Co-operatives Act, 2005 (Act No. 14 of 2005)RegulationsCo-operatives Administrative Regulations, 2016Chapter 2 : Winding Up and Judicial Management of Co-operativesPart A : Winding-Up of Co-operativesLiquidation, trading, distribution and contribution accounts and application of proceeds104. Certain mortgage bonds not to confer preference |
| (1) | A mortgage bond, other than a kustingbrief, registered in any office for the registration of deeds against immovable property of a co-operative for the purpose of securing payment of— |
| (a) | a debt not previously secured which arose more than 60 days prior to the lodging of the relevant bond for registration in such office; or |
| (b) | a debt incurred innovation of or substitution for a debt referred to in paragraph (a); |
will not confer any preferences with regard to such property or the proceeds thereof if the cooperative is wound up with 180 days after the lodging of such bond.
| (2) | A general mortgage bond, including a general clause in a mortgage bond hypothecating particular immovable property, will not confer any preference with regard to the property of a co-operative being wound up or the proceeds thereof. |