233 Liability of cellular assets

(1) Subject to the provisions of subsection (2), and to the terms of any
recourse agreement, where any liability arises which is attributable to a

particular cell of a protected cell company —

(a) the cellular assets attributable to that cell are liable; and

(b) the liability is not a liability of any protected assets.

(2) In the case of loss or damage which is suffered by a particular cell of a
protected cell company and which is caused by fraud perpetrated by or
upon the core or another cell, the loss or damage is the liability solely of
the company‘s core assets or (as the case may be) that other cell‘s assets,
without prejudice to any liability of any person other than the company.

(3) Any liability not attributable to a particular cell of a protected cell
company is the liability solely of the company‘s core assets.

(4) Notwithstanding the above provisions of this section, the liabilities under
subsection (1)(a) of the cellular assets attributable to a particular cell of a
protected cell company shall abate rateably until the value of the
aggregate liabilities equals the value of those assets: but the provisions of
this subsection do not apply in any situation where there is a recourse
agreement or where any of the liabilities of the company‘s cellular assets
arises from fraud such as is referred to in subsection (2).

(5) This section has extra-territorial application.