S.L. 386.10 Art. 14Liabilityofcellular assets.

(1) Subject to the provisions of regulation 15, where any liability arises which is attributable to a particular cell of a cell company -

(a) the cellular assets attributable to that cell shall be primarily used to satisfy the liability;

(b) the company’s non-cellular assets shall be secondarily used to satisfy the liability, provided that the cellular assets attributable to the relevant cell have been exhausted; and

(c) any cellular assets not attributable to the relevant cell shall not be used to satisfy the liability.

(2) Any liability not attributable to a particular cell of a cell company shall be the liability solely of the company’s non-cellular assets.

(3) Notwithstanding the above provisions of this regulation -

(a) the liabilities under sub-regulation (1)(a) of the cellular assets attributable to a particular cell of a cell company shall abate rateably until the value of the aggregate liabilities equals the value of those assets except that the provisions of this paragraph shall be disregarded in assessing the existence and extent of any secondary liability under sub-regulation (1)(b);

(b) the liabilities of the company’s non-cellular assets shall abate rateably until the value of the aggregate liabilities equals the value of those assets.

(4) This regulation shall apply to the cellular or non-cellular assets of the company wherever such assets are situated.