ANNOTATIONS

Section 2, clause (12), line 4.

Suspended discharges are provided for by amendment to section 14 (p. 22, at p. 25).

Clause (17), line 15.

By amendment to section 44 (p. 54) there are certain types of cases in which the courts and not the creditors are to appoint the trustees. These amendments will be fully described under that section.

Line 17.

By amendment to section 45 (p. 56, at p. 58) it is provided that trustees may be removed upon complaints of referees and administrators, as well as creditors. Hence the limiting clause “ upon complaints of creditors" is here eliminated.

Line 18.

The singular rather than the plural seems preferable.

1 or trustee appointed in any any [bankruptcy] proceedings

2 under this Act pending in any other court of bankruptcy.

3

"Nothing in this section contained shall be construed

4 to deprive a court of bankruptcy of any power it would

5 possess were certain specific powers not herein enumerated.

9 ruptcy by a person shall consist of his having (1) conveyed, 10 transferred, concealed, or removed, or permitted to be con11 cealed or removed, any part of his property with intent to 12 hinder, delay, or defraud his creditors, or any of them; or 13 (2) transferred, while insolvent, any portion of his prop14 erty to one or more of his creditors with intent to prefer 15 such creditors over his other creditors; or (3) suffered or 16 permitted, while insolvent, any creditor to obtain a pref17 erence through legal proceedings, and not having at least 18 five days before a sale or other disposition of any property 19 affected by such preference vacated or discharged such pref20 erence; or (4) suffered, or permitted, while insolvent any 21 creditor to obtain through legal proceedings any levy, attach22 ment, judgment, or other lien and not having vacated or 23 discharged the same within thirty days from the date such 24 levy, attachment, judgment, or other lien was obtained; or 25 (5) made a general assignment for the benefit of his cred

1 itors which has not been filed as provided in section 74 2 of this Act; or (6) while insolvent, a receiver or a trustee 3 has been appointed, or put in charge of his property in a 4 proceeding not instituted under this act; or [(6)] (7) 5 admitted in writing his inability to pay his debts and his 6 willingness to be adjudged a bankrupt on that ground; or 7 (8) while insolvent, authorized in writing an agent to take 8 possession of and liquidate his property.

9 “(b) A petition may be filed against a person who is 10 insolvent and who has committed an act of bankruptcy 11 within four months after the commission of such act. Such 12 time shall not expire until four months after [(1)] the 13 date of the recording or registering of the transfer or assign14 ment when the act consists in having made a transfer of any 15 of his property with intent to hinder, delay, or defraud his 16 creditors or for the purpose of giving a preference as herein17 before provided, or a general assignment for the benefit of 18 his creditors, if by law such recording or registering is 19 required or permitted, or, if it is not, from the date when 20 the beneficiary takes notorious, exclusive, or continuous 21 possession of the property unless the petitioning creditors 22 have received actual notice of such transfer or assignment.

23

"(c) It shall be a complete defense to any proceedings 24 in bankruptcy instituted under the first clause of subdivision 25 (a) of this section to allege and prove that the party pro

ANNOTATIONS

Section 3a, clause (5), lines 1 and 2.

Section 74 (p. 115) provides that assignments to authorized trustees (the authorization of trustees is covered in sec. 45 at p. 56) may be filed. Since the filing brings the whole proceeding under the act, the assignment should thereupon cease to be an act of bankruptcy.

Clause (6), line 2.

The receivership act of bankruptcy, for purposes of clarity and cross reference, is given a separate number.

Lines 3 and 4.

The clause in italics is inserted simply to make it clear that the appointment of a receiver or a trustee under any of the new proceedings for debtors under sections 73 to 76, inclusive, shall not constitute an act of bankruptcy.

Clause (8), lines 7 and 8.

This is a new act of bankruptcy. In certain localities a practice has developed whereby an insolvent debtor, instead of executing an assignment for the benefit of creditors, gives a power of attorney to some person, authorizing him to take possession of and liquidate the debtor's property. This device is used in order to avoid an act of bankruptcy. The result of the transaction is the same as though an assignment had been executed and it is felt that they should be treated on the same footing.

Section 3b, line 12.

There appears to be no reason for the insertion of the numeral (1), and it is therefore eliminated.

Section 3c, lines 24 and 25.

The former words "the first subdivision of this section" have been construed to mean the first clause of subdivision (a) (fraudulent transfers, concealments, etc.). West Co. v. Lea (1899), 174 U. S. 590. The amendment is simply a clarification.