The maxim that no-one can transfer what he does not have applies to this situation and if the junior creditor is not entitled to the debt, or the debt has been eliminated, then there is nothing that he can agree to secure, establish a trust over or make any other payment in relation to the debt. This situation would arise, for instance, if there were a set-off arrangement between the debtor and the junior creditor so that the debt of the debtor to the junior creditor was reduced to zero or if for some
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