Part 2: Further Education Bodies: Insolvency etc. Chapter 3: Restrictions on Use of Normal Insolvency Procedures Sections 9 - 14: Making of ordinary administration orders; Administrator appointments by creditors etc.; Winding-up order; Voluntary winding up; Enforcement of security; Interpretation of Chapter
Chapter 3 makes provisions which ensure that the Secretary of State or, for Wales, the Welsh Ministers, are given notice before a normal insolvency procedure is commenced in relation to a further education body (which means a further education corporation or a company which runs an institution designated under s.28 of the Further and Higher Education Act 1992), so that the Secretary of State, or, for Wales, the Welsh Ministers, have an opportunity to consider whether to apply to the court for a special administration order. This allows 14 days for consideration.
	This chapter includes provision creating a moratorium on security. It ensures that no-one can take a step to enforce security over a property of a further education body without giving 14 days’ notice to the Secretary of State, or for Wales, the Welsh Ministers. This gives the Secretary of State and Ministers the opportunity to apply for an education administration order where appropriate; if this happens, a moratorium will apply (see paragraphs 43 and 44 of Schedule B1 to the Insolvency Act 1986 (as it is applied and modified by Schedules 3 and 4 to the Act, so that it works for further education bodies)).