Section 21

Where a debt due to a moneylender in respect of a loan made by him includes interest, that interest shall, for the purposes of the provisions of the Bankruptcy Act [Cap. 20], be calculated at a rate not exceeding 4% per annum, but nothing in the foregoing provision shall prejudice the right of the moneylender to receive out of the estate, after all the debts proved in the estate have been paid in full, any higher rate of interest to which he may be entitled.

No proof of a debt due to a moneylender in respect of a loan made by him shall be admitted for any of the purposes of the Bankruptcy Act unless the affidavit verifying the debt has exhibited thereto a statement which complies with section 20 and shows, where the amount of interest included in the unpaid balance represents a rate per cent per annum exceeding 4%, the amount of interest which would be so included if it were calculated at the rate of 8% per annum.

Where property is vested in the Official Assignee by reason of any adjudication or vesting order or other order having the like effect, made under the provisions of the Bankruptcy Act or which is the subject of a composition or scheme of arrangement approved thereunder, but where no dividend has been declared or payment by way of dividend has been made, subsections (1) and (2) shall apply notwithstanding that the order vesting the property or a receiving order made in respect of it was made or the composition or scheme of arrangement was approved or any debt provable or payable in respect of it was incurred before the date of the commencement of this Act.

General rules may be made under the Bankruptcy Act for the purpose of carrying into effect the objects of this section.