Registers may administer cer tain oaths. Commission ers may take proof of debts, subject, &c. 334 June 8, 1872. 1867, ch. 176, § 14. Vol. xiv. p. 523. Property not included in ex ceptions, exempt from assignment in any State to an amount not exceeding that exempt from levy, &c., by the laws of such State in force in 1871. 334 June 8, 1872. 1867, ch. 176, § 2. Vol. xiv. p. 518. The jurisdic tion of circuit courts in bank ruptcy may be exercised in any district in which of a circuit court SEC. 3. And be it further enacted, That registers in bankruptcy shall have power to administer oaths in all cases and in relation to all matters in which oaths may be administered by commissioners of the circuit courts of the United States, and such commissioners may take proof of debts in bankruptcy in all cases, subject to the revision of such proofs by the register and by the court according to the provisions of said act. APPROVED, July 27, 1868. FORTY-SECOND CONGRESS. SESS. II. Сн. 338–341. 1872. CHAP. CCCXXXIX.-An Act to amend an Act entitled "An Act to establish a Uniform System of Bankruptcy throughout the United States." Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first proviso in section fourteen of an act approved March second, eighteen hundred and sixtyseven, entitled "An act to establish a uniform system of bankruptcy throughout the United States," be amended by striking out the words "eighteen hundred and sixty-four," and inserting in lieu thereof "eighteen hundred and seventy-one." APPROVED, June 8, 1872. FORTY-SECOND CONGRESS. SESS. II. CH. 338-341. 1872. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the powers and jurisdiction granted to the several circuit courts of the United States, or any justice thereof, by section two of an act entitled "An act to establish a uniform system of bankruptcy throughout the United States," approved March second, eighteen hundred and sixty-seven, may be exercised in any district in which the powers or jurisdiction of a circuit court have been or may be conferred on the district court for such district, as if no such powers or jurisdiction had been conferred on such district court; if no such power it being the true intent and meaning of said act that the system of bankruptcy thereby established shall be uniform throughout the United States. the power, &c., has been, &c., conferred on the district court, as had been con ferred thereon. APPROVED, June 8, 1872. 436 FORTY-SECOND CONGRESS. SESS. III. CH. 132, 133, 135. 1873. CHAP. CXXXV. An Act to amend an Act entitled "An Act to establish a uniform System of Bankruptcy throughout the United States," approved March second, eighteen hundred and sixty-seven. Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That whenever a corporation created by the laws of any State, whose business is carried on wholly within the State creating the same, and also any insurance company so created, whether all its business shall be carried on in such State or not, has had proceedings duly commenced against such corporation or company before the courts of such State for the purpose of winding up the affairs of such corporation or company and dividing its assets ratably among its creditors and lawfully among those entitled thereto prior to proceedings having been commenced against such corporation or company under the bankrupt laws of the United States, any order made, or that shall be made, by such court agreeably to the State law for the ratable distribution or payment of any dividend of assets to the creditors of such corporation or company while such State court shall remain actually or constructively in possession or control of the assets of such corporation or company shall be deemed valid notwithstanding proceedings in bankruptcy may have been commenced and be pending against such corporation or company. APPROVED, February 13, 1873. FORTY-SECOND CONGRESS. SESS. III. CH. 235, 236. 1873. CHAP. CCXXXV.-An Act to declare the true Intent and Meaning of the Act approved Law. Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That it was the true intent and meaning of an act approved June eighth, eighteen hundred and seventytwo, entitled "An act to amend an act entitled An act to establish a uniform system of bankruptcy throughout the United States,' approved March second, eighteen hundred and sixty-seven," that the exemptions allowed the bankrupt by the said amendatory act should, and it is hereby enacted that they shall, be the amount allowed by the constitution and laws of each State, respectively, as existing in the year eighteen hundred and seventy-one; and that such exemptions be valid against debts contracted before the adoption and passage of such State constitution and laws, as well as those contracted after the same, and against liens by judgment or decree of any State court, any decision of any such court rendered since the adoption and passage of such constitution and laws to the contrary notwithstanding. APPROVED, March 3, 1873. 577 March 3, 1878. 1872, ch. 339. Ante, p. 334. Exemptions allowed a bankrupt to be the same as allowed in any State in 1871. and to be valid against, &c. 178 June 22, 1874. FORTY-THIRD CONGRESS. SESS. 1. CH. 389, 390. 1874. CHAP. 390.-An act to amend and supplement an act entitled "An act to establish a 1867, ch. 176, vol uniform system of bankruptcy throughout the United States," approved March second, ziv, pp. 517-541. eighteen hundred and sixty-seven, and for other purposes. amended. Be it enacted by the Senate and House of Representatives of the United Bankrupt act States of America in Congress assembled, That the act entitled “An act to establish a uniform system of bankruptcy throughout the United States", approved March second, eighteen hundred and sixty-seven, be, and the same is hereby, amended and supplemented as follows: That Court may direct the court may, in its discretion, on sufficient cause shown, and upon receiver or assignee notice and hearing, direct the receiver or assignee to take possession to carry on business of the property, and carry on the business of the debtor, or any part of debtor; thereof, under the direction of the court, when, in its judgment, the period exceeding interest of the estate as well as of the creditors will be promoted thereby, nine months; but not for a period exceeding nine months from the time the debtor provided majority shall have been declared a bankrupt: Provided, That such order shall of creditors in value not be made until the court shall be satisfied that it is approved by a majority in value of the creditors. but not for a shall approve. 79-956 0 - 77 - pt. 1 - 5 Amendment of Bection 1. Amendment of section 2. Assignee to sell property of bankrupt at public auction. notice of sales. over sales; SEC. 2. That section one of said act be, and it is hereby, amended by adding thereto the following words: "Provided, That the court having charge of the estate of any bankrupt may direct that any of the legal assets or debts of the bankrupt, as contradistinguished from equitable demands, shall, when such debt does not exceed five hundred dollars, be collected in the courts of the State where such bankrupt resides having jurisdiction of claims of such nature and amount." SEC. 3. That section two of said act be, and it hereby is, amended by striking out, in line ten, the words "the same," and inserting the word "any"; and by adding next after the words "adverse interest," in line twelve, the words "or owing any debt to such bankrupt." 179 one-fourth cash, res SEC. 4. That unless otherwise ordered by the court, the assignee shall sell the property of the bankrupt, whether real or personal, at public auction, in such parts or parcels and at such times and places as shall be best calculated to produce the greatest amount with the least Publication of expense. All notices of public sales under this act by any assignee or officer of the court shall be published once a week for three consecuve weeks in the newspaper or newspapers, to be designated by the judge, which, in his opinion, shall be best calculated to give general Court to have su- notice of the sale. And the court, on the application of any party in pervisory power interest, shall have complete supervisory power over such sales, includ may set aside and ing the power to set aside the same and to order a re-sale, so that the And the court may, in its order re-sale. property sold shall realize the largest sum, FORTY-THIRD CONGRESS. SESS. L. CH. 390. 1874. discretion, order any real estate of the bankrupt, or any part thereof, Court may order to be sold for one-fourth cash at the time of sale, and the residue within real estate sold for eighteen months in such instalments as the court may direct, bearing idue in instalinents. interest at the rate of seven per centum per annum, and secured by Interest on instalproper mortgage or lien upon the property so sold. And it shall be the ments. duty of every assignee to keep a regular account of all moneys received Assignce to keep and expenditures. or expended by him as such assignee, to which account every creditor account of receipts Creditors to have shall, at reasonable times, bave free access. If any assignee shall fail' or neglect to well and faithfully discharge his duties in the sale or dis- access to accounts. position of property as above contemplated, it shall be the duty of the, Penalty for neg court to remove such assignee, and he shall forfeit all fees and emolu-lect, &c., of as signee. ments to which he might be entitled in connection with such sale. And Penalty for fraud if any assignee shall, in any manner, in violation of his duty aforesaid, and corruption, &c., unfairly or wrongfully sell or dispose of, or in any manner fraudulently of assignee. or corruptly combine, conspire, or agree with any person or persons, with intent to unfairly or wrongfully sell or dispose of the property committed to his charge, he sball, upon proof thereof, be removed, and forfeit all fees or other compensation for any and all services in connection with such bankrupt's estate, and, upon conviction thereof before any court of competent jurisdiction, shall be liable to a fine of not more than ten thousand dollars, or imprisonment in the penitentiary for a term of not exceeding two years, or both fine and imprisonment, at the discretion of the court. And any person so combining, conspiring, or agree- Penalty for com ing with such assignee for the purpose aforesaid shall, upon conviction, bining, conspiring, Assignee to report be liable to a like punishment. That the assignee shall report, under &c., with assignee. oath, to the court, at least as often as once in three months, the con- to court condition of dition of the estate in his charge, and the state of his accounts in de- estate and of his actail, and at all other times when the court, on motion or otherwise, shall counts. so order. And on any settlement of the accounts of any assignee, he shall be required to account for all interest, benefit, or advantage re- To account for inceived, or in any manner agreed to be received, directly or indirectly, terest, &c. from the use, disposal, or proceeds of the bankrupt's estate. And he shall be required, upon such settlement, to make and file in court an affidavit declaring, according to the truth, whether he has or has not, as the case may be, received, or is or is not, as the case may be, to receive, directly or indirectly, any interest, benefit, or advantage from the use or deposit of such funds; and such assignee may be examined orally May be examined orally. upon the same subject, and if he shall willfully swear falsely, either in such affidavit or examination, or to his report provided for in this section, he shall be deemed to be guilty of perjury, and, on conviction Penalty for false thereof, be punished by imprisonment in the penitentiary not less than swearing. one and not more than five years. To file affidavit. SEC. 5. That section eleven of said act be amended by striking out Amendment of the words "as the warrant specifies," where they first occur, and insert- section 11. ing the words "as the marshal shall select, not exceeding two"; and inserting after the word "specifies" where it last occurs the words "But whenever the creditors of the bankrupt are so numerous as to make any notice now required by law to them, by mail or otherwise, a great and disproportionate expense to the estate, the court may, in lieu thereof, in its discretion, order such notice to be given by publication in a newspaper or newspapers, to all such creditors whose claims, as reported, do Dot exceed the sums, respectively, of fifty dollars." Amendment of SEC. 6. That the first clause of section twenty of said act be amended Amendment of by adding, at the end thereof, the words "or in cases of compulsory section 20. bankruptcy, after the act of bankruptcy upon or in respect of which the adjudication shall be made, and with a view of making such set-off." SEC. 7. That section twenty-one of said act be amended by inserting the following words in line six, immediately after "thereby ": " But a section 21. creditor proving his debt or claim shall not be held to have waived his right of action or suit against the bankrupt where a discharge has been refused or the proceedings have been determined without a discharge". 180 section 26. rupt. FORTY-THIRD CONGRESS. SESS. I. CH. 390. 1874. Amendment of SEC. 8. That the following words shall be added to section twentysix of said act: "That in all causes and trials arising or ordered under this act, the alleged bankrupt, and any party thereto, shall be a competent witness". Discharge of in- SEC. 9. That in cases of compulsory or involuntary bankruptcy, the voluntary bank-provisions of said act, and any amendment thereof, or of any supplement thereto, requiring the payment of any proportion of the debts of the bankrupt, or the assent of any portion of his creditors, as a condition of his discharge from his debts, shall not apply; but he may, if otherwise entitled thereto, be discharged by the court in the same manner and with the same effect as if he had paid such per centum of his debts, or as if the required proportion of his creditors had assented Discharge of vol- thereto. And in cases of voluntary bankruptcy, no discharge shall be untary bankrupt. granted to a debtor whose assets shall not be equal to thirty per centum of the claims proved against his estate, upon which he shall be liable as principal debtor, without the assent of at least one-fourth of his credRepeal of part of itors in number, and one-third in value; and the provision in section thirty-three of said act of March second, eighteen hundred and sixtyseven, requiring fifty per centum of such assets, is hereby repealed. Amendment of SEC. 10. That in cases of involuntary or compulsory bankruptcy, the section 35. Bection 35. section 39. period of four months mentioned in section thirty-five of the act to which this is an amendment is hereby changed to two months; but this provision shall not take effect until two months after the passage of this act. And in the cases aforesaid, the period of six months mentioned in said section thirty-five is hereby changed to three months; but this provision shall not take effect until three months after the pas sage of this act. SEC. 11. That section thirty-five of said act be, and the same is hereby, amended as follows: First. After the word "and" in line eleven, insert the word "know. ing". Secondly. After the word "attachment", in the same line, insert the words "sequestration, seizure". Thirdly. After the word "and", in line twenty, insert the word "knowing". And nothing in said section thirty-five shall be construed to invalidate any loan of actual value, or the security therefor, made in good faith, upon a security taken in good faith on the occasion of the making of such loan. Amendment of SEC. 12. That section thirty-nine of said act of March second, eighteen hundred and sixty-seven, be amended so as to read as follows: Who may be ad- "SEC. 39. That any person residing, and owing debts, as aforesaid, judged bankrupts who, after the passage of this act, shall depart from the State, District, or Territory of which he is an inhabitant, with intent to defraud his creditors; or, being absent, shall, with such intent, remain absent; or shall conceal himself to avoid the service of legal process in any action for the recovery of a debt or demand provable under this act; or shall conceal or remove any of his property to avoid its being attached, taken, or sequestered on legal process; or shall make any assignment, gift, sale, conveyance, or transfer of his estate, property, rights, or credits, either within the United States or elsewhere, with intent to delay, defraud, or hinder his creditors; or who has been arrested and held in custody under or by virtue of mesne process or execution, issued out of any court of the United States or of any State, District, or Territory within which such debtor resides or has property, founded upon a demand in its nature provable against a bankrupt's estate under this act, and for a sum exceeding one hundred dollars, and such process is remaining in force and not discharged by payment, or in any other manner provided by the law of the United States or of such State, District, or Territory, applicable thereto, for a period of twenty days, or has been actually imprisoned for more than twenty days in a civil action founded on contract for the sum of one hundred dollars or upward; or who, being bankrupt or insolvent, or in contem FORTY-THIRD CONGRESS. SESS. I. CH. 390. 1874. Proviso. 181 section to apply to Provisions of this cases of compulsory plation of bankruptcy or insolvency, shall make any payment, gift, grant, sale, conveyance, or transfer of money or other property, estate, rights, or credits, or confess judgment, or give any warrant to confess judgment, or procure his property to be taken on legal process, with intent to give a preference to one or more of his creditors, or to any person or persons who are or may be liable for him as indorsers, bail, sureties, or otherwise, or with the intent, by such disposition of his property, to defeat or delay the operation of this act; or who being a bank, banker, broker, merchant, trader, manufacturer, or miner, has fraudulently stopped payment, or who being a bank, banker, broker, merchant, trader, manufacturer, or miner, has stopped or suspended and not resumed payment, within a period of forty days, of his commercial paper, (made or passed in the course of his business as such), or who, being a bank or banker, shall fail for forty days to pay any depositor upon demand of payment lawfully made, shall be deemed to have committed an act of bankruptcy, and, subject to the conditions hereinafter prescribed, shall be adjudged a bankrupt on the petition of one or more of his creditors, who shall constitute one-fourth thereof, at least, in number, and the aggregate of whose debts provable under this act amounts to at least one-third of the debts so provable: Provided: That such petition is brought within six months after such act of bankruptcy shall have been committed. And the provisions of this section shall apply to all cases of compulsory or involuntary bankruptcy commenced since the first day of December, eighteen hundred and seventy-three, bankruptcy com. as well as to those commenced hereafter. And in all cases commenced menced since Desince the first day of December, eighteen hundred and seventy-three, cember 1, 1873, and prior to the passage of this act, as well as those commenced hereafter, the court shall, if such allegation as to the number or amount of Debtor denying petitioning creditors be denied by the debtor, by a statement in writing allegation as to to that effect, require him to file in court forthwith a full list of his number or amount creditors, with their places of residence and the sums due them respect of petitioning cred ively, and sball ascertain, upon reasonable notice to the creditors, itors to file list of whether one-fourth in number and one-third in amount thereof, as afore creditors and sums said, have petitioned that the debtor be adjudged a bankrupt. But if due them. such debtor shall, on the filing of the petition, admit in writing that the If debtor admit, requisite number and amount of creditors have petitioned, the court (if court shall so adsatisfied that the admission was made in good faith,) shall so adjudge, judge, and matter which judgment shall be final, and the matter proceed without further steps on that subject. And if it shall appear that such number and amount have not so petitioned, the court shall grant rea- where number and sonable time, not exceeding, in cases heretofore commenced, twenty days, and, in cases hereafter commenced, ten days, within which other creditors may join in such petition. And if, at the expiration If at expiration of such time so limited, the number and amount shall comply with of time number and the requirements of this section, the matter of bankruptcy may proceed; swered, matter to but if, at the expiration of such limited time, such number and amount proceed. shall not answer the requirements of this section, the proceedings shall If number and be dismissed, and, in cases hereafter commenced, with costs. And if such person shall be adjudged a bankrupt, the assignee may recover dismissed. proceed. Extension of time amount have not petitioned. amount have an amount have not answered, case to be |