Insolvency Act.pdf - Intax Info

Provided that if it is shown that the liabilities of the insolvent at any time after the
making of the disposition exceeded his assets by less than the value of the disposition,
it may set aside only to the extent of the excess.
(2) A disposition of property not made for value shall not, if set aside under this section
or if uncompleted by the insolvent, give rise to any claim in competition with the creditors of the
insolvent.
26. Antenuptial contracts
(1) No immediate benefit under a duly registered antenuptial contract given in good faith
by a person to his wife or child to be born of the marriage shall be liable to be set aside as a
disposition without value, unless the sequestration of his estate took place within two years of
the registration of that antenuptial contract.
(2) For the purposes of this section an "immediate benefit" means a benefit given by
transfer, conveyance, delivery, payment, cession, pledge, or special mortgage of property
completed within three months immediately after the date of the marriage.
27. Life insurance policies
(1) When a person before or during marriage has effected in favour of or ceded to or for
the benefit of his wife any policy or policies of life insurance, the policy or policies to an amount
not exceeding P4000, together with any bonus claimable in respect thereof, shall be excluded
from her estate, if she become insolvent.
(2) When a person before or during marriage has in good faith effected in favour of or
ceded to or for the benefit of his wife or child, or both, a policy or policies of life insurance at any
time more than two years before the sequestration of his estate, the policy or policies, if they are
not an immediate benefit within the meaning of section 26, whether to a wife or child or both,
shall to an amount not exceeding P4000, together with any bonus claimable in respect thereof,
be excluded from his insolvent estate, and, if the insolvent is married in community of property,
from the joint estate of the insolvent and his wife:
Provided that-
(i) every policy which, at the time of the sequestration of the estate, was ceded or pledged
to any person (other than the wife or child of the insured, or a trustee for such wife or
child) shall not, to the extent of the cession or pledge, fall under the protection of this
section;
(ii) when any policy is protected as to a part only, the person entitled to the protected part
may apply to the company by whom such policy was granted for the issue of two
policies in the place of such policy, one for the unprotected part and the other for the
protected part, in favour of the parties respectively entitled thereto; and the company
shall thereupon issue such policies at the expense of the applicant, and the original
policy shall thereupon become void; and
(iii)
for the purposes of this section, the expression, "policy of life insurance" includes a
contract for securing an insurance endowment, bonus, or annuity upon the death of the
insured, or on the expiration of any period, or on the happening of any event, as well as
a fully paid-up policy granted for the surrender or exchange of a policy of an equivalent
value, but does not include any other property acquired in consideration of the
surrender, pledge or cession of a policy.
(3) A policy of life insurance effected by a person on his own life which has endured for
three years from the date of payment of the first premium shall not, during the lifetime of the
insured, vest upon the sequestration of the estate of the insured or the assignment thereof
under this Act in the trustee or assignee of the estate:
Provided that-
(i)
(ii)
the protection afforded to a debtor under this section shall not exceed P4000 together
with any bonus claimable in respect thereof;
a policy which is pledged, to the extent to which it is pledged, and the proceeds of a
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