MRL3701 - Study Unit 7 - Vesting of the Assets of the Insolvent Questions with Correct Answers

FUNCTION OF THE TRUSTEE Correct Answer 1. Collect the assets in the estate 2. realize them 3. distribute proceeds amongst creditors in the order of preference laid down by the Act. VESTING OCCURS Correct Answer even in respect of property which has been sold in execution if the debtor's estate is sequestrated before delivery or transfer of the property concerned. IF PROVISION TRUSTEE IS APPOINTED Correct Answer Estate vests in him before vesting in the trustee THE ESTATE REMAINS VESTED IN THE TRUSTEE UNTIL Correct Answer 1. the discharge of the sequestration order by the court 2. the acceptance by creditors of an offer of composition made by the insolvent which provides that the insolvent's property will be restore to him 3. an order for the insolvent's rehabilitation is granted in terms of s124(3) IF TRUSTEE VACATES HIS OFFICE, IS REMOVED FROM OFFICE OR DIES Correct Answer estate revests in the Master until a new trustee is appointed. If there is a co-trustee the estate remains vested in him. PROPERTY WHICH FALLS INTO ESTATE Correct Answer The insolvent estate comprises the following: 1. all property of the insolvent at the date of sequestration, including property (or proceeds thereof) in the hands of a sheriff under a writ of attachment; and 2. all property which the insolvent acquires or which accrues to him during the sequestration, including any property that the insolvent recovers for the benefit of the estate where the trustee fails to take the necessary action. PROPERTY Correct Answer movable or immovable property wherever situated in the Republic and includes contingent interests in property, other than the contingent interest of a fideicommissary ehir or legatee IMMOVABLE PROPERTY Correct Answer land and every right tor interest in land or minerals which is registrable in a deeds registry within the Republic. MOVABLE PROPERTY Correct Answer every kind of property and every right or interest which is not immovable property (liquor license)