32 bankrupt, he shall lose his right to a certificate, &c. Bankrupt, if arrested, may be discharged on an habeas corpus.. Persons whose debts are due at a future day may prove them. Obligees of certain bonds, and the assured in a policy of insurance may claim under the commission, &c. Proceedings on habeas corpus, brought by a person com mitted by the commissioners. SIXTH CONGRESS. SESS. I. CH. 19. 1800. tious or false debt, or demand, with intent to defraud the real creditors of such bankrupt, and the bankrupt shall refuse to make discovery thereof, and suffer the fair creditors to be imposed upon, he shall lose all title to the allowance upon the amount of his effects, and to a certificate of discharge as aforesaid, nor shall he be entitled to the said allowance or certificate, if he has lost, at any one time fifty dollars, or in the whole three hundred dollars, after the passing of this act, and within twelve months before he became a bankrupt, by any manner of gaming or wagering whatever. SEC. 38. And be it further enacted, That if any bankrupt, who shall have obtained his certificate, shall be taken in execution or detained in prison, on account of any debts owing before he became a bankrupt, by reason that judgment was obtained before such certificate was allowed, it shall be lawful for any of the judges of the court wherein judgment was so obtained, or for any court, judge, or justice, within the district in which such bankrupt shall be detained, having powers to award or allow the writ of habeas corpus, on such bankrupt producing his certificate so as aforesaid allowed, to order any sheriff or gaoler who shall have such bankrupt in custody, to discharge such bankrupt without fee or charge, first giving reasonable notice to the plaintiff, or his attorney, of the motion for such discharge. SEC. 39. And be it further enacted, That every person who shall have bona fide given credit to or taken securities, payable at future days, from persons who are or shall become bankrupts, not due at the time of such persons becoming bankrupt, shall be admitted to prove their debts and contracts, as if they were payable presently, and shall have a dividend in proportion to the other creditors, discounting, where no interest is payable, at the rate of so inuch per centum per annum, as is equal to the lawful interest of the state where the debt was payable; and the obligee of any bottomry or respondentia bond, and the assured in any policy of insurance, shall be admitted to claim, and after the contingency or loss, to prove the debt thereon, in like manner as if the same had happened before issuing the commission; and the bankrupt shall be discharged from such securities, as if such money had been due and payable before the time of his or her becoming bankrupt; and such creditors may petition for a commission, or join in petitioning. SEC. 40. And be it further enacted, That in case any person, committed by the commissioners' warrant, shall obtain a habeas corpus, in order to be discharged, and there shall appear any insufficiency in the form of the warrant, it shall be lawful for the court or judge before whom such party shall be brought by habeas corpus, by rule or warrant, to commit such persons to the same prison, there to remain until he shall conform as aforesaid, unless it shall be made to appear that he had fully answered all lawful questions put to him by the commissioners; or in case such person was committed for not signing his examination, unless it shall appear that the party had good reason for refusing to sign the same, or that the commissioners had exceeded their authority in making Penalty on the such commitment; and in case the gaoler to whom such person shall be gaoler suffering committed, shall wilfully or negligently suffer such person to escape, or such person to go at large. go without the doors or walls of the prison, such gaoler shall, for such offence, being convicted thereof, forfeit a sum not exceeding three thousand dollars for the use of the creditors. Prisoner to be produced by the gaoler on de. mand of a cre. ditor. SEC. 41. And be it further enacted, That the gaoler shall, upon the request of any creditor, having proved his debt, and showing a certificate thereof, under the hands of the commissioners, which the commissioners shall give without fee or reward, produce the person so committed; and in case such gaoler shall refuse to show such person to such creditor, requesting the same, such person shall be considered as having escaped, and the gaoler or sheriff so refusing, shall be liable as for a wil ful escape. SIXTH CONGRESS. SESS. I. CH. 19. 1800. 33 Offsets to be SEC. 42. And be it further enacted, That where it shall appear to the said commissioners that there hath been mutual credit given by the bank- allowed. rupt, and any other person, or mutual debts between them at any time before such person became bankrupt, the assignee or assignees of the -estate shall state the account between them, and one debt may be set off against the other, and what shall appear to be due on either side on the balance of such account after such set off, and no more, shall be claimed or paid on either side respectively. Assignees may with consent of the commissioners, &c. agree to a reference or SEC. 43. And be it further enacted, That it shall and may be lawful to and for the assignee or assignees of any bankrupt's estate and effects, under the direction of the commissioners, and by and with the consent of the major part in value of such of the said bankrupt's creditors, as shall have duly proved their debts under the commission, and shall be compromise. present at any meeting of the said creditors, to be held in pursuance of due and public notice for that purpose given, to submit any difference or dispute for, on account of, or by reason or means of, any. matter, cause, or thing whatsoever, relating to such bankrupt, or to his or her estate or effects, to the final end and determination of arbitrators to be chosen by the said commissioners, and the major part in value of such creditors as shall be present at such meeting as aforesaid, and the party or parties with whom they shall have such difference or dispute, and to perform the award of such arbitrators, or otherwise to compound and agree the matter in difference and dispute as aforesaid, in such manner as the said assignee or assignees under the direction and with the consent aforesaid, shall think fit and can agree; and the same shall be binding on the several creditors of the said bankrupt, and the said assignee or assignees are hereby indemnified for what they shall fairly do, according to the directions aforesaid. Sec. 44. And be it further enacted, That the assignees shall be, and hereby are vested with full power to dispose of all the bankrupt's estate, real and personal, at public auction or vendue, without being subject to any tax, duty, imposition, or restriction, any law to the contrary not withstanding. Sec. 45. And be it further enacted, That if after any commission of bankruptcy, sued forth, the bankrupt happen to die before the commissioners shall have distributed the effects, or any part thereof, the commissioners shall, nevertheless, proceed to execute the commission, as fully as they might have done if the party were living. Sec. 46. And be it further enacted, That where any commission of bankruptcy shall be delivered to the commissioners, therein named, to be executed, it shall and may be lawful for them before they take the oath or affirmation of qualification, to demand and take from the creditor or creditors prosecuting such commission, a bond with one good security, if required, in the penalty of one thousand dollars, conditioned for the payment of the costs, charges, and expenses, which shall arise and accrue upon the prosecution of the said commission: Provided always, that the expenses, so as aforesaid to be secured and paid by the petitioning creditor or creditors, shall be repaid to him or them by the commissioners or assignees, out of the first monies arising from the bankrupt's estate or effects, if so much be received therefrom. SEC. 47. And be it further enacted, That the district judges, in each district respectively, shall fix a rate of allowance to be made to the commissioners of bankruptcy, as compensation of services to be rendered under the commission, and it shall be lawful for any creditor, by petition to the district judge, to except to any charge contained in the account of the commissioners: and the said judge, after hearing the commissioners, may in a summary way decide upon the validity of such exception. SEC. 48. And be it further enacted, That all penalties given by this Bankrupt's estate may be dis lic auction, posed of at pubwithout paying duty, &c. What is to be done if the bankrupt die, pending the proceedings. Commissioners may demand security for the expenses of the commission. District judge to fix the comcommissioners. pensation to the 34 recovered and appropriated. Penalties how act for the benefit of the creditors, shall be recovered by the assignce or assignees by action of debt, and the money so recovered, the charges of suit being deducted, shall be distributed towards payment of the creditors. SEC. 49. And be it further enacted, That if any action shall be brought against any commissioner, or assignee, or other person, having authority under the commission, for any thing done or performed by this act and the special matter in evidence; and in case of a nonsuit, force of this act, the defendant may plead the general issue, and give discontinuance, or verdict or judgment for him, he shall recover double General issue and double costs provided for defendants der the commiswho acted un sion. Property com rupt, before he obtains a certificate, to be costs. Sec. 50. And be it further enacted, That if any estate real or per ing to the bank- sonal shall descend, revert to, or become vested in any person, after he or she shall be declared a bankrupt, and before he or she shall obtain a certificate, signed by the judge as aforesaid, all such estate shall, by virtue of this act, be vested in the said commissioners, and shall be by them assigned and conveyed to the assignee or assignees in fee simple, or otherwise, in like manner as above directed, with the estate of the said bankrupt, at the time of the bankruptcy, and the proceeds thereof shall be divided among the creditors. vested in the commissioners. Proceedings of the commis. filed in the of fice of the clerk of the district, sioners to be &c. Creditors may minations of the the allowance of the certificate. shall, once in every year, carefully file, in the clerk's office of the SEC. 51. And be it further enacted, That the said commissioners district court, all the proceedings had in every case before them, and which shall have been finished, including the commissions, examinations, dividends, entries, and other determinations of the said commissioners, in which office, the final certificate of the said bankrupt may also be recorded; all which proceedings shall remain of record in the said office, and certified copies thereof shall be admitted as evidence in all courts, in like manner as the copies of the proceedings of the said district court are admitted in other cases. SEC. 52. And be it further enacted, That it shall and may be lawful attend the exa- for any creditor of such bankrupt, to attend all or any of the examinabankrupt and tions of said bankrupt, and the allowance of the final certificate, if he shall think proper, and then and there to propose interrogatories, to be put by the judge or commissioners to the said bankrupt and others, and also to produce and examine witnesses and documents before such judge or commissioners, relative to the subject matter before them. And in case either the bankrupt or creditor shall think him or herself aggrieved by the determination of the said judge or commissioners, relative to Trial by jury any material fact, in the commencement or progress of the said proceed. may be had in relation to certain facts. Allowance to the bankrupt, pending the proceedings. Creditors may direct where be inay and a ings, or in the allowance of the certificate aforesaid, it shall and SEC. 53. And be it further enacted, That the commissioners before the appointment of assignees, and the assignees after such appointment, may, from time to time, make such allowance out of the bankrupt's estate until he shall have obtained his final discharge, as in their opinion may be requisite for the necessary support of the said bankrupt and his family. SEC. 54. And be it further enacted, That it shall be lawful for the major part in value of the creditors, before they proceed to the choice SIXTH CONGRESS. SESS. I. CH. 19. 1800. 35 of assignees, to direct in what manner, with whom, and where the the money shall monies arising by, and to be received from time to time out of the bank- be deposited. rupt's estate, shall be lodged, until the same shall be divided among the creditors, as herein provided; to which direction every such assignee and assignees shall conform as often as three hundred dollars shall be received. SEC. 55. And be it further enacted, That every matter and thing by this act, required to be done by the commissioners of any bankrupt, shall be valid to all intents and purposes, if performed by a majority of them. SEC. 56. And be it further enacted, That in all cases where the assignees shall prosecute any debtor of the bankrupt for any debt, duty or demand, the commission, or a certified copy thereof, and the assignment of the commissioners of the bankrupt's estate, shall be conclusive evidence of the issuing the commission, and of the person named therein, being a trader and bankrupt, at the time mentioned therein. SEC. 57. And be it further enacted, That every person obtaining a discharge from his debts, by certificate as aforesaid, granted under a commission of bankruptcy, shall not, on any future commission, be entitled to any other certificate than a discharge of his person only; unless the nett proceeds of the estate and effects of such person so becoming bankrupt a second time, shall be sufficient to pay seventy-five per cent. to his or her creditors on the amount of their debts respectively. Majority of the commis. sioners may act. The commis sion shall be evidence of the party being a bankrupt, &c. Effect of a dis. charge under a second commis. sion. Claims of cre.. ditors may be SEC. 58. And be it further enacted, That any creditor of a person, against whom a commission of bankruptcy shall have been sued forth, tried by jury. and who shall lay his claim before the commissioners appointed in pursuance of this act, may at the same time declare his unwillingness to subunit the same to the judgment of the said commissioners, and his wish that a jury may be impanneled to decide thereon: And in like manner the assignee or assignees of such bankrupt may object to the consideration of any particular claim by the commissioners, and require that the same should be referred to a jury. In either case, such objection and request shall be entered on the books of the commissioners, and thereupon an issue shall be made up between the parties, and a jury shall be impanneled, as in other cases, to try the same in the circuit court for the district in which such bankrupt has usually resided. The verdict of such jury shall be subject to the control of the court, as in suits originally instituted in the said court, and when rendered, if not set aside by the court, shall be certified to the commissioners, and shall ascertain the amount of any such claim, and such creditor or creditors shall be considered in all respects as having proved their debts under the commission. SEC. 59. And be it further enacted, That the lands and effects of any person becoming bankrupt may be sold on such credit, and on such security, as a major part in value of the creditors may direct: Provided, nothing herein contained shall be allowed so to operate, as to retard the granting the bankrupt's certificate. or SEC. 60. And be it further enacted, That if any person becoming bankrupt, shall be in prison, it shall be lawful for any creditor or creditors, at whose suit he or she shall be in execution, to discharge him her from custody, or if such creditor or creditors shall refuse to do so, the prisoner may petition the commissioners, to liberate him or her, and thereupon, if, in the opinion of the commissioners, the conduct of such bankrupt shall have been fair, so as to entitle him or her in their opinion, to a certificate, when by law such certificate might be given, it shall be lawful for them to direct the discharge of such prisoner, and to enter the same in their books, which being notified to the keeper of the gaol in which such prisoner may be confined, shall be a sufficient autho rity for his or her discharge: Provided, that in either case, such dis Bankrupt's estate may be sold on credit. Creditors or commissioners may release the prison, and the bankrupt from former may is. ue a new exe. does not obtain a discharge. cution if he 36 How far this act shall affect the insolvent laws of the states. Saving of the rights of the U. States and of each state as to their debts. Saving of existing liens. Limitation of this act. SIXTH CONGRESS. SESS. I. CH. 21, 22. 1800. charge shall be no bar to another execution, if a certificate shall be refused to such bankrupt: And provided also, that it shall be no bar to a subsequent imprisonment of such bankrupt by order of the commissioners, in conformity with the provisions of this act. SEC. 61. And be it further enacted, That this act shall not repeal or annul, or be construed to repeal or annul the laws of any state now in force, or which may be hereafter enacted, for the relief of insolvent debtors, except so far as the same may respect persons, who are, or may be clearly within the purview of this act, and whose debts shall amount in the cases specified in the second section thereof to the suns therein mentioned. And if any person within the purview of this act, shall be imprisoned for the space of three months, for any debt, or upon any contract, unless the creditors of such prisoner shall proceed to prosecute a commission of bankruptcy against him or her, agreeably to the provi sions of this act, such debtor may and shall be entitled to relief, under any such laws for the relief of insolvent debtors, this act notwithstanding. SEC. 62. And be it further enacted, That nothing contained in this law shall, in any manner, effect the right of preference to prior satisfaction of debts due to the United States as secured or provided by any law heretofore passed, nor shall be construed to lessen or impair any right to, or security for, money due to the United States or to any of them. SEC. 63. And be it further enacted, That nothing contained in this act, shall be taken, or construed to invalidate, or impair any lien existing at the date of this act, upon the lands or chattels of any person who may have become a bankrupt. SEC. 64. And be it further enacted, That this act shall continue in force during the term of five years, and from thence to the end of the next session of Congress thereafter, and no longer: Provided, that the expiration of this act shall not prevent the complete execution of any commission which may have been previously thereto issued. APPROVED, April 4, 1800. |