Section 471 | Determination of shares etc.

(1)For the purposes of this Chapter—

(a)rights under a policy or contract which are beneficially owned by two or more persons jointly, and

(b)an interest in such rights which is so owned,

are treated as if they were beneficially owned by those persons in equal shares.

(2)Subsections (3) and (4) apply if immediately before a chargeable event the rights under the policy or contract are, or a share in those rights is, held as security for one or more debts owed by two or more persons.

(3)Each of those persons is treated for the purposes of this Chapter as the sole debtor for a separate debt.

(4)The appropriate share of the security for the actual debt or debts, so far as it consists of the rights under the policy or contract or a share in them, is treated for the purposes of this Chapter as the security for each separate debt.

(5)In subsection (4) “the appropriate share” means—

(a)if there is only one actual debt for which the person is liable as between the debtors, a share proportionate to the share of that debt for which the person is so liable, and

(b)if there are two or more such actual debts, a share proportionate to the share of the total such debts for which the person is so liable.

(6)For the purposes of this section, property held for the purposes of a foreign institution is treated as being beneficially owned by the institution.

(7)An interest in some or all of the rights under a policy or contract which is not a share in all those rights is treated for the purposes of this Chapter as such a share in those rights as may, on a just and reasonable apportionment, be regarded as representing the interest.