Fraudulent conveyances and preferences

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  • (a) If a person being insolvent, or in contemplation of insolvency, within 90 days before the making of any assignment, makes a sale, assignment, transfer, or other conveyance of any description of any part of his property, to a person who then has reasonable cause to believe him to be insolvent or in contemplation of insolvency, and such sale, assignment, transfer, or other conveyance is made with a view to prevent the property from coming to his assignee in insolvency, or to prevent the same from being distributed under the laws relating to insolvency, or to defeat the object of or in any way to impair, hinder, impede or delay the operation and effect of, or to evade any said provisions, the sale, assignment, transfer, or conveyance shall be void, and the assignee may recover the property or the assets of the insolvent. If such sale, assignment, transfer, or conveyance is not made in the usual and ordinary course of business of the debtor, that fact shall be prima facie evidence of such cause of belief.

  • (b) If a person being insolvent, or in contemplation of insolvency, within 90 days before the making of the assignment, with a view to giving a preference to a creditor or person who has a claim against him, procures any part of his property to be attached, sequestered, or seized on execution, or makes any payment, pledge, assignment, transfer, or conveyance of any part of his property, either directly or indirectly, absolutely or conditionally, the person receiving such payment, pledge, assignment, transfer, or conveyance, or to be benefited thereby, having reasonable cause to believe such person is insolvent, or is in contemplation of insolvency, and that such payment, pledge, assignment, or conveyance is made in fraud of the laws relating to insolvency, the same shall be void, and the assignee may recover the property, or the value of it, from the person so receiving it or so to be benefited.


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