Document ID: chunk:federal_register_of_legislation:C2025C00185:section:561
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 561
Character Range: 1892133–1893000

561  Priority of employees' claims over circulating security interests
  So far as the property of a company available for payment of creditors other than secured creditors is insufficient to meet payment of:
 (a) any debt referred to in paragraph 556(1)(e), (g) or (h); and
 (b) any amount that pursuant to subsection 558(3) or (4) is a cost of the winding up, being an amount that, if it had been payable on or before the relevant date, would have been a debt referred to in paragraph 556(1)(e), (g) or (h); and
 (c) any amount in respect of which a right of priority is given by section 560;
payment of that debt or amount must be made in priority over the claims of a secured party in relation to a circulating security interest created by the company and may be made accordingly out of any property comprised in or subject to the circulating security interest.