Bankruptcy Ordinance

(1)
Subject to subsections (2) and (3), the time at which a debtor enters into a
                transaction at an undervalue or gives an unfair preference is a relevant time if the
                transaction is entered into or the unfair preference
given—
(a)
in the case of a transaction at an undervalue, at a time in the period of 5
                    years ending with the day of the presentation of the bankruptcy petition on
                    which the debtor is adjudged bankrupt;
(b)
in the case of an unfair preference which is not a transaction at an
                    undervalue and is given to a person who is an associate of the debtor (otherwise
                    than by reason only of being his employee), at a time in the period of 2 years
                    ending with that day; and
(c)
in any other case of an unfair preference which is not a transaction at an
                    undervalue, at a time in the period of 6 months ending with that day.
(2)
Where a debtor enters into a transaction at an undervalue or gives an unfair
                preference at a time mentioned in subsection
(1
)(
a)
, (b) or (c) (not
                being, in the case of a transaction at an undervalue, a time less than 2 years
                before the end of the period mentioned in subsection
(1
)(
a)
), that time
                is not a relevant time for the purposes of
sections 49
and
50
unless the
debtor—
(a)
is insolvent at that time; or
(b)
becomes insolvent in consequence of the transaction or
                    preference,
but the requirements of this subsection are presumed to be satisfied, unless
                the contrary is shown, in relation to any transaction at an undervalue which is
                entered into by a debtor with a person who is an associate of his (otherwise than by
                reason only of being his employee).
(3)
For the purposes of subsection (2), a debtor is insolvent
if—
(a)
he is unable to pay his debts as they fall due; or
(b)
the value of his assets is less than the amount of his liabilities, taking
                    into account his contingent and prospective liabilities.