Document ID: chunk:federal_register_of_legislation:C2006A00033:clause:1_7
Version: federal_register_of_legislation:C2006A00033
Segment Type: clause
Provision Reference: sch 1 cl 7
Character Range: 3461–4062

7  Subsection 120(3)
Repeal the subsection, substitute:

 (3) Despite subsection (1), a transfer is not void against the trustee if:
 (a) in the case of a transfer to a related entity of the transferor:
 (i) the transfer took place more than 4 years before the commencement of the bankruptcy; and
 (ii) the transferee proves that, at the time of the transfer, the transferor was solvent; or
 (b) in any other case:
 (i) the transfer took place more than 2 years before the commencement of the bankruptcy; and
 (ii) the transferee proves that, at the time of the transfer, the transferor was solvent.