Commonwealth Consolidated Acts

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Taking control of debtor's property before sequestration

             (1)  At any time after a bankruptcy notice is issued, or a creditor's petition is presented, in relation to a debtor, but before the debtor becomes a bankrupt, the Court may:

                     (a)  direct the Official Trustee or a specified registered trustee to take control of the debtor's property; and

                     (b)  make any other orders in relation to the property.

          (1A)  The Court may give a direction or make an order only if:

                     (a)  a creditor has applied for the Court to make a direction; and

                     (b)  the Court is satisfied that it is in the interests of the creditors to do so; and

                     (c)  the debtor has not complied with the bankruptcy notice.

          (1B)  If the Court directs a trustee to take control of the debtor's property, the Court must specify when the control is to end.

             (2)  Without limiting the generality of subsection (1), the Court may, at any time after giving a direction under subsection (1), summon the debtor, or an examinable person in relation to the debtor, for examination under this section in relation to the debtor.

             (3)  A summons to a person under subsection (2) shall require the person to attend:

                     (a)  at a specified place and at a specified time on a specified day; and

                     (b)  before the Court, the Registrar or a magistrate, as specified in the summons;

to be examined on oath under this section about the debtor and the debtor's examinable affairs.

             (4)  A summons to a person under subsection (2) may require the person to produce at the examination books (including books of an associated entity of the debtor) that:

                     (a)  are in the possession of the first-mentioned person; and

                     (b)  relate to the debtor or to any of the debtor's examinable affairs.

             (5)  For the purpose of the examination under this section of a person summoned under subsection (2), subsections 81(2) to (17), inclusive, apply, with any modifications prescribed by the regulations, as if:

                     (a)  a sequestration order had been made against the debtor when the Court gave the direction under subsection (1) of this section;

                     (b)  the examination were being held under section 81; and

                     (c)  a reference in those subsections to a creditor were a reference to a person who has a debt that would be provable in the debtor's bankruptcy if a sequestration order had been made as mentioned in paragraph (a) of this subsection.

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