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BANKRUPTCY AMENDMENT ACT 1980 No. 12 of 1980 - SECT 69

Declaration and distribution of dividends
69. (1) Section 140 of the Principal Act is amended-

   (a)  by omitting from sub-section (1) "sub-section (7)" and substituting

"this section"; and

   (b)  by omitting sub-sections (3), (4), (5), (6) and (7) and substituting
        the following sub-sections:



"(3) The trustee shall, before declaring the first dividend-

   (a)  cause notice of his intention to do so to be published in the
        prescribed manner; and

   (b)  send notice of his intention to do so to each person who, to his
        knowledge, claims to be, or might claim to be, a creditor but has not
        lodged a proof of debt.



"(4) The trustee shall, in a notice published or sent in pursuance of
sub-section (3), specify a reasonable period within which creditors may lodge
their proofs of debts.



"(5) The trustee shall, before declaring a dividend (other than the first
dividend or the final dividend) send notice of his intention to do so to each
person who, to his knowledge, claims to be, or might claim to be, a creditor
but has not lodged a proof of debt and has not been sent a notice under this
section in relation to the declaration of a previous dividend.



"(6) The trustee shall, in a notice sent in pursuance of sub- section (5),
specify a reasonable period within which creditors may lodge their proofs of
debts.



"(7) Where the trustee has sent a notice in pursuance of sub- section (3) or
(5) of this section in relation to the declaration of a dividend, the trustee
shall not declare the dividend until after the expiration of 21 days after the
expiration of the period specified in the notice.



"(8) Subject to sub-sections (9) and (10), where the trustee declares a
dividend, he shall send to each creditor who has proved his debt a cheque for
the amount due to him and a statement in accordance with the prescribed form
in relation to the realization and distribution of the estate.



"(9) The trustee shall not pay to a creditor a dividend that is less than 50
cents.



"(10) Where a creditor has furnished to the trustee an authority in writing to
pay a dividend due to the creditor to another person, the dividend payable to
the creditor may be paid, and the statement to be sent to the creditor in
pursuance of sub-section (8) may be sent, to that person.".

(2) Notwithstanding the amendments of section 140 of the Principal Act made by
sub-section (1) of this section, where before the commencement of this section
a trustee has caused notice of his intention to declare a dividend to be
published in the manner required by section 140 of the Principal Act, the
provisions of that section of the Principal Act continue to apply, after the
commencement of this section, in relation to the declaration and distribution
of the dividend as if those amendments had not been made. 


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