Section 32: Transaction in good faith and for value

32. Transaction in good faith and for value (1) A transaction between the bankrupt and any other person under which, after adjudication, the bankrupt acquires property, or property passes to the bankrupt shall be valid against the Official Receiver where— (a) the other person deals with the bankrupt in good faith and for value; and (b) the transaction is completed without an intervention by the Official Receiver. I14 – 27 [Issue 3] Insolvency Act (2) Where the other person is the bankrupt’s bank, a transaction dealing with the bankrupt for value includes— (a) the receipt by the bank of any money, security, or negotiable instrument from the bankrupt or by the bankrupt’s order or direction; (b) a payment by the bank to the bankrupt or by the bankrupt’s order or direction; and (c) the delivery by the bank of a security or negotiable instrument to the bankrupt or by the bankrupt’s order or direction. (3) A payment of money or delivery of property by a legal personal representative to, or direction of, the bankrupt is a transaction for value.