Cap. 6:07
!r-.:SOLVE:-JCY
No. 7/2018
Provided that(i) a notarial bond over mm able property registered prior to the date of
the application of the Farmers' Stop-order Act !Chapter 18: 11 j, to
the class of crop concerned, shall rank prior to such statutory charges,
unless the holder of such bond has registered \\ ith the Registrar of
Farmers' Stop-orders and the Registrar of Deeds a waiver of such
priority. Upon registration any such waiver shall be irrevocable and
shall apply in respect of all statutory charges relating to all crops of
the in sol vent;
(ii)
if the trustee sells any land with standing crops thereon forming part
of the estate of the insolvent in respect of which there are claims
under statutory charges, the trustee and the purchaser shall agree
upon a figure to represent the value of such crops;
(b)
no payments made out of the free residue in terms of subsections (I) to
(II) shall be made out of that portion of the free residue which constitutes
the proceeds of any crop, unless the remainder of the free residue is
insufficient;
(c)
any claims under statutory charges relating to a crop shall for the purposes
of section 117 rcosts to which securities are subject J be deemed to be
secured claims, and that section shall apply with the necessary changes,
accordingly;
(d)
in this subsection "statutory charges" means prescribed costs, addressee's
fees, registered stop-orders and special stop-orders as defined in the
Farmers' Stop-order Act [Chapter 18: I 1 j, ranking in order of preference
between themselves as provided in that Act, and the terms "crop" and
"proceeds" have the meanings respectively given to them by that Act.
( 15) In the seventh place the balance of the free residue must, subject to any
maximum amount in terms of a bond, be applied to pay the proved claims of creditors
who are holders of a general bond over movables, registered in the deeds registry, in
their order of preference \Vith simple interest from the date of liquidation to the date
of payment at the rate of interest prescribed under the Prescribed Rate of Interest Act
[Chapter 8: 10], or a higher rate of interest by virtue of a lawful stipulation agreed upon
in writing.
( 16) In the eighth place any balance of the free residue must be applied to pay
the concurrent claims of creditors proved against the estate, in proportion to the amount
of each claim.
( 17)When the concurrent claims have been paid in full, any balance of the
free residue must be applied to pay simple interest on such claims from the date of
liquidation to the date of payment, in proportion to the amount of each such claim.
( 18) The interest referred to in subsection (15) must be calculated at the rate
of interest prescribed in terms of the Prescribed Rate of Interest Act [Chapter 8:10],
unless the amount of the claim bears interest at a higher rate of interest by virtue of a
lawful stipulation agreed upon in writing.
( 19) An employee of the debtor is entitled to payment in terms of subsection
(2)(a) even though he or she has not proved a claim against the estate in respect thereof,
but the liquidator may require the employee to submit an affidavit indicating the amount
due to him or her.
90
Costs incurred in respect of legal services and forensic investigation
(I) Subject to subsection (2)(a)
costs incurred to engage the services of legal practitioner to perform legal
265
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