Part 3: Protection for Learners Chapter 2: Education Administration and Administration of Further Education Bodies Section 25: Further education bodies in education administration: transfer schemes
This section amends Schedule 2, 3 and 4 to the Technical and Further Education Act 2017. This clarifies that, where a transfer scheme looks to transfer assets subject to secured creditor’s rights free of that security, a transfer scheme may only be made upon either consent of the secured creditor in relation to the amount attributed to the secured asset over which the lender holds security and payment of that amount, or a court order (i.e. subject to paragraph 71 of Schedule B1 of the Insolvency Act 1986, with modifications).
	This amendment confirms the Government’s response to the technical consultation for the insolvency regime for further education and sixth form colleges and the Technical and Further Education Act 2017 in June 2018: see page 16, question 4 (Insolvency regime for further education and sixth form colleges) .