Section 118Part 17 — Benefit of Transactions Affecting the Debtor and the Debtor’s Property
Protection of certain bona fide transactions with bankrupt before petition filed
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Subject to the provisions of this Act relating to the proceeds of the sale of goods which have been seized, and to the provisions of this Act and every other Law avoiding, on the ground of their being fraudulent, certain settlements conveyances, transfers, charges, payments, obligations and judicial proceedings, the following dealings and transactions relating to the property of the debtor, if they take place before the filing of the petition, shall be valid notwithstanding any prior act of bankruptcy committed by the debtor —
every payment by the debtor to any of the debtor’s creditors and every payment or delivery to the debtor;
every conveyance, sale or assignment for valuable consideration by and with the debtor; and
every execution and attachment against the debtor’s goods and chattels executed and levied by seizure and sale —
the person to, by or with whom such payment, delivery, conveyance, assignment, sale, contract, dealing or transaction was made, executed or entered into, or at whose suit or on whose account every such execution or attachment was issued, had not, at the time of such payment, delivery, conveyance, assignment, contract, dealing or transaction, or at the time of the executing or levying of such execution or attachment, or at the time of the making of any sale thereunder, notice of any act of bankruptcy committed by the debtor and available for adjudication against the debtor at the time of the filing of the petition.