(4) Subject to the provisions of section 6, if such a transaction with or for a creditor has the effect of giving that creditor a preference over the other creditors of the debtor or over any one or more of them, it shall, if the debtor within sixty days after the transaction makes an assignment for the benefit of his creditors be presumed prima facie to have been made with the intent mentioned in subsection 2, and to be an unjust preference within the meaning hereof, whether the same be made voluntarily or under pressure.

(5) The word "creditor" (c) in the fifth and sixth lines of subsection 2, in the second and third lines of subsection 3, and in the second and third lines of subsection 4, shall include any surety and the endorser of any promissory note or bill of exchange who would upon payment by him of the debt, promissory note or bill of exchange, in respect of which such suretyship was entered into or such endorsement was given become a creditor of the person giving the preference within the meaning of these subsections.

6.-(1) Nothing in the next preceding section shall apply to an assignment made to the sheriff of the county or district in which the debtor resides or carries on business or with the consent of a majority of his creditors having claims of $100 and upwards computed according to the provisions of section 25, to another assignee resident within Ontario, for the purpose of paying rateably and proportionately and without preference or priority all Statute of Elizabeth.

(c) In the fifth line of sub-s. 2, in the second line of sub-s. 3, and in the second line of sub-s. 4, as printed above.

the creditors of the debtor their just debts; nor to any bona fide sale or payment made in the ordinary course of trade or calling to an innocent purchaser or person; nor to any payment of money to a creditor, nor to any bona fide conveyance, assignment, transfer or delivery over of any goods or property of any kind, which is made in consideration of a present actual bona fide payment in money, or by way of security for a present actual bona fide advance of money, or which is made in consideration of a present actual bona fide sale or delivery of goods or other property where the money paid, or the goods or other property sold or delivered bear a fair and reasonable relative value to the consideration therefor.

(2) In the case of a valid sale of goods or other property, and payment or transfer of the consideration or part thereof by the purchaser to a creditor of the vendor, under circumstances which would render void such a payment or transfer by the debtor personally and directly, the payment or transfer, even though valid as respects the purchaser, shall be void as respects the creditor to whom the same is made.

(3) Every assignment for the general benefit of creditors, which is not void under section 5, but is not made to the sheriff, nor to any other person with the prescribed consent of creditors, shall be void as against a subsequent assignment which is in conformity with this Act, and shall be subject in other respects to the provisions thereof until and unless a subsequent assignment is executed in accordance therewith.

(4) Where a payment has been made which is void under this Act, and any valuable security was given up in consideration of the payment, the creditor shall be entitled to have the security restored, or its value made good to him before, or as a condition of, the return of the payment.

(5) Nothing herein shall

(a) Affect The Wages Act, or prevent a debtor providing for payment of wages due by him in accordance with the provisions of that Act,

(b) Affect any payment of money to a creditor, where such creditor by reason or on account of such payment, has lost or been deprived of, or has in good faith given up, any valid security which he held for the payment of the debt so paid, unless the security is restored or its value made good to the creditor,

(c) Apply to the substitution in good faith of one security for another security for the same debt so far as the debtor's estate is not thereby lessened in value to the other creditors, or

(d) Invalidate a security given to a creditor for a pre-existing debt where, by reason or on account of the giving of the security, an advance in money is made to the debtor by the creditor, in the bona fide belief that the advance will enable the debtor to continue his trade or business and to pay his debts in full.

The Fraudulent Conveyances Act, R.S.O. 1914, c. 105, contains the following provisions with regard to the conveyances in fraud of purchasers (d) :

7. Every conveyance of real property had or made or at any time hereafter to be had or made with intent to defraud and deceive such person as may have purchased or shall afterwards purchase such real property shall be deemed only as against that person and his assigns, and all persons lawfully claiming under him, or them, who have purchased or shall hereafter purchase for money or other good consideration the same real property or any part thereof to be null and void.

8. Section 7 shall not extend to or be construed to impeach, defeat, make null or void any conveyance of real property made upon or for good consideration and bona fide.

9.- (1) If any person makes a conveyance of real property with any clause, provision, article.or condition of revocation, determination or alteration at his will or pleasure, and after such conveyance bargains, sells, demises, grants, conveys or charges the same or any part thereof to any person for money or other good consideration paid or given, such first conveyance not being by him revoked, made void, or altered according to the power and authority so reserved or expressed therein, then such first conveyance as touching the real property so after bargained, sold, conveyed, demised or charged against the bargainees, vendees, lessees, grantees, their heirs, successors, and their assigns and against every person lawfully claiming under them, shall be null and void.

(2) No lawful mortgage made bona fide, and without fraud or covin, upon good consideration shall be impeached or impaired by force of this Act, but shall have the like force and effect as if this Act had not been passed.

10. Nothing in sections 7 to 9 shall extend to a conveyance which is executed in good faith and duly registered in the proper registry office (e) or land titles office (f) before the execution of the conveyance to, and before the creation of any binding contract for the conveyance to any subsequent purchaser from the same grantor of the same real property or any part thereof, nor shall the same merely by reason of the absence of a valuable consideration be null and void as against such purchaser or his heirs, executors, administrators or assigns or any person claiming by, from or under any of them .

(d) Ss. 7, 8 and 9 are derived from the English statute 27 Eliz. c. 4. Ss. 10 and 11 were added to 1868 by the Ontario statute 31 V. c. 9, ss. 1 and 2.

11. Nothing in the next preceding section shall have the effect of making valid any instrument which is for any reason other than or in addition to the absence of a valuable consideration void under sections 7 to 9 or otherwise; nor have the effect of making valid any instrument as against a purchaser who had, before the 28th day of February, 1868, entered into a binding contract for, or received his conveyance upon such purchase.

(e) See chapter 8, The Registry Act.

(f) See chapter 10, The Land Titles Acts.