the extent that he acted with reasonable care.

      (3)  

Regulations may make further provision about taking control in any of the

ways listed in sub-paragraph (1), including provision—

25

(a)   

determining the time when control is taken;

(b)   

prohibiting 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,

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(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.

Entry without warrant

35

14    (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

40

any restriction in regulations.

      (4)  

If the enforcement agent is acting under section 67(1) (CRAR), the only

relevant premises are the demised premises.

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

210

 

      (5)  

If he is acting under section 121A of the Social Security Administration Act

1992, premises are relevant if they are the place, or one of the places, where

the debtor carries on a trade or business.

      (6)  

Otherwise premises are relevant if the enforcement agent reasonably

believes that they are the place, or one of the places, where the debtor—

5

(a)   

usually lives, or

(b)   

carries on a trade or business.

Entry under warrant

15    (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

10

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

15

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 regulations.

20

Re-entry

16    (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.

25

      (3)  

This paragraph authorises repeated entry to the same premises.

General powers to use reasonable force

17         

Where paragraph 18 or 19 applies, an enforcement agent may if necessary

use reasonable force to enter premises or to do anything for which the entry

is authorised.

30

18         

This paragraph applies if these conditions are met—

(a)   

the enforcement agent has power to enter the premises under

paragraph 14 or 16 or under a warrant under paragraph 15;

(b)   

he is acting under an enforcement power conferred by a warrant of

control under section 76(1) of the Magistrates’ Courts Act 1980 (c. 43)

35

for the recovery of a sum adjudged to be paid by a conviction;

(c)   

he is entitled to execute the warrant by virtue of section 125A

(civilian enforcement officers) or 125B (approved enforcement

agencies) of that Act.

19    (1)  

This paragraph applies if these conditions are met—

40

(a)   

the enforcement agent has power to enter the premises under

paragraph 16;

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

211

 

(b)   

he reasonably believes that the debtor carries on a trade or business

on the premises;

(c)   

he is acting under an enforcement power within sub-paragraph (2).

      (2)  

The enforcement powers are those under any of the following—

(a)   

a writ or warrant of control issued for the purpose of recovering a

5

sum payable under a High Court or county court judgment;

(b)   

section 61(1) of the Taxes Management Act 1970 (c. 9);

(c)   

section 121A(1) of the Social Security Administration Act 1992 (c. 5);

(d)   

section 51(A1) of the Finance Act 1997 (c. 16);

(e)   

paragraph 1A of Schedule 12 to the Finance Act 2003 (c. 14).

10

Application for power to use reasonable force

20    (1)  

This paragraph applies if an enforcement agent has power to enter premises

under paragraph 14 or 16 or under a warrant under paragraph 15.

      (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

15

to do anything for which entry is authorised.

21    (1)  

This paragraph applies if an enforcement agent is applying for power to

enter premises under a warrant under paragraph 15.

      (2)  

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

20

premises or to do anything for which entry is authorised.

22    (1)  

The court may not issue a warrant under paragraph 20 or include provision

under paragraph 21 unless it is satisfied that prescribed conditions are met.

      (2)  

A warrant under paragraph 20 or provision included under paragraph 21

may require any constable to assist the enforcement agent to execute the

25

warrant.

Other provisions about powers of entry

23         

Paragraphs 24 to 30 apply where an enforcement agent has power to enter

premises under paragraph 14 or 16 or under a warrant under paragraph 15.

24    (1)  

The power to enter and any power to use force are subject to any restriction

30

imposed by or under regulations.

      (2)  

A power to use force does not include power to use force against persons,

except to the extent that regulations provide that it does.

25    (1)  

The enforcement agent may enter and remain on the premises only within

prescribed times of day.

35

      (2)  

Regulations may give the court power in prescribed circumstances to

authorise him to enter or remain on the premises at other times.

      (3)  

The authorisation—

(a)   

may be by order or in a warrant under paragraph 15;

(b)   

may be subject to conditions.

40

26    (1)  

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—

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

212

 

(a)   

his identity, and

(b)   

his authority to enter the premises.

      (2)  

The request may be made before the enforcement agent enters the premises

or while he is there.

27    (1)  

The enforcement agent may take other people onto the premises.

5

      (2)  

They may assist him in exercising any power, including a power to use force.

      (3)  

They must not remain on the premises without the enforcement agent.

      (4)  

The enforcement agent may take any equipment onto the premises.

      (5)  

He may leave equipment on the premises if he leaves controlled goods there.

28    (1)  

After entering the premises the enforcement agent must provide a notice for

10

the debtor giving information about what the enforcement agent is doing.

      (2)  

Regulations must state—

(a)   

the form of the notice;

(b)   

what information it must give.

      (3)  

Regulations may prescribe circumstances in which a notice need not be

15

provided after re-entry to premises.

      (4)  

If the debtor is on the premises when the enforcement agent is there, the

enforcement agent must give him the notice then.

      (5)  

If the debtor is not there, the enforcement agent must leave the notice in a

conspicuous place on the premises.

20

      (6)  

If the enforcement agent knows that there is someone else there or that there

are other occupiers, a notice he leaves under sub-paragraph (5) must be in a

sealed envelope addressed to the debtor.

29         

If the premises are occupied by any person apart from the debtor, the

enforcement agent must leave at the premises a list of any goods he takes

25

away.

30         

The enforcement agent must leave the premises as effectively secured as he

finds them.

Goods on a highway

31    (1)  

If the enforcement agent applies to the court it may issue a warrant which

30

authorises him to use, if necessary, reasonable force to take control of goods

on a highway.

      (2)  

The court may not issue a warrant unless it is satisfied that prescribed

conditions are met.

      (3)  

The warrant may require any constable to assist the enforcement agent to

35

execute it.

      (4)  

The power to use force is subject to any restriction imposed by or under

regulations.

      (5)  

The power to use force does not include power to use force against persons,

except to the extent that regulations provide that it does.

40

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

213

 

32    (1)  

The enforcement agent may not exercise any power under this Schedule on

a highway except within prescribed times of day.

      (2)  

Regulations may give the court power in prescribed circumstances to

authorise him to exercise a power at other times.

      (3)  

The authorisation may be subject to conditions.

5

33    (1)  

If the enforcement agent takes control of goods on a highway or enters a

vehicle on a highway with the intention of taking control of goods, he must

provide a notice for the debtor giving information about what he is doing.

      (2)  

Regulations must state—

(a)   

the form of the notice;

10

(b)   

what information it must give.

      (3)  

If the debtor is present when the enforcement agent is there, the enforcement

agent must give him the notice then.

      (4)  

Otherwise the enforcement agent must deliver the notice to any relevant

premises (as defined by paragraph 14) in a sealed envelope addressed to the

15

debtor.

Inventory

34    (1)  

If an enforcement agent takes control of goods he must provide the debtor

with an inventory of them as soon as reasonably practicable.

      (2)  

But if there are co-owners of any of the goods, the enforcement agent must

20

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 the 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—

25

(a)   

the inventory of those goods, and

(b)   

a copy of the notice under paragraph 28.

      (4)  

Regulations must state—

(a)   

the form of an inventory, and

(b)   

what it must contain.

30

Care of goods removed

35    (1)  

An enforcement agent must take reasonable care of controlled goods that he

removes from the premises or highway where he finds them.

      (2)  

He must comply with any provision of regulations about their care while

they remain controlled goods.

35

Valuation

36    (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 regulations;

(b)   

give the debtor, and separately any co-owner, an opportunity to

40

obtain an independent valuation of the goods.

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

214

 

      (2)  

In this paragraph “minimum period” means the period specified by

regulations under—

(a)   

paragraph 48, in the case of securities;

(b)   

paragraph 39, in any other case.

Best price

5

37    (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.

      (2)  

That does not apply to money that can be used for paying any of the

outstanding amount, unless the best price is more than its value if used in

that way.

10

Sale

38         

Paragraphs 39 to 42 apply 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.

39    (1)  

The sale must not be before the end of the minimum period except with the

15

agreement of the debtor and any co-owner.

      (2)  

Regulations must specify the minimum period.

40    (1)  

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.

      (2)  

Regulations must state—

20

(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.

      (3)  

The enforcement agent may replace a notice with a new notice, subject to any

25

restriction in regulations.

      (4)  

Any notice must be given within the permitted period.

      (5)  

Unless extended the permitted period is 12 months beginning with the day

on which the enforcement agent takes control of the goods.

      (6)  

Any extension must be by agreement in writing between the creditor and

30

debtor before the end of the period.

      (7)  

They may extend the period more than once.

41    (1)  

The sale must be by public auction unless the court orders otherwise.

      (2)  

The court may make an order only on an application by the enforcement

agent.

35

      (3)  

Regulations may make provision about the types of sale the court may order.

      (4)  

In an application for an order under sub-paragraph (2) 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.

40

 

 

Tribunals, Courts and Enforcement Bill [HL]
Schedule 12 — Taking control of goods
Part 2 — The procedure

215

 

      (5)  

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 regulations (or until the court is satisfied that an

enforcement power is not exercisable by the other creditor against the debtor

or a co-owner).

5

42         

Regulations 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.

Place of sale

10

43    (1)  

Regulations may make provision about the place of sale of controlled goods.

      (2)  

They may prescribe circumstances in which the sale may be held on

premises where goods were found by the enforcement agent.

      (3)  

Except where the regulations provide otherwise, the sale may not be held on

those premises without the consent of the occupier.

15

      (4)  

Paragraphs 44 to 46 apply if the sale may be held on those premises.

44    (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.

20

      (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.

45    (1)  

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

25

(b)   

his authority to enter and hold the sale on the premises.

      (2)  

The request may be made before the enforcement agent enters the premises

or while he is there.

46         

The enforcement agent must leave the premises as effectively secured as he

finds them.

30

Holding and disposal of securities

47         

Paragraphs 48 and 49 apply to securities as controlled goods.

48    (1)  

Regulations may make provision about how securities are to be held and

disposed of.

      (2)  

In this Schedule, references to disposal include, in relation to securities,

35

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)  

Regulations may in particular make provision for purposes corresponding

to those for which provision is made in this Schedule in relation to the

disposal of other controlled goods.

40

 

 

 
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