Revised Laws of Saint Lucia (2021)

467.   Liabilities and rights of certain fraudulently preferred persons

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    (1)   Where, in the case of a company wound up in Saint Lucia, anything made or done after the commencement of this Act is void under section 466 as a fraudulent preference of a person interested in property mortgaged or charged to secure the company's debt, then (without prejudice to any rights or liabilities arising apart from this provision) the person preferred is subject to the same liabilities, and has the same rights, as if he or she had undertaken to be personally liable as surety for the debt to the extent of the charge on the property or the value of his or her interest, whichever is the less.

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    (2)   The value of the interest of a person referred to in subsection (1) shall be determined as at the date of the transaction constituting the fraudulent preference, and shall be determined as if the interest were free of all incumbrances other than those to which the charge for the company's debt was then subject.

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    (3)   On any application made to the court with respect to any payment on the ground that the payment was a fraudulent preference of a surety or guarantor, the court shall have jurisdiction to determine any questions with respect to whom the payment was made and the surety or guarantor and to grant relief in respect thereof, although it is not necessary so to do for the purposes of the winding-up, and for that purpose may give leave to bring in the surety or guarantor as a third party as in the case of an action for the recovery of the sum paid.

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    (4)   Subsection (3) applies, with the necessary modifications, in relation to transactions other than the payment of money as it applies in relation to payments.