PART I EXTENSION OF TIME TO PAY DEBTS

Miscellaneous

12 Sequestration and insolvency.

1

While a time to pay direction or a time to pay order is in effect, the creditor shall not be entitled to found on the debt concerned in presenting, or in concurring in the presentation of, a petition for the sequestration of the debtor’s estate.

2

A time to pay direction or a time to pay order shall cease to have effect—

a

on the granting of an award of sequestration of the debtor’s estate;

b

on the granting by the debtor of a voluntary trust deed whereby his estate is conveyed to a trustee for the benefit of his creditors generally; or

c

on the entering by the debtor into a composition contract with his creditors.