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Vesting in Official Assignee of sums to credit of certain client accounts.
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7.—(1) (a) Where an auctioneer or house agent is adjudicated bankrupt or where, being an arranging debtor, he vests his estate in the Official Assignee for realisation anddistribution amongst his creditors, then, notwithstanding anything contained in section 6 or in any other enactment, there shall vest in the Official Assignee the sum to the credit of every client account kept by that auctioneer or house agent.
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(b) Where an auctioneer or house agent files a petition for arrangement but does not vest his estate in the Official Assignee, the creditors who are clients, or a section thereof (being at least three-fifths in number and value of those who, as clients, have proved debts to the amount of £20) may apply to a judge of the High Court for the time being exercising jurisdiction in bankruptcy matters for an order vesting in the Official Assignee the sum to the credit of every client account kept by the auctioneer or house agent, and the judge may, if he thinks it proper to do so and the Official Assignee consents, make such an order, which shall have effect accordingly.
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(2) Upon a vesting under subsection (1) (whether by virtue of paragraph (a) thereof or of an order under paragraph (b) thereof) in the Official Assignee—
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(a) the rights of creditors against the deposit maintained in the High Court shall vest in him and no order shall thereafter be made under section 11 (3) (b) in relation to the deposit;
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(b) he shall notify the Accountant of the vesting;
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(c) notwithstanding that an order in respect of any such client account may have been under section 11 (4), a banking company shall be entitled to pay over to him the sum to the credit of that account and shall pay over that sum to him upon demand by him;
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(d) he shall proceed to administer the client account or accounts for the benefit of the clients and the law of bankruptcy (including this Act) shall apply to such administration.
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(3) The administration under subsection (2) of a client account by the Official Assignee shall for all purposes be deemed to be business assigned to the Office of the Official Assignee in Bankruptcy and transacted therein.
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