657022-1890-Bill-Bankruptey-Ordinance — Page 15

1184

THE HONGKONG GOVERNMENT GAZETTE, 29TH NOVEMBER, 1890.

Avoidance of preferences in certain cases.

Protection

of bona fide transactiona without

antice

Posenasion

14 Trustee

• Seizure of property of Bankrut.

set-

bankruptcy unless the parties claiming under the 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 executon thereof.

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 sball 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 Ordinan- ce 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.

(5.) Any payment or delivery to the bankrupt. (e.) Any conveyance or assignment by the bankrupt

for valuable consideration.

(4.) 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 (4.) 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 conveyanco assignment contract dealing or transaction notice of any available act of bankruptcy committed by the bankrupt before that time.

Realisation of Property.

43. (1.) The Trustee shall as soon as may be take possession of the deeds books and documents of the bankrupt and all other parts of his property capable of manual delivery.

(2.) The Trustee shall in relation to and for the purpose of nequiring or retaining possession of the property of the bankrupt be in the same position as if he were a receiver of the property appointed by the Supreme Court and the Court may on his application enforce such acquisition or retention accordingly.

(3.) Where any part of the property of the bankrupt consists of stock shares in ships shares or any other property transferable in the books of any company office or person the Trustee may exercise the right to transfer the property to the same extent as the bankrupt might have exercised it if he had not become bankrupt.

(4.) Where any part of the property of the bankrupt consists of things in action such things shall be deemed to have been assigned to the Trustee.

(5.) Any officer clerk or servant or any person acting as banker attorney or agent of a bankrupt shall pay and deliver to the Trustee all moneys and securities in his possession or power which is not by law entitled to retain as against the Lankrupt or the Trustee. If he does not he shall be guilty of a contempt of Court and may be punished accordingly on the application of the Trustee.

44. Any person acting under warrant of Court may seize any part of the property of a bankrupt in the custody or possession of the bankrupt or of any other person and with a view to such seizure may break open any house building or room of the bankrupt where the bankrupt is supposed to be or any building or receptacle of the bank- rupt where any of his property is supposed to be and when the Court is satisfied that there is reason to believe that property of the Lankrupt is concealed in a house or place