Section 47
Avoidance of certain settlements
(1)
Any settlement of property not being -
(a)
a settlement made before and in consideration of marriage or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration; or
(b)
a settlement made on or for the wife or children of the settlor of property which has accrued to the settlor after marriage in right of his wife, shall -
(i)
if the settlor becomes bankrupt within 2 years after the date of the settlement, be void against the trustee in the bankruptcy; and
(ii)
if the settlor becomes bankrupt at any subsequent time within 10 years after the date of the settlement, be void against the trustee in the bankruptcy, unless the parties claiming under the settlement can prove that the settlor was at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement and that the interest of the settlor in such property passed to the trustee of such settlement on the execution thereof.
(2)
Any covenant or contract made by any person (hereinafter called the settlor) in consideration of his or her marriage, either for the future payment of money for the benefit of the settlor's wife, husband or children or for the future settlement on or for the settlor's wife, husband or children of property, wherein the settlor had not at the date of the marriage any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property in right of the settlor's wife or husband, shall if
Bankruptcy
CAP. 67 57
the settlor is adjudged bankrupt and the covenant or contract has not been executed at the date of the commencement of his bankruptcy, be void against the trustee in the bankruptcy except so far as it enables the persons entitled under the covenant or coi~tract to claim for dividend in the settlor's bankruptcy under or in respect of the covenant or contract, but any such claim to dividend shall be postponed until all claims of the other creditors for valuable consideration in money or money's worth have been satisfied.
(3)
Any payment of money (not being payment of premiums on a policy of life assurance), or any transfer of property made by the settlor in pursuance of such a covenant or contract as aforesaid, shall be void against the trustee in the settlor's bankruptcy unless the persons to whom the payment or transfer was made prove that -
(a)
the payment or transfer was made more than 2 years before the date of the commencement of the bankruptcy;
(b)
at the date of the payment or transfer, the settlor was able to pay all his debts without the aid of the money so paid or the property so transferred; or
(c)
the payment or transfer was made in pursuance of a covenant or contract to pay or transfer money or property expected to come to the settlor from or on the death of a particular person named in .the covenant or contract and was made within 3 moilths after the money or property came into the possession or under the control of the settlor, but, in the event of any such payment or transfer being declared void, the persons to whom it was made shall be entitled to claim for dividend under or in respect of the covenant or contract in like manner as if it had not been executed at .the commencement of the bankru~tcv.
I .'
(4)
For the purposes of this section, "settlement" shall include any conveyance or transfer of property.