Section 23: Application of Act to assignees

23. Application of Act to assignees (1) Subject to subsection (1A), this Act shall continue to apply to any debt due to a moneylender in respect of— (a) money lent by him; M66 – 11 [Issue 1] Moneylenders Act (b) interest on money so lent; or (c) the benefit of any agreement made or security taken in respect of the debt or interest, notwithstanding that the debt, the benefit, the agreement or security may have been assigned to any assignee, and, except where the context otherwise requires, references in this Act to a moneylender shall accordingly be construed as including any such assignee. (1A) Notwithstanding this Act— (a) any agreement with, or security taken by, a moneylender in respect of money lent by him shall be valid in favour of any bona fide assignee or holder for value without notice of any defect due to the operation of this Act and of any person deriving title under him; (b) any payment or transfer of money or property made bona fide by any person on the faith of the validity of the agreement or security, without notice of the defect shall, in favour of that person, be as valid as it would have been if the agreement or security had been valid; and (c) the provisions of this Act limiting the time for proceedings in respect of money lent shall not apply to any proceedings in respect of any such agreement or security commenced by a bona fide assignee or holder for value without notice that the agreement or security was affected by this Act, or by any person deriving title under him, but in every such case the moneylender shall indemnify the borrower or any other person who is prejudiced by virtue of this section, and nothing in this subsection shall render valid an agreement or security in favour of, or apply to proceedings commenced by, an assignee or holder for value who is himself a moneylender. (2) This section shall not render valid for any purpose any agreement, security, or other transaction which would, apart from this Act, have been void or unenforceable.