DEBTOR AND CREDITOR LAW LAWS 1909, CHAP. 17 AN ACT relating to debtors and creditors, constituting chapter twelve of the consolidated laws. Became a law, February 17, 1909, with the approval of the Governor. Passed, three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows: t Article DEBTOR AND CREDITOR LAW CHAPTER 12 OF THE CONSOLIDATED LAWS 1. Short title (§ 1).. 2. General assignments for the benefit of creditors (§§ 2-24). 3. Insolvent's discharge from debts (§§ 50-88). 4. Insolvent's exemption from arrest and imprisonment (§§ 100-111). 5. Judgment debtor's discharge from imprisonment 6. Discharge of bankrupt from judgment (§ 150). 8. Compositions by joint debtors (§§ 230-233). 9. Payment of debts of incompetent person (§§ 250255). 10. Laws repealed; when to take effect (§§ 280, 281). § 1. Short title.— This chapter shall be known as the "Debtor and Creditor Law." This is a new law consolidating statutes relating to debtors and creditors. In the report of the Board of Statutory Consolidation (1907) at p. 657, there is a note on the chapter as follows: This proposed Consolidated Law was made necessary to take care of the provisions relating to general assignments for the benefit of creditors which exist in the session laws as an independent act, certain provisions in the revised statutes relating to the powers of trustees of insolvent debtors and proceedings in the Code of Civil Procedure relating to insolvents. This arrangement will make a reference, to these matters more convenient and will relieve the code of proceedings that are not resorted to frequently, but which help to swell its volume. The name of this chapter was adopted as one which is commonly used as a heading in digests and legal works." ARTICLE 2 GENERAL ASSIGNMENTS FOR THE BENEFIT OF CREDITORS Section 2. Jurisdiction of proceedings. 3. Requisites of general assignment. 4. Debtor's schedule. 5. Notice to creditors to present claims. 6. Bond of assignee. 7. Further security. 8. *Discharge of assignee; accounting; correction of schedules. 9. Failure to file bond. 10. Action on bond; application of recovery. 11. Proceedings in case of death of assignee. 12. Notices to parties interested in the estate as creditors 13. Debts which may be proved against the estate. 15. Power of court. 16. Examination of witnesses. 17. Invalid claims. 18. Effect of orders; power of judge and duties of clerk. 19. Sale and compromise of claims and property. 20. General powers of court. 21. Trial, costs and commissions. 22. Wages and preferred claims. 23. Limitations of preferences. 24. Appraisal of insolvent estate in the hands of assignees. § 2. Jurisdiction of proceedings. The term "judge" when used in this article shall apply equally to a county judge of the county within which the assignment is recorded and to justices of the supreme court, and the term "court" when used in this article shall, in like manner, apply to the county court of such county and to the supreme court. All applications hereunder made in the supreme court shall be made to the court, or a justice thereof within the judicial district where the assignment is re *So in original. L. 1909, ch. 17 General Assignments for Creditors corded, and all proceedings and hearings under this article had in the supreme court upon the return of a citation or order shall be had at a special term of said court held in the county where the debtor resided at the time of the assignment, or in case of an assignment by copartners, in the county where the principal place of business of such copartners was at the time of such assignment, or in the case of an assignment by a corporation in the county where the principal office of such corporation was at the time of such assignment. Amended by L. 1914, ch. 360. This amendment changed the former section in the following particulars: "or order was inserted in the second sentence, and “judgment" occurring before debtor " in the former section was omitted. There was added the matter following the last comma and beginning with or in the case of." 66 The section was taken from L. 1885, ch. 380, § 1, with some change of wording. Chapter 380 gave to the Supreme Court and the justices of the Supreme Court concurrent jurisdiction under the General Assignment Act with county courts and county judges. Meaning of term “judge” generally: see GENERAL CONSTRUCTION LAW, § 26. Concurrent jurisdiction of Supreme and County Courts.- The Supreme Court has concurrent jurisdiction with the County Court to compel an assignee to account. Mills v. Husson, (1893) 140 N. Y. 99, 35 N. E. 422; Stoerzer v. Nolan, (1897) 19 App. Div. 338, 46 N. Y. S. 587; Niagara County Nat. Bank v. Lord, (1884) 33 Hun 557; Hurth v. Bower, (1883) 30 Hun 151. These courts were given concurrent jurisdiction to punish for contempt of court an assignee who wilfully neglects to obey a decree for the payment of money, a certified copy of which has been previously served on him. Matter of Merklen, (1904) 44 Misc. 169, 89 N. Y. S. 786. Jurisdiction of County Court.— Section 25 of Laws of 1877, chapter 466 (General Assignment Act) provided that any proceeding under the act was to be deemed a proceeding had in the court, as a court of general jurisdiction, and the court should have full jurisdiction to do all and every act relating to the assigned estate, the assignees, assignors and creditors, and jurisdiction should be presumed in support of the orders and decrees therein unless the contrary was shown; and after the filing or recording of an assignment under the act the court might exercise the powers of a court of equity in reference to the trust and any matters involved therein. In the case of In re Witmer, (1886) 40 Hun 64, the court said: "We think the intent and general effect of the section are merely to make the county court a court of general jurisdiction in respect to the powers given to it by the act, and to vest it with equity powers in reference to the trust and any matters involved therein, which may be brought before the court by a proceeding under the act. The county court is a court of limited jurisdiction, except as otherwise prescribed by statute, and although it is prescribed by the Code of Civil Procedure (§ 348) that where a county court has jurisdiction of an action or a special proceeding, it possesses the same jurisdiction over the same which the supreme court possesses in a like case; that section did not apply to proceedings authorized by the act of 1877, for the reason that the supreme court had not jurisdiction of proceedings of that nature, either at the time of the adoption of the code, or of the act of 1877. Jurisdiction of such proceedings has, however, been conferred on the supreme court by a later act (Laws 1885, chap. 380)." A county judge has discretionary power to compel an assignee to render an accounting. Matter of Bowery Nat. Bank, (1877) 1 Abb. N. Cas. 404. |