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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, bas 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, 1873, as well as to those commenced hereafter. And in all cases commenced since the first of December, 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 petitioning creditors be denied by the debtor, by a statement in writing to that effect, require him to file in court forth with a full list of his creditors, with their places of residence and the sums due them respectively, and shall ascertain, upon reasonable notice to the creditors, whether one-fourth in number and one-third in amount thereof, as aforesaid, have petitioned that the debtor be adjudged a bankrupt. But if such debtor sball, on the filing of the petition, admit in writing that the requisite number and amount of creditors have petitioned, the court (if satisfied that the admission was made in good faith), shall so adjudge, 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 reasonable 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 of such time so limited, the number and amount sball comply with the requirements of this section, the matter of bankruptcy may proceed; but if, at the expiration of such limited time, such number and amount shall not answer the requirements of this section, the proceedings shall be dismissed, and, in cases hereafter commenced, with costs. And if such person shall be adjudged a bai krupt, the assignee may recover back the money or property so paid, conveyed, sold, assigned, or transferred contrary to this acı : Provislei, That the person receiving such payment or convey:nce bad reasonable cause to believe that the debtor was insolvent, and knew that a fraud on this act was intended; and such person, if a creditor, shall not, in cases of actual fraud on his part, be allowed to prove for more than a moiety of his debt; and this limitation on the proof of debts shall apply to cases of voluntary as well as involuntary bankruptcy. And the petition of creditors under this section may be sufficiently verified by the oaths of the first five signers thereof, if so many there be. And if any of said first five signers shall not reside in the district in which such petition is to be filed, the same may be signed and verified by the oath or oaths of the attorney or attorneys, agent or ngents, of such signers. And in computing the number of creditors, as aforesaid, who shall join in such petition, creditors whose respective debts d', not exceed $250 shall not be reckoned. But if there be no creditors whose debts exceed said sum of $250, or if the requisite number of creditors holding debts exceeding $250 fail to sign the petition, the creditors having debts of a less amount shall be reckoned for the pur
Upon the filing of the petition authorized by the preceding section, if it appears that sufficient grounds exist therefor, the court shall direct the entry of an order requiring the debtor to appear and show cause, at a court of bankruptcy to be holden at a time to be specified in the order, not less than five days from the service thereof, why the prayer of the petition should not be granted.
SERVING OF ORDER TO SHOW CAUSE.
A copy of the petition and order to show cause shall be served on the debtor by delivering the same to him personally, or leaving the same at bis last or usual place of abode, or if he cannot be found, and his place of residence cannot be ascertained, service shall be made by publication in such manner as the judge may direct.
On the return or adjourned day, if the notice has been served or publisbed, or is waived by the appearance and consent of the debtor, the court shall proceed summarily to hear the allegations of the petitions and debtor.
Up in the bearing or trial of the facts set forth in the petition and found to be true, or upon default made by the debtor to appear pursuant to the order, due proof of service thereof is made the court shall adjudge the debtor to be a bankrupt, and shal forth with issue a warrant to take possession of his estate.
TO REALIZE FROM THE ESTATE FOR CREDITORS. Notice to creditors shall state that a warrant in bankruptcy bas been issued against the estate of the debtor. Proper returns shall be made at a meeting of the creditors. An assignee shall be appointed or chosen. No preference shall be given to any creditor. Assignee shall give bond for the faithful discharge of duties.
The debtor is entitled to exemption the necessary household and kitchen furniture, and such other articles and necessaries as the assignee may designate and set apart, having reference to the number of his family, condition, and circumstances of the debtor, not to exceed the sum of $500; wearing apparel of himself, wife, and children; all property as are exempted from attachment by the laws of the United States; also such property as is exempted by the laws of the State of which the debtor is a resident; the uniform, arms, and equipments of any person who has been a soldier in the service of the United States.
PROTECTION AND DISCHARGE OF BANKRUPT8. The debtor shall at all times be subject to the order of the court until his discharge. No creditor shall be allowed to maintain any suit at law or in equity against the bankrupt. Pending the proceedings of bankruptcy the debtor cannot be arrested in any civil action, unless the debt is founded on some debt which his discharge in bankruptcy would not release him.
After the expiration of six months from the adjudication of bankruptcy, the debtor may apply for a discharge from his debts. But no discharge shall be granted if the bankrupt has wilfully sworn falsely ; if he has concealed any part of his estate or effects, or any books or writings relating thereto; if ne has witbin four months previous to the commencement of proceedings procurod his lands, goods, etc., to be attached or seized on execution, or in any way destroyer, mutilated, altered, or falsified his books, etc.; or has given any fraudulent preference contrary to the provisions of this act; or if the bankrupt has been con. victed of any misdemeanor.
BANKRUPTCY OF PARTNERSHIPS AND CORPORATIONS.
Where two or more are partners in trade shall be adjudged bankrupt, either on the petition of such partners or any one of them, or on the petition of any creditor of the partners, a warrant shall issue in the manner provided by this act, upon whicb
all the joint stock and property of the copartnership, and also all the separate estate of each of the partners shall be taken, excepting such parts thereof as are hereinbefore excepted; and all the creditors of the company, and the separate creditors of each partner, shall be allowed to prove their respective debts ; and the assignee shall be chosen by the creditors of the company, and shall also keep separate accounts of the joint stock and property of the copartnership and of the separate estate of each member thereof; and after deducting out of the whole amount received by such assignee the whole of the expenses and disbursements, the net proceeds of the joint stock shall be appropriated to pay the creditors of the copartnership, and the net proceeds of the separate estate of each partner shall be appropriated to pay his separate creditors, and if there shall be any balance of the separate estate of any partner, after the payment of his separate debts, such balance shall be added to the joint stock for the payment of the joint creditors; and if there shall be any balance of the joint stock after payment of the joint debts, such balance shall be divided and appropriated to and among the separate estates of the several partners, according to their respective right and interest therein, as it would have been if the partnership had been dissolved without any bankruptcy; and the sum so appropriated to the separate estate of each partper shall be applied to the payment of his separate debts; and the certificate of his discharge shall be granted or refused to each partner as the same would or ought to be if the proceedings had been against him alone; in all other respects the proceedings against partners shall be conducted in the like manner as if they had been commenced and prosecuted against one perBon alone.
The provisions of this act shall apply to all moneyed, business, or commercial corporations and joint stock companies, and that upon the petition of any officer of any such corporation or company, duly authorized by a vote of a majority of the corporators present at any legal meeting called for the purpose, or upon the petition of any creditor or creditors of such corporation or company, made and presented in the manner heretofore provided in respect to debtors, the like proceedings shall be bad and taken as are hereinafter provided in the case of debtors, and all the provisions of this act which apply to the debtor, or set forth his duties in regard to furpishing schedules and inventories, executinc papers, submitting to examinations, disclosing, making over, secreting, concealing, conveying, assigning, or paying away bis money or property, shall in like manner, and with like force, effect and penalties, apply to each and every officer of such corporation or company in relation to the same matters concerning the corporation or company, and the money and property thereof.
All paymerts, conveyances, and assignments declared fraudulent and void by this act when made by a debtor. shall, in like mauner, and to the like extent, and with like remedies, be fraudulent and void when made by a corporation or company. No allowance or discharge shall be granted to any corporation or joint stock company, or to any person or officer or member thereof; provided that whenever any corporatio by proceedings under this act, shall be declared bankrupt, all its property and assets shall be distributed to the creditors of such corporation in the manner provided in this act in respect to natural persons.
FEES AND COSTS.
In each case there shall be allowed and paid, in addition to the fees of the clerk of the court, as now established by law, or as may be established by general order, for fees in bankruptcy, the following fees, which shall be applied to the payment for the services of the registers :
For issuing every warrant, $2.
For every order substituting an arrangement by trust deed for bankruptcy, $2.
For every bond with sureties, $2.
For every application for any meeting in any matter under this act, $1.
For every day's service while actually employed under a special order of the court, a sum not exceeding $5, to be allowed by the court.
For taking depositions, the fees now allowed by law.
Such fees shall bave priority of payment over all other claims out of the estate, and before a warrant issues the petitioner shall deposit with the clerk $50 as security for the payment thereof; and if there are not sufficient assets for the payment of the fees, the person upon whose petition the warrant is issued shall pay the same, and the court may issue an execution against him to compel payment to the register.
Before any dividend is ordered the assignee shall pay out of the estate of the messenger the fo'lowing fees, and no more:
First.--For service of warrant, $2.
Second.-For all necessary travel, at the rate of five cents a mile each way.
Third.-For each written note to creditor named in the schedule, ten cents.
Fourth.-For custody of property, publication of notices, and other services, his actual and necessary expenses upon returning