38
Avoidance of preferences in certain
cases.
46 & 47 Vict. c. 52 s. 48.
Protection of bona fide
transactions without notice.
Ib. s. 49.
Possession of property by Trustee.
Ib. s. 50.
No. 7.] THE ORDINANCES OF HONGKONG: [A.D. 1891
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 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 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 preceding 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,
(1.) any payment by the bankrupt to any of his creditors; or (2.) any payment or delivery to the bankrupt; or
(3.) any conveyance or assignment by the bankrupt for valuable consideration; or
(4.) any contract, dealing, or transaction by or with the bankrupt for valuable consideration:
Provided that both the following conditions are complied with, namely,-
(1.) the payment, delivery, conveyance, assignment, contract, dealing or transaction, as the case may be, takes place before the date of the receiving order; and
(2.) the person (other than the debtor) to, by, or with whom the payment, delivery, conveyance, assignment, contract, dealing, 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 bankruptcy committed by the bankrupt before that time.
Realization 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 acquiring 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 Court
Page 25
Page 26
38
Avoidance of preferences in certain
cases.
46 & 47 Fiet. c. 52 s. 48.
Protection of bona fide
transactions without notice.
Ib. a. 49.
Possession of property by Trustee.
b. s. 50.
No. 7.] THE ORDINANCES OF HONGKONG: [A.D. 1891
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 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 sud creditor a preference over the other creditors, shall, if the person making taking, paying, or suffering the same is adjudged bankrupt on bankruptcy petition presented within four months after the date 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 credito of the bankrupt.
+42. Subject to the preceding 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,
(1.) any payment by the bankrupt to any of his creditors; or (2.) any payment or delivery to the bankrupt; or
(3.) any conveyance or assignment by the bankrupt for valuable
consideration; or
(4.) any contract, dealing, or transaction by or with the bankrupt for
valuable consideration:
Provided that both the following conditions are complied with namely,-
(1.) the payment, delivery, conveyance, assignment, contract, dealing or transaction, as the case may be, takes place before the date of the receiving order; and-
(2.) the person (other than the debtor) to, by, or with whom the payment, delivery, conveyance, assignment, contract, dealing, 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 bankruptcy committed by the bankrupt before that time.
Realization 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 acquirin 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 Court
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