THE INSOLVENCY ACT.

Evening Star, Volume IX, Issue 2673, 11 September 1871, Page 2

THE INSOLVENCY ACT.

( Continued.) Part 6.— Vesting and Realization of Estate. Section 70.—Insolvency of a debtor whose estate is sequestrated under part 4 is to commence at the date of the order of sequestra'ion, except an act of insolvency has been committed, when it is to date from the date of the commission of the first act of insolvency proved to have taken place within twelve months prior to the order of sequestration. If the sequestration be under part 5, the date of insolvency is to be reckoned from the act of insolvency committed, or if more than one such act from the earliest proved, if within twelvemonths prior to the order of sequestration. But this dating back is not to take place unless the insolvent was indebted to some creditor or creditors in amounts sufficient to support a petitiou, and the debts are unpaid at the date of the order of sequestration. Section 71.—The. property of the insolvent placed by order of sequestration in the hands of an assignee is to vest absolutely in such assignee. Section 72—Where an estate has been assigned to trustees for the benefit of the creditors generally, such trustees shall, unless otherwise ordered by the Court, be appointed by the order or order nm for sequestration instead of an assignee. 73. —The order of the Court confirming the election or appointment of a trustee, shall divest the assignee and vest v the insolvent e-date in such trustee. 74. —On theVleath, resignation, or removal of any assignee or trustee, an assignee or new trustee may be appointed, with similar powers to the first appointed. 75. —Enumerates the regulations with respect to the trustee and committee of inspection : Ist. The creditors may declare whether any act is to be done by both trustees, or by one only when two are appointed ; but the trustees are to be joint tenants of the insolvent estate. No person dealing with them is bound to enquire whether they are authorised to do any particular act by the creditors or committee of inspection, hut the trustee is answerable for his acts. The creditors may elect persons to act as trustees in succession should ope or mors persons decline to accept office, 2nd. If there is no trustee, the Court may appoint an assignee. 3rd. In case of death or resignation of a trustee, the remaining trustee may convene a general mce'.iug of creditors for electing another, or it may he called by the registrar on the requisition of any creditor. 4th. If a trustee become insolvent, he shall cease to be a trustee and the registrars may call a meeting of creditoi s to elect another, sth, A trustee of an in-

solvent -estate may be sued by the official name of “ Tins tee of the property of, &c.” —and may by that name hold property, make contracts, sue, be sued, and enter into engagements. 6th. Any member of a committee of inspection may resign office. 7th. The creditors may fix the quorum to be present at meetings of the committee of inspection. Bth. The creditors may fill up any vacancy in the committee Otb. The remaining members of the committee may act notwithstanding the occurrence of a vacancy. 10th. No irregularity or defect in the election of a trustee, shall vitiate an act done by him. 11 Insolvency of a member of a committee of inspection disqualifies from continuing to hold office. 12. All acts authorised to be done by a committee may be done by the Court, on the application of a trustee, should no committee have been appointed. 76. —Assignees or trustees may attach an insolvent estate, and make an inventory thereof. 77 prescribes the mode of taking possession of the property of an insolvent, after which c.n removal, embezzlement, concea - meet, or receiving any portion of it, a person shall be liable on conviction to be imprisoned, with or without hard labor, for three years. 78. —The property of an insolvent dcvisible among the creditors may be seized by the assignee or trustee, who may break open any building where the insolvent is supposed to be, or where the property is supposed to be ; or if suspected to be concealed in a bouse or place not belonging to the insolvent, the Court or Judge may grant a search warrant and seize any of his property, excepting his necessary wearing apparel. 79. —All money or securities held by bankers or agents must be handed over by them to trustees, ox*, on refusal, they may he punished for contempt of Court. 80. —General meetings of creditors shall be held as prescribed, provided—lst. That they shall be presided over by the Registrar or an elected chairman. 2nd. No creditor to be entitled to vote unless he has proved his debt. 3rd. No creditor is to vote in respect to an unliquidated or contingent debt, or a debt the value of which is not ascertained. 4th. A secured creditor can only vote in respect of the balance due after deducting the balance of the security. sth, The meaning of thettrm “secured creditor” is to be a creditor holding a mortgage, charge, or lien on the insolvent estate. 6th. Votes may be personal or by proxy. 7th. Ordinary resolutions to be decided by a majority in value of the creditoi’S. 9th. Special resolutions to be decided by a majox-ity in mimbei'. and three-fourths in value of the creditors ami proxies, 10th. The assignee or trustee may call a general meeting of creditors, when required, by one-fourth in value of the creditors. 81. 82, and S3, define the duties of assignees and trustees, and contain provisions for calling meetings of the Committee of Inspection every three months, and for audit of accounts, as well as to ascertain the wishes of the creditors. 8t dese ibes property not divisible amongst creditors. 1. Property held by the insolvent in trust. 2. Tools of his trade, wearing apparel and bedding for himself, wife, a- d children, not exceeding twenty pounds in value. The creditors, by resolution, may direct that the whole or any part of tools of trade, furniture, and wearing apparel may he given to the insolvent, but it must comprise (3) property belonging to the insolvent at the commencement of insolvency, or acquired or devolving upon him during its continuance. 4. All control over his properly that might have been exercised by himself but for his insolvency. 5. All goods and chattels in his possession by consent and permission of the true owxxer, of which the insolvent is the reputed owner, or over which he acts as owner. 85 —Conveyances, assignments, &q., that under this Act would be acts of insolvency, are void against trustees ; but under a conveyance or assignment for the benefit of creditors ail hj ma jith- acts done by a trustee shall not be affected by the sequestration, unless the trustee had notice beforehand that proceedings for that purpose were about to be taken. 86. —A reasonable proportion of the salary of insolvent officers of the Government, or on half-pay salary, shall be received by the trustee for distribution among the creditors. 87. —lnsolvents in receipt of salaries must pay what the Court thinks fit to the trustees for division among creditors. 88. —All settlements arc made void, as against the assignee or trustee, by the Act if the settlor become insolvent within two years after their date, and within five years against the insolvent, unless he can prove tlxathc was able to pay his debts at the time of making it without (he aid of that property. Exceptions : property settled before and in consideration of marriage, or hom. fide in pursuance of an ante-nuptial contract, or made in favor of a purchaser in good faith and for valuable consideration. 89. —Conveyances or transfer of property payments made, obligations incurred by an insolvent to a creditor, with a view to giving him a prefei-ence, if made within three mouths before insolvency, are to be deemed fraudulent preferences, and void against the assignee or trustee. 90. —The following class of transactions are to be construed valid : —l. Payment for value received to an insolvent by a person not having notice of any act of insolvency. 2. Payment or delivery of money on goods before tbodate of the order for sequestration. 3. Contracts made in good faith before the date of the order for sequestration by a person not having notice of any act of insolvency having been committed.