990
THE HONGKONG GOVERNMENT GAZETTE, 7TH NOVEMBER, 1891. -
Voluntary aattlements.
Avoidance of preferences in certain cases.
Protection
of bona fide transaction without
notice.
of the petition and if the debtor is adjudged bankrupt the balance shall be paid out to the Trustee in the bank- ruptcy who shall be entitled to retain the same as against the execution creditor but otherwise it shall be dealt with as if no bankruptcy petition had been presented.
(3.) An execution completed as aforesaid is not invalid by reason only of its being an act of bankruptcy and a person who purchases the property of the debtor in good faith under a sale shall in all cases acquire a good title to them as against the Trustee in bankruptcy.
40. (1.) Any settlement of property not being a settle- ment made before and in consideration of marriage or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration or a settlement made on or for the wife or children of the settler of property which has accrued to the settlor after marriage in tight of his wife shall if the settlor becomes bankrupt within two years after the date of the settlement be void against the Trustee in bankruptcy and shall if the settlor becomes bankrupt · at any subsequent time within ten years after the date of the settlement be void against the Trustee in the bankruptcy unless the parties claiming under the set- tlement can prove that the settlor was at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement and that the interest of the settlor in such property had passed to the Trustee of such settlement on the execution thereof.
(2.) Any covenant or contract made in consideration of marriage, for the future settlement on or for the settlor's wife or children of any money or property wherein he had not at the date of his marriage any estate or interest, whether vested or contingent in possession or remainder, and not being money or property of or in right of his wife, shall, on his becoming bankrupt before the property or money has been actually transferred or paid pursuant to the con tract or covenant, be void against the trustee in the bank- ruptcy.
(3.) "Settlement" shall for the purposes of this section include any conveyance or transfer of property.
41. (1.) Every conveyance or transfer of property or charge thereon made every payment made every obligation incurred and every judicial proceeding taken or suffered by any person unable to pay his debts as they become due from his own money in favour of any creditor or any person in trust for any creditor with a view of giving such creditor. a preference over the other creditors shall if the person making taking paying or suffering the same is adjudged bankrupt on a bankruptcy petition presented within four months after the date of making taking paying or suffering the same be deemed fraudulent and void as against the Trustee in the bankruptcy.
(2.) This section shall not affect the rights of any person making title in good faith and for valuable consideration through or under a creditor of the bankrupt.
42. Subject to the foregoing provisions of this Ordinance.* with respect to the effect of bankruptcy on an execution or attachment and with respect to the avoidance of certain settlements and preferences nothing in this Ordinance shall invalidate in the case of a bankruptcy-
(a.) Any payment by the bankrupt to any of his
creditors.
(b.) Any payment or delivery to the bankrupt. (c.) Any conveyance or assignment by the bankrupt
for valuable consideration.
(d.) Any contract dealing or transaction by or with the bankrupt for valuable consideration, Provided that both the following conditions are complied with namely:-
(a.) The payment delivery conveyance assignment contract or transaction as the case may be takes place before the date of the receiving order and (b.) The person (other than the debtor) to by or with whom the payment delivery conveyance assign- ment, contract dealing or transaction was made executed or entered into has not at the time of the payment delivery conveyance assignment contract dealing or transaction notice of any available act of bankruptey committed by the bankrupt before that time,