Extending Unlawful Benefits

Extending Unlawful Benefits in Europe

Extending Unlawful Benefits to Creditors in Germany

Provisions relating to extending unlawful benefits to creditors in the German Criminal Code [1]: This criminal issue is covered by Chapter Twenty-four, under the heading “Offences in the State of Insolvency,” located in Section 283c Extending unlawful benefits to creditors, which reads: (1) Whosoever with knowledge of his own inability to pay grants a creditor a security or satisfaction to which he is not entitled at all or not in such a manner or at the time, and thereby intentionally or knowingly accords him preferential treatment over the other creditors shall be liable to imprisonment of not more than two years or a fine. (2) The attempt shall be punishable. (3) Section 283 (6) shall apply mutatis mutandis.

Extending Unlawful Benefits to Debtors in Germany

Provisions relating to extending unlawful benefits to debtors in the German Criminal Code [1]: This criminal issue is covered by Chapter Twenty-four, under the heading “Offences in the State of Insolvency,” located in Section 283d Extending unlawful benefits to debtors, which reads: (1) Whosoever with knowledge of anothers impending 1. inability to pay; or after the suspension of payments, in an insolvency proceeding or in a proceeding about the institution of insolvency proceedings of another, with his consent or on his behalf disposes of or hides, or, in a manner contrary to regular business standards, destroys, damages or renders unusable parts of the others assets, which in the case of institution of insolvency proceedings would belong to the available assets, 2. shall be liable to imprisonment of not more than five years or a fine. (2) The attempt shall be punishable. (3) In especially serious cases the penalty shall be imprisonment from six months to ten years. An especially serious case typically occurs if the offender 1. acts out of profit-seeking; or knowingly places many persons in danger of losing their assets that were entrusted to him, or in financial hardship. 2. (4) The offence shall only entail liability if the other person has suspended payments or if insolvency proceedings have been instituted in relation to his assets or the application to institute proceedings has been rejected due to lack of available assets.

Resources

Notes

  1. The content of the translated German penal code in relation to extending unlawful benefits to debtors is current as of 2010

Resources

Notes

  1. The content of the translated German penal code in relation to extending unlawful benefits to creditors is current as of 2010

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