HC Deb 18 July 1985 vol 83 c606

Amendments made: No. 150, in page 133, line 25, leave out subsection (7) and insert— '(7) Subject to subsections (7A) and (9) below, the time at which an individual enters into a transaction at an undervalue or gives a preference is a relevant time for the purposes of this section if the transaction is entered into or the preference is given—

  1. (a)in the case of a transaction at an undervalue, at a time in the period of five years ending with the day of the presentation of the bankruptcy petition on which that individual is adjudged bankrupt;
  2. (b)in the case of a preference which is not a transaction at an undervalue and is given to a person who is an associate of that individual, at a time in the period of two years ending with that day; and
  3. (c)in any other case of a preference which is not a transaction at an undervalue, at a time in the period of six months ending with that day; and

(7A) Where an individual enters into a transaction at an undervalue or gives a preference at a time mentioned in paragraph (a) or (b) of subsection (7) above, not being, in the case of a transaction at an undervalue, a time less than two years before the end of the period mentioned in the said paragraph (a), that time shall not be a relevant time for the purposes of this section unless the individual—

  1. (a)is insolvent at that time; or
  2. (b)becomes insolvent in consequence of the transaction or preference; but the requirements of this subsection shall be presumed to be satisfied, unless the contrary is shown, in relation to any transaction at an undervalue which is entered into by an individual with a person who is an associate of his.'.

No. 151, in page 133, line 43 leave out from 'if' to end of line 12 on page 134, and insert—

  1. (a) he is unable to pay his debts as they fall due; or
  2. (b)the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.

(9) A transaction entered into or preference given by a person who is subsequently adjudged bankrupt on a petition under section 112(1)(d) above shall be treated as having been entered into or given at a relevant time for the purposes of this section if it was entered into or given at any time on or after the date specified for the purposes of this subsection in the criminal bankruptcy order on which the petition was based.'.—[Mr. Fletcher.]

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