Interest not to exceed 5 % in bankruptcy proceedings

(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 Act, 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 centum 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. CAP. 244. (2) Sub-section (1) of this section, shall in relation to such a debt as aforesaid, have effect, notwithstanding any other provisions relating to the payment of debts, including interests or any pecuniary consideration in lieu of interest contained in the Bankruptcy Act. (3) No proof 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 Act, unless the affidavit verifying the debt is accompanied by 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; (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 50 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 centum per annum exceeding five per centum, the amount of interest which would be so included if it were calculated at the rate of five per centum per annum. (4) General rules may be made under section 97 of the Bankruptcy Act, for the purpose of carrying into effect the objects of this section. CAP. 244.