Winding-up and Restructuring Act

Marginal note:Payments by company within thirty days

• 101 (1) Every payment made within thirty days next before the commencement of the winding-up under this Act by a company unable to meet its engagements in full, to a person who knows of that inability or has probable cause for believing that inability exists, is void, and the amount paid may be recovered back by the liquidator by suit or action in any court of competent jurisdiction.

• Marginal note:Restoration of security

  (2) Where any valuable security is given in consideration of a payment described in subsection (1), the security or the value thereof shall be restored to the creditor on the return of the payment.

• Marginal note:Exception

  (3) Subsection (1) does not apply to a payment made in connection with financial collateral in accordance with the provisions of an eligible financial contract.