Section 58 — Protection of Personal and Property Rights Act 1988: Notional preservation of character of assets converted

58 Notional preservation of character of assets converted (1) Where any property (including money) is derived from any sale, mortgage, charge, or other disposition of any other property belonging to a person subject to a property order pursuant to any powers conferred by or under this Act or any former corresponding Act, the person whose property is so disposed of, and anyone claiming through that person, shall have the same interest in the property so derived, so far as it has not been applied or spent or disposed of in accordance with any powers so conferred, as he or she would have had in the property disposed of if no disposition had been made, and the surplus property so derived shall be deemed to be of the same nature as the property disposed of. (2) In any such case, the manager may, for the purpose of giving better effect to the provisions of subsection (1) of this section, carry to a separate account an amount representing the property so derived, or any balance for the time being remaining. (3) While an amount stands to the credit of that separate account, any payments from the property of the person subject to a property order shall be made out of any other property properly available for the purpose, except so far as the manager decides that the payment should be made wholly or partly from the separate account. (4) Subject to subsection (5) of this section, this section shall apply in all cases, whether the property was so derived before or after the commencement of this Act, but shall not apply to any property so derived by the disposition of any property belonging to a mentally defective person who died before the 18th day of October 1957 (being the date of the commencement of the Mental Health Amendment Act 1957), unless the Court had, in the lifetime of that person, made an order that would have been authorised by section 60 of this Act if it had then been in force. (5) No distribution that has been made before the commencement of this Act of property affected by any such order shall be disturbed by reason of this section or of section 59 or section 60 of this Act. (6) This section shall not apply to income arising from any such property so derived during the lifetime of the person subject to a property order.