Moneylenders Act, 1933

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Provisions as to bankruptcy proceedings for moneylenders loans.

16.—(1) Where a debt due to a moneylender in respect of a loan made by him after the commencement of this Act includes interest, that interest shall, for the purposes of the provisions of the Bankruptcy Acts relating to the presentation of a bankruptcy petition, voting at meetings, compositions and schemes of arrangement, and dividend, be calculated at a rate not exceeding five per cent, per annum, but nothing in the foregoing provision shall prejudice the right of the creditor to receive out of the estate, after all the debts proved in the estate have been paid in full, any higher rate of interest to which he may be entitled.

(2) No proof or admission of a debt due to a moneylender in respect of a loan made by him shall be admitted for any of the purposes of the Bankruptcy Acts unless there is lodged in Court by the moneylender a statement showing in detail—

(a) the amount of the sums actually lent to the debtor and the dates on which they were lent, and the amount of every payment already received by the moneylender in respect of the loan and the date on which every such payment was made; and

(b) the amount of the balance which remains unpaid distinguishing the amount of the principal from the amount of interest included therein, the appropriation between principal and interest being made in accordance with the provisions of this Act where the interest is not expressed by the contract for the loan in terms of a rate; and

(c) where the amount of interest included in the unpaid balance represents a rate per cent. per annum exceeding five per cent, the amount of interest which would be so included if it were calculated at the rate of five per cent, per annum.

(3) Rules of court may provide for carrying into effect the objects of this section.