Division Postponement of claims of lender of mone - Bankruptcy Act 1924 - Postponement of claims of lender of money at rate of interest varying with profits of business.

Where money has been advanced, by way of loan, to a bankrupt, who was engaged or about to engage in any business, on a contract with the bankrupt that the lender shall receive a rate of interest varying with the profits, or shall receive a share of the profits arising from carrying on the business, or, where the bankrupt is the buyer of a goodwill in consideration of a share of the profits of the business, the lender of the loan shall not be entitled to claim any dividend as a creditor in respect of his loan, and the seller of the goodwill shall not be entitled to claim any dividend in respect of the share of the profits contracted for, until the claims of the other creditors of the bankrupt (other than the wife or husband of the bankrupt) for valuable consideration in money or money’s worth have been satisfied.

Postponement of claims of lender of monePostponement of claims of lender of money at rate of interest varying with profits of business.