Section 42: Property not recoverable

42. Property not recoverable (1) Where— (a) a person disposes of property which is recoverable; and (b) the person who obtains it on the disposal does so in good faith, for value and without notice that it was recoverable property, the property may not be followed into that person’s hands and ceases to be recoverable. (2) Where property which is recoverable is vested, recovered or otherwise disposed of in pursuance of powers conferred by virtue of this Part, it ceases to be recoverable. (3) Where— (a) in pursuance of a judgment in civil proceedings, the losing party makes a payment to the claimant or the claimant otherwise obtains property from the losing party; (b) the claimant's claim is based on the losing party’s unlawful activity; and (c) apart from this subsection, the sum received, or the property obtained, by the claimant would be capable of being recovered by reason of the same unlawful activity, the sum received or property obtained ceases to be recoverable. (4) Where— (a) a payment is made to a person in pursuance of any Compensation Order or a restitution or other order made by a Court under any other enactment; and (b) apart from this subsection, the sum received would be recoverable, the property ceases to be recoverable. (5) Property shall not be recoverable while a Restriction Order or any other similar order applies to it. (6) Where— (a) a person enters into a transaction to which section 41 (2) applies; and (b) the disposal is one to which subsection (1) or (2) applies, this section shall not affect the recoverability of any property obtained on the transaction in place of the property disposed of pursuant to section 41 (2). A23A – 27 [Issue 8] Asset Recovery Act