Meetings of Creditors; Proof of Claims

Section 50

Arrear interest. Debt due after sequestration

(1) When a debt bearing interest became due before the sequestration of the debtor’s estate, the creditor to whom that debt is owing may include in his claim against the debtor’s estate in respect of that debt any interest thereon, which is in arrear, to the date of the sequestration.

(2) If a person, before the sequestration of his estate, incurred a debt which is payable upon a date (hereinafter referred to as the due date) after the date of the sequestration, the creditor, towards whom the debt was incurred, may claim from the insolvent estate the full amount of that debt as if it were payable on the date of sequestration: Provided that if the debt bears no interest and a distribution account in the estate in question is confirmed by the Master in terms of section 112 before the due date, an amount shall be paid on that claim equal to the amount which would have been paid thereon under the distribution account if the debt had been payable on the date of sequestration, less eight per cent of that amount per annum, reckoned from the date of sequestration to the due date.

[Sub-s. (2) amended by s. 5 of Act No. 101 of 1983.]