Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 43B

Vesting in trustee of certain items of excess value

(1) Where-

   (a)  property is excluded by virtue of section 43(2) from the bankrupt's
        estate; and

   (b)  it appears to the trustee that the realisable value of the whole or
        any part of that property exceeds the cost of a reasonable replacement
        for that property or that part of it, the trustee may by notice in
        writing claim that property or, as the case may be, that part of it
        for the bankrupt's estate.

(2) Upon the service on the bankrupt of a notice under this section, the
property to which the notice relates vests in the trustee as part of the
bankrupt's estate; and, except against a purchaser in good faith, for value
and without notice of the bankruptcy, the trustee's title to that property has
relation back to the commencement of the bankruptcy.

(3) The trustee shall apply funds comprised in the estate to the purchase by
or on behalf of the bankrupt of a reasonable replacement for any property
vested in the trustee under this section; and the duty imposed by this
subsection has priority over the obligation of the trustee to distribute the
estate.

(4) For the purposes of this section, property is a reasonable replacement for
other property if it is reasonably adequate for meeting the needs met by the
other property. (Added 76 of 1996 s. 31)