Clause 37

Subject to this section and section 116B, the Official Assignee is not liable to incur any expense in relation to the realisation and distribution of a bankrupt’s property unless there is sufficient available property in the bankrupt’s estate.(2) The court may, on the application of a creditor, direct the Official Assignee to incur a particular expense on condition that the creditor indemnifies the Official Assignee in respect of the recovery of the amount expended and, if the court so directs, gives such security to secure the amount of the indemnity as the court thinks reasonable.(3) Nothing in this section relieves the Official Assignee of any obligation under section 86A, 86B, 86C, 86D, 86E or 86F.(4) Nothing in this section relieves a trustee in bankruptcy of any obligation to submit or serve a document (including a report) to or on the Official Assignee under any provision of this Act by reason only that the trustee in bankruptcy would be required to incur expense in order to perform that obligation.Official Assignee not to incur further expenses if majority in value of debts owed to institutional creditors116B.—

The Official Assignee is not liable to incur any expense in relation to the realisation and distribution of a bankrupt’s property, other than expenses in relation to payments made towards the target contribution —

if, and only so long as, the relevant condition is met; and

if the Official Assignee has given to every creditor who has filed a proof of debt, a notice in writing in accordance with subsection (2).(2) After the expiry of the time within which creditors are required under section 88A(2) to file their proof of debt, if the Official Assignee is satisfied that the relevant condition is met, the Official Assignee may give to each of the bankrupt’s creditors who has filed a proof of debt, a notice in writing —

informing the creditors that the Official Assignee is satisfied that the relevant condition is met;

informing the creditors that they may wish to consider making an application under section 33 for the appointment of a person other than the Official Assignee to act as the trustee of the bankrupt’s estate; and

providing a summary of the administration of the bankrupt’s estate that contains such particulars as may be prescribed.(3) Nothing in this section relieves the Official Assignee of any obligation under section 86A, 86B, 86C, 86D, 86E, 86F or 88A.(4) In this section —“institutional creditor” has the same meaning as in section 33(3), except that the reference, in paragraph (c)(ii) of the definition of “institutional creditor” in section 33(3), to the date of the application for the bankruptcy order referred to in section 33(1A) is to be read as a reference to the date of the bankruptcy application on which the bankrupt was adjudged bankrupt;“relevant condition” means a majority in value of the total debts of the bankrupt that have been proved (and are not withdrawn) are owed to one or more persons who are either an institutional creditor or a subsidiary of an institutional creditor.”.