Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p92
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 92/110)
Character Range: 385299–387919

to in paragraph (1)(c).

Creditor who gives up benefit of unfair preference may prove for preferred debt

  "588FI.(1) This section applies where:

    (a)     a transaction is an unfair preference given by a company to a creditor of the company after the commencement of this Part; and

    (b)     at the request of the company's liquidator, because of an order under section 588FF, or for any other reason, the creditor has put the company in the same position as if the transaction had not been entered into.

"(2) The Court must not make under section 588FF, on an application relating to the transaction, an order prejudicing a right or interest of the creditor.

"(3) The creditor may prove in the winding up as if the transaction had not been entered into.

Floating charge created within 6 months before relation-back day

  "588FJ.(1) This section applies if:

   (a)     a company is being wound up in insolvency; and

     (b)     the company created a floating charge on property of the company at a particular time that is at or after the commencement of this Part and:

       (i) during the 6 months ending on the relation-back day; or

       (ii) after that day but on or before the day when the winding up began.

"(2) The charge is void, as against the company's liquidator, except so far as it secures:

    (a)     an advance paid to the company, or at its direction, at or after that time and as consideration for the charge; or

  (b)     interest on such an advance; or

    (c)     the amount of a liability under a guarantee or other obligation undertaken at or after that time on behalf of, or for the benefit of, the company; or

    (d)     an amount payable for property or services supplied to the company at or after that time; or

  (e)     interest on an amount so payable.

"(3) Subsection (2) does not apply if it is proved that the company was solvent immediately after that time.

"(4) Paragraphs (2)(a) and (b) do not apply in relation to an advance so far as it was applied to discharge, directly or indirectly, an unsecured debt, whether contingent or otherwise, that the company owed to:

  (a)     the chargee; or

    (b)     if the chargee was a body corporate—a related entity of the body.

"(5) Paragraphs (2)(d) and (e) do not apply in relation to an amount payable as mentioned in paragraph (2)(d) in so far as the amount exceeds the market value of the property or services when supplied to the company.

"(6) If, during the 6 months ending on the relation-back day, or after that day but on or before the day when the winding up began, a debt secured by the charge was