7Postponement of rights of person lending or selling in case of bankruptcy[[1]](#endnote-2)

7 Postponement of rights of person lending or selling in case of bankruptcy[[1]](#endnote-2)

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 preceding 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 his 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 his 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.

No. 3745 s. 8.