S.L. 386.16 Art. 10Segregation of cellular assets.

(1) In every transaction entered into by a securitisation cell company, there shall be implied the following terms, namely that -

(a) no party shall seek, whether in any proceedings or by any other means whatsoever, to make or attempt to use any cellular assets attributable to any cell of the company to satisfy a liability not attributable to that cell; and

(b) if any party succeeds by any means whatsoever in using any cellular assets attributable to any cell of the company to satisfy a liability not attributable to that cell, that party shall be liable to the securitisation cell company to pay a sum equal to the value of the benefit thereby obtained by him.

(2) Any asset or sum recovered by a securitisation cell company under the implied term set out in sub-regulation (1)(b) or by any other means whatsoever in the events referred to in that paragraph shall, after the deduction or payment of any costs of recovery, be applied by the company so as to compensate the cell affected.

(3) In the event of an executive warrant being issued or enforced on a securitisation cell company in respect of any cellular assets attributable to a cell and in respect of a liability not attributable to that cell, and in so far as such assets or compensation in respect thereof cannot otherwise be restored to the cell affected, the company shall -

(a) cause or procure its auditor, acting as expert and not as arbitrator, to certify the value of the assets lost by the cell affected; and

(b) transfer or pay to the cell affected, from the cellular or non-cellular assets to which the liability was attributable, assets or sums sufficient to restore to the cell affected the value of the assets lost.