3Postponement of rights of persons lending or selling in consideration of share of profits in case of insolvency

#### 3 Postponement of rights of persons lending or selling in consideration of share of profits in case of insolvency 3 Postponement of rights of persons lending or selling in consideration of share of profits in case of insolvency > In the event of any person to whom money has been advanced by way of loan upon such a contract as is mentioned in the last foregoing section, or of any buyer of a goodwill in consideration of a share of the profits of the business being adjudged a bankrupt, entering into an arrangement to pay the person’s creditors less than one hundred cents in the dollar, or dying in insolvent circumstances, the lender of the loan shall not be entitled to recover anything in respect of the loan, and the seller of the goodwill shall not be entitled to recover anything in respect of the share of profits contracted for, until the claims of the other creditors of the borrower or buyer for valuable consideration in money or money’s worth have been satisfied. > > **s 3:** Am 1965 No 33, First Sch; 1994 No 32, Sch 3.