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Section 323: Limits on recovery

Insolvency Act · PART IV: PROVISIONS APPLICABLE TO BANKRUPTCY AND WINDING UP

consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

323. Limits on recovery The Court shall not make an order setting aside a transaction under section 321 against a person where the person proves that, when he received the property— (a) he acted in good faith; (b) a reasonable person in his position would not have suspected that the debtor was, or would become, unable to pay his due debts; and (c) he gave value for the property or altered his position in the reasonably held belief that the transfer of the property to him was valid and would not be set aside.

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