THE INSOLVENCY ACT.

Evening Star, Volume IX, Issue 2676, 14 September 1871, Page 2

THE INSOLVENCY ACT.

( Conlinwl.) Section 91. —Declares all warrants of At* torney or other similar powers over the estate of an insolvent after sequ stration, and before receiving his certificate, fraudulent and absolutely void. 92 —iNo creditor, having claims upon an insolvent provable in the insolvency, shall have any remedy against the insolvent, excepting as directed by the Act. But this provision does not extend to realizing upon security held. 93. —Wi'.hout prejudice to the provisions of the Act, certain specified transactions are made valid. They are first, any sale or co; • tract for the t ansfer of property or go >■ s for a valuable consideration before the date of the order of sequestration, provided t’ e arrangement is made with a person hj iving no notice of any act of insolvency committed by the insolvent. Second, execution or attachment against the insolvent’s land by seizure before the date of sequestration, provided the person on whose account the seizure was made, had no notice of any act of insolvency. Thirdly, subject to the same proviso, execution, or attachment, against the goods of an insolvent. 94. —No sale by the Sheriff’? or Magistrate’s Court’s bailiff, under judgment for the sum of ten pounds or upwards, is to be made until four days after siezure, and the Sheriff or bailiff is required to hold the proceeds for eight days, within which time, if the estate is sequestrated, the proceeds mutt be handed over to the assignee or trustee as assets of the estate : the person on whole behalf the sale has been made must then prove his debt. 95. —On sequestration of the estate, all actions against the insolvent must be stayed ; the plaintiffs to have taxed costs out of the estate if not exceeding fifty pounds. 96. —lf the insolvent is not in prison att‘ e date of his insolvency, he shall be free from arrest for any debt provable in insolvent, until otherwise ordered by the Court. The remainder of the clause relates to the effect of his protection orde • from the Court, and Inflicts a fine of not exceeding ten pounds per day upon any officer detaining the insolvent beyond the time necessary for obtain* ing a copy of it. 97. —All actions commenced by an insol* vent to be stayed until the assignees or trustees decide whether they shall be prosecuted or not. 98. —Persons who are joint contractors with an insolvent may be sued in respect of the contract without joinder of the insolvent. 99j—Trustees, on suggestion of the sequestration, may continue or withdraw from any suit or action affecting the insolvent estate, and may take legal advics or employ a solicitor to commence or defend actions, 100. —Trustees or assignees to exercise the same right to tansfer property as if the insolvent had not had his estate sequestrated. 101. —Trustees are required to keep proper minute books of proceeding at meetings which may, under the control of the Court, be inspected. 102. —Assignees and trustees may apply in writing to the Court or Judge ; and, by acting on such advice, are to be deemed to have discharged their duty, provided they have been guilty of no fraud nor misrepresentation in regard to the matter on which advice is asked, 103. —'trustees are at liberty to disclaim unsaleable property, which must then revert to the person entitled, on the determination of an insolvent estate. Persons interested in the disclaimed property may apply for an orderfromthcCourt, and anyo..e injured must prove under the estate. A trustee may not disclaim property if he have beau applied to in writing by a person interested. 104. —Trustees are empowered to decide on proof of debts ; administer oaths ; carry on the business, when necessary, to its successful winding up ; bring or defend actions ; deal with the insolvent’s property as he might have dealt with it; execute deods ; sell the property; give receipts for money, which shall be good discharges; prove claims, and receive dividends in insolvent estates. 105. —The trustees may appoint the insolvent himself to supe. intend the management of the property, or carry on the business for the benefit of the creditors. 103.—8y special resolution at a general meeting, a trustee may raise money on mortgage of property, refer disputes to arbitration, compromise debts, arrange with creditors, and divide assets proportionately ta each creditor’s claim. The meeting may authorise auy or all of these provisions.

107. If the trustee is a solicitor, he may contract to be paid for his services. 108. The trustee must deposit sums received in a bank, to be named by the creditors. If he keep more than L2O in his hands for more than ten days, he is required to pay interest on the excess, unless he can show sufficient reason to the Court. On the application of a creditor, he shall be dismissed from his office •without remuneration, and be liable to any expenses consequent upon his dismiss'd. . , c 100. If an insolvent be a member ot a firm by direction of a Judge, a trustee may institute proceedings against a debtor of the fiim. If a partner execute a rc-leasc of that debt such re-lease is made void, provided the partner has notice given him. If no benefit be claimed by him by virtue of the proceedings, he is to be indemnified against 1(0 .._y7o assignee is to be held personally liable' for any act done in execution of his the person entitled to possession, may order conveyance or as ignmont of estates held in trust by an insolvent, to another trustee or i nso l V cnts estate be mortgaged the trustee may at any tuno tender the money borrowed, and then proceed to sell the estate. , .... . ~ 113.—-A moitgagee may be a bidder at the sale. -