2(1)Subject to the provisions of section 3, every gift, conveyance, assignment or transfer, delivery over or payment of goods, chattels or effects, or of bills, bonds, notes or securities, or of shares, dividends, premiums or bonus in any bank, company or corporation, or of any other property, real or personal, made by a person at a time when that person is in insolvent circumstances, or is unable to pay that person’s debts in full, or knows that that person is on the eve of insolvency, with intent to defeat, delay or prejudice that person’s creditors, or any one or more of them, is void, as against a creditor injured, delayed or prejudiced.

2(2)Subject to the provisions of section 3, every gift, conveyance, assignment or transfer, delivery over or payment of goods, chattels or effects, or of bills, bonds, notes or securities, or of shares, dividends, premiums or bonus in any bank, company or corporation, or of any other property, real or personal, made by a person at a time when that person is in insolvent circumstances, or is unable to pay that person’s debts in full, or knows that that person is on the eve of insolvency, to or for a creditor with intent to give that creditor an unjust preference over the other creditors, or over any of them, is void, as against a creditor injured, delayed, prejudiced or postponed.

2(3)Subject to the provisions of section 3, if a transaction with or for a creditor has the effect of giving that creditor a preference over the other creditors of the debtor, or over any of them, it shall, with respect to any suit or proceeding that, within 60 days after the transaction, is brought to impeach or set aside the transaction, be presumed to have been made with that intent, and to be an unjust preference within the meaning of this Act, whether it is made voluntarily or under pressure.

2(4)If a gift, conveyance, assignment or transfer, delivery over or payment of goods, chattels or effects, or of bills, bonds, notes or securities, or of shares, dividends, premiums or bonus in any bank, company or corporation, or of any other property, real or personal, is made to or for any surety or endorser of any promissory note or bill of exchange, who would on payment by that person of the debt, promissory note, or bill of exchange, in respect of which the suretyship was entered into or the endorsement given, become a creditor of the person giving the preference within the meaning of the previous subsections, the transaction is void in cases where it would be void if given to or for a creditor.

3(1)Nothing in section 2 applies to any assignment made under the Bankruptcy and Insolvency Act (Canada), nor to any sale or payment made in good faith in the ordinary course of trade or calling to innocent purchasers or parties, nor to any payment of money to a creditor, nor to any genuine gift, conveyance, assignment, transfer, or delivery over of any goods, securities or property of any kind as above mentioned, that is made in consideration of any present actual payment in money made in good faith, or by way of security for any present actual advance of money made in good faith, or in consideration of any present actual sale and delivery of goods or other property made in good faith, if the money paid, or the goods or other property sold or delivered, bears a fair and reasonable relative value to the consideration for it.

3(2)In case of a valid sale of goods, securities or property, and payment or transfer of the consideration, or part of it, by the purchaser to a creditor of the vendor under circumstances that would render void such a payment or transfer by the debtor personally and directly, the payment or transfer, even though valid as respects the purchaser, is void as respects the creditor to whom it is made.

3(3)If a payment has been made that is void under this Act, and any valuable security was given up in consideration of the payment, the creditor is entitled to have the security restored or its value made good to the creditor before or as a condition of the return of the payment.

3(4)Nothing in this Act affects the Wage-Earners Protection Act, or prevents a debtor from providing for payment of wages due by the debtor in accordance with provisions of that Act; nor does anything in this Act affect any payment of money to a creditor if that creditor, by reason of the payment, has lost or been deprived of, or has, in good faith, given up any valuable security that that creditor held for the payment of the debt so paid, unless the valuable security is restored to the creditor, nor the substitution in good faith of one security for another security for the same debt, so far as the debtor’s estate is not by the substitution lessened in value to the other creditors; nor does anything in this Act invalidate a security given to a creditor for a pre-existing debt, if on account of the giving of the security, an advance of money is made to the debtor by the creditor in the bona fide belief that the advance will enable the debtor to continue the debtor’s trade or business and pay the debtor’s debts in full.