Pensions etc., to cease on bankruptcy

(1) If any teacher to whom a pension or other allowance has been granted under this Act is adjudicated bankrupt or is declared insolvent by judgment of any competent court, then such pension or allowance shall forthwith cease. (2) If any teacher is adjudicated bankrupt or declared insolvent as mentioned in subsection (1) of this section, either, (a) after retirement in circumstances in which he is eligible for pension or allowance under this Act but before the pension or allowance is granted; or (b) before such retirement, and he has not obtained his discharge from bankruptcy or insolvency at the date of retirement, then, in the former case any pension or allowance eventually granted to him shall cease as from the date of adjudication or declaration as the case may be and, in the latter case, the pension or allowance may be granted but shall cease forthwith and not become payable. (3) Where a pension or allowance ceases by virtue of this section, it shall be lawful for the Governor-General, from time to time during the remainder of such teacher’s life, or during such shorter period or periods, either continuous or discontinuous, as the Governor-General, shall think fit, to direct all or any part of the moneys to which such teacher would have been entitled by way of pension or allowance, had he not become bankrupt or insolvent, to be paid to, or applied for the maintenance or benefit of, all or any to the exclusion of the other or others of the following, that is to say, such teacher and any spouse, child or children of his, in such proportions and manner as the Governor- General, as the case may be, 16 thinks proper, and such moneys shall be paid or applied accordingly. (4) Moneys applied for the discharge of the debts of the teacher whose pension or allowance has so ceased shall, for the purposes of this section, be regarded as applied for his benefit. (5) When a teacher whose pension or allowance has so ceased obtains his discharge from bankruptcy or insolvency it shall be lawful for the Governor-General to direct that the pension or allowance shall be restored as from the date of such discharge or any later date, and the pension or allowance shall be restored accordingly.