Singapore legislation
Clause 363
Clause 363
Relevant time under sections 361 and 362
(1)
Subject to this section, the time at which an individual enters into a transaction at an undervalue or gives an unfair preference is a relevant time if the transaction is entered into or the preference given —
in the case of a transaction at an undervalue —
where the bankruptcy application on which the individual is adjudged bankrupt is based on a presumption mentioned in section 312(d), within the period commencing 3 years before the day on which the relevant bankruptcy application is made and ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case, within the period of 3 years ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt;
in the case of an unfair preference which is not a transaction at an undervalue and which is given to a person who is an associate of the individual (otherwise than by reason only of being the individual’s employee) —
where the bankruptcy application on which the individual is adjudged bankrupt is based on a presumption mentioned in section 312(d), within the period commencing 2 years before the day on which the relevant bankruptcy application is made and ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case, within the period of 2 years ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case of an unfair preference which is not a transaction at an undervalue —
where the bankruptcy application on which the individual is adjudged bankrupt is based on a presumption mentioned in section 312(d), within the period commencing one year before the day on which the relevant bankruptcy application is made and ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt; or
in any other case, within the period of one year ending on the day of the making of the bankruptcy application on which the individual is adjudged bankrupt.
(2)
Where an individual enters into a transaction at an undervalue or gives an unfair preference at a time mentioned in subsection (1)(a), (b) or (c), that time is not a relevant time for the purposes of sections 361 and 362 unless the individual —
is insolvent at that time; or
becomes insolvent in consequence of the transaction or preference.
(3)
Where a transaction is entered into at an undervalue by an individual with a person who is an associate of the individual (otherwise than by reason only of being the individual’s employee), the requirements under subsection (2) are presumed to be satisfied unless the contrary is shown.
(4)
For the purposes of subsection (2), an individual is insolvent if —
the individual is unable to pay his or her debts as they fall due; or
the value of the individual’s assets is less than the amount of his or her liabilities, taking into account his or her contingent and prospective liabilities.
(5)
Where any of the periods mentioned in subsection (6) in respect of an individual coincides with any period mentioned in subsection (1)(a), (b) or (c) in respect of the individual, the time at which a transaction at an undervalue is entered into or an unfair preference is given by that individual is a relevant time if that transaction is entered into or that preference is given during the period, immediately preceding that period mentioned in subsection (1)(a), (b) or (c) (as the case may be) that is equal to the aggregate of all such periods mentioned in subsection (6) coinciding with the period mentioned in subsection (1)(a), (b) or (c), as the case may be.
(6)
The periods mentioned in subsection (5) are as follows:
the period during which an order under section 278 staying any bankruptcy application is in force;
the period during which an interim order on an application under section 276 is in force in relation to the individual.
(7)
In this section, “relevant bankruptcy application” means the bankruptcy application made against an individual that resulted in the debt repayment scheme mentioned in section 312(d) in respect of that individual.