Section 327: Use of repayment of debtor’s contribution to property

327. Use of repayment of debtor’s contribution to property The Official Receiver or the liquidator shall use money repaid under section 326 by the recipient of a contribution by the debtor to property, or the proceeds of the sale of the property, as the case may be, by taking the following steps in order— (a) first, the Official Receiver or liquidator shall keep as much of the proceeds as the Official Receiver or liquidator needs, when added to the other assets in the debtor’s estate, to pay the creditors in full including interest; (b) second, if there is a surplus after the creditors have been paid in full, the Official Receiver or liquidator shall pay as much of the surplus to the recipient of the property to which the debtor has contributed as the Official Receiver or liquidator first retained; and [Issue 3] I14 – 176 Revised Laws of Mauritius (c) third, the Official Receiver or liquidator shall not pay any sum to the debtor before the Official Receiver or liquidator has taken the steps in paragraphs (a) and (b). Sub-Part V – Distribution of Assets