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Paragraph 15 Protection of creditors against forfeiture

Original text. Later amendments are not shown.

(1)

Where by virtue of paragraph 14(3) property falls to be dealt with in insolvency proceedings, the Governor shall be taken to be a creditor in those proceedings for a debt to the amount or value of the property.

(2)

The Governor’s debt—

(a)

shall rank after the debts of all other creditors, and

(b)

shall not be paid until they have been paid in full with interest under the relevant provision.

(3)

In sub-paragraph (2)(b) the “relevant provision” means—

(a)

in relation to the winding up of a company, the provision of the law for the time being in force in the Territory relating to such winding up on insolvency that provides for the payment, from any surplus remaining after the payment of debts proved on the winding up, of interest on those debts in respect of the periods during which they have been outstanding since the company went into liquidation, and

(b)

in relation to a bankruptcy, the provision of the law for the time being in force in the Territory relating to bankruptcy that provides for the payment, from any surplus remaining after the payment of debts that are preferential or rank equally under such law, of interest on those debts in respect of the periods during which they have been outstanding since the commencement of the bankruptcy.

(4)

Sub-paragraphs (2) and (3) apply notwithstanding any other law for the time being in force in the Territory.