If a debt incumbent on the estate created by a legal transaction of the insolvency administrator cannot be fully satisfied from the insolvency estate, the administrator is liable to the preferential creditor for damages. This does not apply if the administrator, in creating such debt, could not be aware of the probable insufficiency of the insolvency estate for performance.
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Part 2 · Opening of insolvency proceedings. Recognised assets and parties to proceedings › Division 3 · Insolvency administrator. Bodies representing creditors › Section 61
Non-performance of debts incumbent on estate
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