(1)Where this section applies, the court may make the following provision if—
(a)there is no agreement under section 271, and
(b)the court thinks it just and equitable to do so.
(2)The recovery order may provide—
(a)for the associated property to vest in the trustee for civil recovery or (as the case may be) for the excepted joint owner’s interest to be extinguished, or
(b)in the case of an excepted joint owner, for the severance of his interest.
(3)A recovery order making any provision by virtue of subsection (2)(a) may provide—
(a)for the trustee to pay an amount to the person who holds the associated property or who is an excepted joint owner, or
(b)for the creation of interests in favour of that person, or the imposition of liabilities or conditions, in relation to the property vested in the trustee,
or for both.
(4)In making any provision in a recovery order by virtue of subsection (2) or (3), the court must have regard to—
(a)the rights of any person who holds the associated property or who is an excepted joint owner and the value to him of that property or, as the case may be, of his share (including any value which cannot be assessed in terms of money),
(b)the enforcement authority’s interest in receiving the realised proceeds of the recoverable property.
(5)If—
(a)[F828 a property freezing order, an interim receiving order, a prohibitory property order or an F828] interim administration order applied at any time to the associated property or joint tenancy, and
(b)the court is satisfied that the person who holds the associated property or who is an excepted joint owner has suffered loss as a result of the [F829order mentioned in paragraph (a) F829] ,
a recovery order making any provision by virtue of subsection (2) or (3) may require the enforcement authority to pay compensation to that person.
(6)The amount of compensation to be paid under subsection (5) is the amount the court thinks reasonable, having regard to the person’s loss and to any other relevant circumstances.
[F830 (7)In subsection (5) the reference to the enforcement authority is, in the case of an enforcement authority in relation to England and Wales or Northern Ireland, a reference to the enforcement authority which obtained the property freezing order or interim receiving order concerned.F830]
362.This section applies where no agreement can be reached under section 274, but the court thinks it would be just and equitable to make provision concerning associated property or joint property. In such cases, the recovery order may provide for the associated property to vest in the trustee; for an excepted joint owner's interest in the property to be extinguished; or for an excepted joint owner's interest to be severed from the recoverable property (subsection (2)). Where the associated property vests in the trustee or the excepted joint owner's interest is extinguished, the order may provide for the trustee to make a payment in lieu, or for there to be conditions attached to the property in favour of the persons concerned (subsection (3)). There is also provision for the court to create interests in favour of the person with the joint interest or associated property interest. So, for example, the court might order that a joint owner’s interest in a house be extinguished, but might at the same time create a right for him to live in the house for his lifetime (as well, perhaps, as ordering that he be paid compensation). In deciding what provision to make, the court must have regard to the rights of the persons and the value to them of the property, as well as the interest of the enforcement authority (subsection (4)). Where a person who holds associated property or is an excepted joint owner has suffered loss as a result of an interim receiving order or interim administration order applying to the property, the recovery order may require the enforcement authority to pay compensation of an amount which the court thinks reasonable, having regard to the person’s loss and any other relevant circumstances (subsections (5) and (6)).