![]() The essential elements therefore are valuable consideration, good faith and the absence of notice whether actual or constructive. The net issue would appear to be that if the settlor was made a bankrupt within two years of the date of the settlement and the Official Assignee in bankruptcy availed of section 59(1)(a) in order to set aside the voluntary conveyance by the settlor, would this have the effect of depriving a purchaser of a good title to the property? Secondly, if the setting aside of the settlement would not prevent a purchaser getting a good title because he is a bona fide purchaser for value without notice, what criteria must the purchaser satisfy in order to come within the terms of the definition? The courts have always accepted that in this context ‘void’ means ‘voidable’ and that anyone who claims under a settlement who is a purchaser for valuable consideration without notice has a good title which indeed can be forced on a purchaser (re: Carter and Kenderdines Contract 1 CH776). It has, however, long been accepted that the use of the word ‘void’ in fact means ‘voidable’ and why the opportunity was not taken in the 1988 Act to clarify this is not entirely clear. ’.Īs stated, it was thought that the Bankruptcy Act, 1988 had changed the earlier Bankruptcy (Ireland) Amend-ment Act 1872 as amended. if the settlor is adjudicated bankrupt at any subsequent time within five years after the date of the settlement. The section says ‘void’ and further does not contain an express provision giving protection to purchaser for value without notice whereas there is such protection given under section 59(1)(b) ‘. ‘Any settlement of property, not being a settlement made before and in consideration of marriage or made in favour of a purchaser or encumbrancer in good faith and for valuable consideration shall:Ī) If the settlor is adjudicated bankrupt within two years after the date of the settlement be void as against the Official Assignee and. ![]() The present wording was arrived at because it was felt in the opinion of the Committee to be desirable in the light of section 59(1)(a) of the Bankruptcy Act, 1988 which states as follows: if the disposition was made within the past two years, an insurance bond equal to value of the property’ should be furnished. Accordingly, it should no longer be necessary to furnish a bond if the requirements below are fulfilled. The Conveyancing Committee has decided in the light of opinions received that requisition 15 be amended by the deletion of 15c for the reasons set out in this practice note. Requisition 15 of the 1996 edition of Requisitions on title bears the above heading.
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