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In This Volume

  • 5 (1) A disposition is deemed to give a creditor a preference over the other creditors under section 4, if the creditor is given, recovers or is placed in a position to recover payment, satisfaction or security for all or part of the debtor’s indebtedness, greater proportionately than could be recovered by unsecured creditors generally, or on the unsecured portion of the liabilities, out of assets of the debtor left available to judgment.
  • (2) For the purposes of subsection (1)
  • (a) a preference is not dependent on the intent or motive of the debtor or on the disposition being entered into voluntarily or under pressure, and
  • (b) no pressure by a creditor, or want of notice to the creditor alleged to have been preferred of the debtor’s circumstances, or of the effect of the disposition, protects it except as provided by section 6.