Proceeds of Crime (Consequential Amendments and Transitional Provisions) Act 2002 (86 of 2002)

Schedule 4   Bankruptcy

Part 1   Effect of proceeds of crime orders

Bankruptcy Act 1966

24   After section 185Q

Insert:

185QA - Terminating a debt agreement by special resolution of creditors

(1) A debt agreement is terminated by the passing of a special resolution to that effect by a meeting of creditors called for the purpose if:

(a) property of the debtor is covered by a restraining order or a forfeiture order; or

(b) a pecuniary penalty order made against the debtor is in force.

(2) However:

(a) paragraph (1)(a) does not apply if, when the debt agreement was made, the restraining order or forfeiture order already covered the property in question; and

(b) paragraph (1)(b) does not apply if, when the debt agreement was made, the pecuniary penalty order was already in force against the debtor.