s.109Voluntary expenditure of moneys on the property of another to be deemed a settlement if order in bankruptcy takes effect within two years against the person so expending the same
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Section 109Part 17 — Benefit of Transactions Affecting the Debtor and the Debtor’s Property

Voluntary expenditure of moneys on the property of another to be deemed a settlement if order in bankruptcy takes effect within two years against the person so expending the same

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The voluntary expenditure of any moneys by any person in building or making permanent improvements on the property of another shall be deemed to be a settlement of such moneys on such other person within the meaning of section 107, and if an order in bankruptcy, as mentioned in section 107, takes effect against the person making such expenditure within two years from the date of such expenditure the Trustee shall be entitled to recover, from the owner of the property benefited by such expenditure, an amount equal to the increase in the value of such property brought about by such expenditure, and shall have a lien on such property for such amount, and on the proceeds thereof if the same have been sold — Provided always that such lien shall not prevail against the bona fide purchaser for valuable consideration who, at the time of the purchase, either had no notice of such expenditure, or, if that purchaser had such notice, had no notice of an act of bankruptcy on the part of the person making the same, available for adjudication against that purchaser.

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