(1) Sections 178, 186, 315 and 345 of the Insolvency Act 1986 or Articles 152, 157, 288 and 318 of the Insolvency (Northern Ireland) Order 1989 (power to disclaim onerous property and court’s power to order rescission of contracts, &c) do not apply in relation to -

(a) a transfer order; or

(b) a contract for the purpose of realising collateral security.

In the application of this paragraph in Scotland, the reference to sections 178, 315 and 345 shall be construed as a reference to any rule of law having the like effect as those sections.

(2) In Scotland, a permanent trustee on the sequestrated estate of a defaulter or a liquidator or a trustee under a protected trust deed granted by a defaulter is bound by any transfer order given by that defaulter and by any such contract as is mentioned in paragraph (1)(b) notwithstanding section 42 of the Bankruptcy (Scotland) Act 1985 or any rule of law having the like effect applying in liquidations or any like provision or rule of law affecting the protected trust deed.