SECTION 332 — Culpable Bankruptcy

(1) Any individual trader in the position of cessation of payment who: a) makes, without receiving securities in exchange, commitments deemed too heavy in relation to his situation when he made them ; b) where, with intent to delay the establishment of cessation of payments, makes purchases for resale at lower prices or where, with same intent, uses ruinous means to obtain funds ; c) where, without valid reason, fails to declare his situation of cessation of payments at the Registry of the competent court within a period of 30 (thirty) days ; d) keeps incomplete or improper accounts or does not keep any accounts in conformity with generally accepted accounting rules and practices, with regard to the size of the company, shall be punished with imprisonment for from 1 (one) month to 2 (two) years. 2) Any individual trader who, having been declared 3 (three) times in a situation of cessation of payments within a period of 5 (five) years, and where such proceedings were closed for asset inadequacy, shall also be convicted for culpable bankruptcy and punished with the penalties provided for in Subsection (1) above.