Order 50 shall be amended by substituting, for rules 1 to 8, the following rules:—
Order imposing a charge on a beneficial interest
(1)
(1) The power to make a charging order under section 1 of the Charging Orders Act 1979 (referred to in this Order as “ the Act ”) shall be exercisable by the Court.
(2) An application by a judgment creditor for a charging order in respect of a judgment debtor's beneficial interest may be made ex parte , and any order made on such an application shall in the first instance be an order, made in Form No. 75 in Appendix A, to show cause, specifying the time and place for further consideration of the matter and imposing the charge in any event until that time.
(3) The application shall be supported by an affidavit—
(a) identifying the judgment or order to be enforced and stating the amount unpaid at the date of the application;
(b) stating the name of the judgment debtor and of any creditor of his whom the applicant can identify;
(c) giving full particulars of the subject matter of the intended charge, including, in the case of securities other than securities in court, the full title of the securities, their amount and the name in which they stand and, in the case of funds in court, the number of the account; and
(d) verifying that the interest to be charged is owned beneficially by the judgment debtor.
(4) Unless the Court otherwise directs, an affidavit for the purposes of this rule may contain statements of information or belief with the sources and grounds thereof.
(5) An application may be made for a single charging order in respect of more than one judgment or order against the debtor.
Service of notice of order to show cause
(2)
(1) On the making of an order to show cause, notice of the order shall, unless the Court otherwise directs, be served as follows:—
(a) a copy of the order, together with a copy of the affidavit in support, shall be served on the judgment debtor;
(b) where the order relates to securities other than securities in court, copies of the order shall also be served
(i) in the case of government stock for which the Bank of England keeps the register, on the Bank of England;
(ii) in the case of government stock to which (i) does not apply, on the keeper of the register;
(iii) in the case of stock of any body incorporated within England and Wales, on that body, or, where the register is kept by the Bank of England, on the Bank of England;
(iv) in the case of stock of any body incorporated outside England and Wales or of any state or territory outside the United Kingdom, being stock registered in a register kept in England and Wales, on the keeper of the register;
(v) in the case of units of any unit trust in respect of which a register of the unit holders is kept in England and Wales, on the keeper of the register;
(c) where the order relates to a fund in court, a copy of the order shall be served on the Accountant General at the Court Funds Office; and
(d) where the order relates to an interest under a trust, copies of the order shall be served on such of the trustees as the Court may direct.
(2) Without prejudice to the provisions of paragraph (1), the Court may, on making the order to show cause, direct the service of copies of the order, and of the affidavit in support, on any other creditor of the judgment debtor or on any other interested person as may be appropriate in the circumstances.
(3) Documents to be served under this Rule must be served at least seven days before the time appointed for the further consideration of the matter.
Order made on further considerations
(3)
(1) On the further consideration of the matter the Court shall either make the order absolute, with or without modifications, or discharge it.
(2) Where the order is made absolute, it shall be made in Form No. 76 in Appendix A, and where it is discharged, the provisions of rule 7, regarding the service of copies of the order of discharge, shall apply.
Order imposing a charge on an interest held by a trustee
(4)
(1) Save as provided by this rule, the provisions of rules 1, 2 and 3 shall apply to an order charging an interest held by a trustee as they apply to an order charging the judgment debtor's beneficial interest.
(2) Instead of verifying the judgment debtor's beneficial ownership of the interest to be charged, the affidavit required by rule 1(3) shall state the ground on which the application is based and shall verify the material facts.
(3) On making the order to show cause, the Court shall give directions for copies of the order, and of the affidavit in support, to be served on such of the trustees and beneficiaries, if any, as may be appropriate.
(4) Rules 5, 6 and 7 shall apply to an order charging an interest held by a trustee as they apply to an order charging the judgment debtor's beneficial interest, except that, where the order is made under subsection (ii) or (iii) of section 2(1)(b) of the Act, references in those rules to “the judgment debtor” shall be references to the trustee.
(5) Forms No. 75 and 76 in Appendix A shall be modified so as to indicate that the interest to be charged is held by the debtor as trustee or, as the case may be, that it is held by a trustee (to be named in the order) on trust for the debtor beneficially.
Effect of order in relation to securities out of court
(5)
(1) No disposition by the judgment debtor of his interest in any securities to which an order to show cause relates made after the making of that order shall, so long as that order remains in force, be valid as against the judgment creditor.
(2) Until such order is discharged or made absolute, the Bank of England (or other person or body served in accordance with rule 2(1)(b)) shall not permit any transfer of any of the securities specified in the order, or pay any dividend, interest or redemption payment in relation thereto, except with the authority of the Court, and, if it does so, shall be liable to pay the judgment creditor the value of the securities transferred or, as the case may be, the amount of the payment made or, if that value or amount is more than sufficient to satisfy the judgment or order to which such order relates, so much thereof as is sufficient to satisfy it.
(3) If the Court makes the order absolute, a copy of the order, including a stop notice as provided in Form No. 76 in Appendix A, shall be served on the Bank of England, or on such other person or body specified in rule 2(1)(b) as may be appropriate and, save as provided in rule 7(5), rules 11 to 14 shall apply to such a notice as they apply to a stop notice made and served under rule 11.
(4) This rule does not apply to orders in respect of securities in court.
Effect of order in relation to funds in court
(6)
(1) Where an order to show cause has been made in relation to funds in court (including securities in court) and a copy thereof has been served on the Accountant General in accordance with rule 2, no disposition by the judgment debtor of any interest to which the order relates, made after the making of that order, shall, so long as the order remains in force, be valid as against the judgment creditor.
(2) If the Court makes the order absolute, a copy of the order shall be served on the Accountant General at the Court Funds Office.
Discharge, etc. , of charging order
(7)
(1) Subject to paragraph (2), on the application of the judgment debtor or any other person interested in the subject matter of the charge, the Court may, at any time, whether before or after the order is made absolute, discharge or vary the order on such terms (if any) as to costs or otherwise as it thinks just.
(2) Where an application is made for the discharge of a charging order in respect of the judgment debtor's land on the ground that the judgment debt has been satisfied, the applicant shall state in his application, and the Court shall specify in its order, the title number of the land in the case of registered land, and the entry number of any relevant land charge in the case of unregistered land.
(3) Notice of an application for the discharge or variation of the order shall be served on such interested parties as the Court may direct.
(4) Where an order is made for the discharge or variation of a charging order in respect of funds in court, a copy thereof shall be served on the Accountant General at the Court Funds Office.
(5) Where an order is made for the discharge or variation of a charging order in respect of securities other than securities in court, a copy thereof shall be served on the Bank of England or on such other person or body specified in rule 2(1)(b) as may be appropriate, and the service thereof shall discharge, or, as the case may be, vary, any stop notice in respect of such securities which may be in force pursuant to the original order.