(1) This section applies if, under an agreement made before the administration of a company began, the company continues to use or occupy, or to be in possession of, property of which someone else is the owner or lessor. (2) Subject to this section, the administrator is liable for so much of the rent or other amounts payable by the company under the agreement as is attributable to a period:

(a)

that begins more than 7 days after the administration began; and

(b)

throughout which:

(i)

the company continues to use or occupy, or to be in possession of, the property; and

(ii)

the administration continues.

(3) Within 7 days after the beginning of the administration, the administrator may give to the owner or lessor a notice that specifies the property and states that the company does not propose to exercise rights in relation to the property. (4) Despite subsection (2), the administrator is not liable for so much of the rent or other amounts payable by the company under the agreement as is attributable to a period during which a notice under subsection (3) is in force, but such a notice does not affect a liability of the company. (5) A notice under subsection (3) ceases to have effect if:

(a)

the administrator revokes it by writing given to the owner or lessor; or

(b)

the company exercises, or purports to exercise, a right in relation to the property.

(6) For the purposes of subsection (5), the company does not exercise, or purport to exercise, a right in relation to the property merely because the company continues to occupy, or to be in possession of, the property, unless the company:

(a)

also uses the property; or

(b)

asserts a right, as against the owner or lessor, so to continue.

(7) Subsection (2) does not apply in relation to so much of a period as elapses after:

(a)

a receiver of the property is appointed; or

(b)

a chargee appoints an agent, under the provisions of a charge on the property, to enter into possession, or to assume control, of the property; or

(c)

a chargee takes possession, or assumes control, of the property under the provisions of a charge on the property;