Insolvency Act.pdf - Intax Info

(2) When the Master is satisfied that the conditions specified in subsection (1) have been
complied with he shall register the deed and deliver to the assignee, upon his finding security to
the satisfaction of the Master for the full value of the estate and upon payment of fees payable
by him, a certificate of appointment in the Form G set out in the First Schedule.
(3) The certificate or a duly certified copy thereof shall be the only admissible evidence
of the assignee's appointment.
(4) The date of the registration of the deed shall be the date of the assignment.
(5) Every act purporting to have been done by the assignee in terms of the deed before
delivery to him of that certificate, except in so far as that act was done under this Act or was
necessary for the better preservation of the debtor's property, shall be of no effect and the
assignee shall be personally liable for the consequences thereof.
(6) For the purposes of this section and section 124 no creditor shall be reckoned in
number unless his claim amounts to at least P60, and in computing the value of the claim there
shall be reckoned only the amount due after deducting the value of any security which the
creditor may hold for his claim.
126. Attestation of signatures to deed of assignment
(1) The execution of the deed by the debtor and by the assignee under the deed shall be
attested by a legal practitioner, notary, justice of the peace, commissioner of oaths or a police
officer of or above the rank of sub-inspector.
(2) All other signatories to the deed shall be attested by at least one witness.
(3) Any person executing a deed on behalf of a creditor shall lodge with the Master the
power of attorney, or other evidence of authority, or a duly certified copy thereof, whereby he is
authorized to sign; otherwise he shall be deemed not to have executed the deed.
127. Effect of registration of deed of assignment
(1) From and after registration as aforesaid the deed shall be binding upon all creditors
of the debtor (whether they have assented thereto or not) whose claims were due or the cause
of whose claims arose before the date of the assignment; but no condition shall be inserted in
the deed whereby any creditor may obtain, as against a creditor who has not executed the
deed, any advantage or benefit to which he would not be entitled if the estate of the debtor were
to be placed under sequestration.
(2) If any such term or condition is inserted in the deed it shall be of no effect.
(3) The immediate effect of the registration of the deed shall be-
(a) to vest in the assignee the estate of the debtor as fully and effectually as if the estate
were under sequestration;
(b) to relieve the debtor from every debt which was due or the cause of which arose before
the date of the assignment, but subject always to the deed of assignment:
Provided that the registration of the deed shall not affect the liability of any person
who is a surety for the debtor;
(c) to stay all legal proceedings against the debtor for any liquidated claim provable
against the estate; whereupon the taxed costs of such proceedings by the plaintiff may
be added to his claim provable against the estate;
(d) to suspend every other action and all proceedings therein by or against the debtor,
except such as, if he were insolvent, he would be entitled to commence or continue for
his own benefit; every action so suspended may be continued by or against the
assignee in like manner and upon the like terms as to notice as if he were the trustee
of an insolvent estate;
(e)
to enable the debtor, if in prison for debt, to apply to the court for his release after
notice to the creditor at whose suit he is so imprisoned.
(4) The additional effect of the registration of the deed of assignment of the estate of one
of two spouses shall be to vest in the assignee all the property of the spouse whose estate has
not been assigned, mutatis mutandis, in the same manner, to the same extent, subject to the
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