Insolvency Act, 1936 (Act No. 24 of 1936)85. Exclusion or limitation of preference under legal hypothec |
| (1) | A tacit or legal hypothec (other than a landlord's legal hypothec or the hypothec mentioned in subsection (1) of section eighty-four) shall not confer any preferent right against an insolvent estate. |
| (2) | A landlord's legal hypothec shall confer a preference with regard to any article subject to that hypothec for any rent calculated in respect of any period immediately prior to and up to the date of sequestration but not exceeding— |
| (a) | three months, if the rent is payable monthly or at shorter intervals than one month; |
| (b) | six months, if the rent is payable at intervals exceeding one month but not exceeding three months; |
| (c) | nine months, if the rent is payable at intervals exceeding three months but not exceeding six months; |
| (d) | fifteen months in any other case. |