81M—Payments out of fund where notice from creditor received
(1) This section
applies if the CE has been given notice by a person under section 81K and
has not been notified under section 81J(1) of legal proceedings against
that prisoner.
(2) The CE must not
pay any money out of the prisoner compensation quarantine fund to any person
until the end of the initial quarantine period for the fund.
(3) The CE must,
within 45 days after the end of the initial quarantine period, pay out of
the prisoner compensation quarantine fund to the persons entitled to payment
any amounts required to satisfy any judgment debt against, or entitlement to
be paid by, the prisoner—
(a) that
was notified to the CE under section 81K during the initial
quarantine period; and
(b) that
the CE is satisfied is a valid claim on the prisoner.
(4) If the amount in
the prisoner compensation quarantine fund is not sufficient to pay the amounts
required to be paid out under subsection (3), the CE must make payments
from the fund under that subsection on a proportionate basis having regard to
any priority of payment required by law.
Example—
The law may require priority to be given to payment of (for example) child
support.
(5) If any amount
remains in the prisoner compensation quarantine fund after all amounts are
paid out under subsection (3), the CE must, within or as soon as
practicable after the end of the period of 45 days after the end of the
initial quarantine period—
(a) pay
half of the remaining amount into the Victims of Crime Fund under the
Victims of Crime Act 2001 ; and
(b)
credit the other half of the remaining amount—
(i)
to the resettlement account kept in the prisoner's name
in accordance with section 31; or
(ii)
if the prisoner has been discharged from prison—to
an account nominated by the former prisoner.