Insolvency Act · 2022 Revised Edition · Part 7
212. Extortionate credit transactions
Official textFrom Attorney General's Chambers, unchanged
This section applies —
to section 208; and
Insolvency
where the company is, or has been, a party to a transaction for, or involving, the provision of credit to the company.
The Court may, on the application of the office holder, make an order with respect to the transaction if the transaction is or was extortionate and was entered into in the period of 3 years ending with the day on which the company entered judicial management or went into liquidation.
Court
“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
For the purposes of this section, a transaction is extortionate if, having regard to the risk accepted by the person providing the credit —
the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit; or
it otherwise grossly contravened ordinary principles of fair dealing, and it shall be presumed, unless the contrary is proved, that a transaction with respect to which an application is made under this section is or, as the case may be, was extortionate.
An order under this section with respect to any transaction may contain such one or more of the following as the Court thinks fit —
provision setting aside the whole or part of any obligation created by the transaction;
provision otherwise varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held;
provision requiring any person who is or was a party to the transaction to pay to the office holder any sums paid to that person, by virtue of the transaction, by the company;
provision requiring any person to surrender to the office holder any property held by him as security for the purposes of the transaction;
provision directing accounts to be taken between any persons.
Insolvency 170
Terms defined in s 3
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
property
Defined · s 3“property”, in relation to a company, includes money, goods, things in action and every description of property, whether real or personal, and whether in Brunei Darussalam or elsewhere, and also obligations and every description of interest whether present or future or vested or contingent arising out of, or incidental to, property.
security
Defined · s 3“security” means any mortgage, charge, lien or other security interests;