Clause 39

Where any amount remains after the debts and expenses of the bankruptcy have been paid (called in this section the surplus), the interest referred to in subsection (2) must be paid before the bankrupt is entitled under section 122 to any of the surplus.(2) The surplus is to be paid towards interest in the following priority:

first, any higher rate of interest on a debt which any creditor may be entitled over and above the prescribed rate of interest referred to in section 94(1), from the date the interest was payable to the date of the bankruptcy order;

second, interest on each debt proved in bankruptcy, from the date of the bankruptcy order to the date that debt was paid, calculated at such rate of interest as the creditor may be entitled under an agreement or, in the absence of any such agreement, at such rate as may be prescribed.(3) For the purposes of subsection (2) —

interest on preferential debts rank equally with interest on other debts;

interest of the same class rank equally between themselves; and

if the surplus is insufficient to pay all interest of the same class, the interest in that class is to abate in equal proportions between themselves.”.