THE INSOLVENCY ACT.

Evening Star, Volume IX, Issue 2678, 16 September 1871, Page 2

THE INSOLVENCY ACT.

( Continued,) 114. —lf an insolvent be entitled to a life estate in remainder expectant,'the estate is not to be sold before it falls into his possession without express order of the Court. 115. The Court may order debts due to the insolvent to be paid, and prescribe the mode which in payment shall be made. 116. Amy action must be commenced within six months after the cause of action has arisen against a person for anything done under the Act. The defendant may plead the general issue, and give the. Act and the special matter in evidence at the trial. 117-—No books nor papers to be witheld from the trustee. 118. —lf personal estate of a deceased person be sequestrated and not sufficient to pay the debts proved or provable, the Court may order vesting the real estate in the trustee for distribution among the creditors. 119. —The distribution to be on the same principles as the estate of a living person. 120. —lnsolvents having real or personal estate elsewhere than in New Zealand, in reversion or expectancy, may be ordered by the Court to execute all necessary deeds, to enable the trustee to realise or make available the whole or such part of the proceeds as the Court may direct for distribution amongst the creditors. 121. On reason being shown to the Judge proving that the insolvent has been guilty of fraud or concealment of property, or has absconded, the Judge may order for three mouths, from the date of the order of sequestration, that all post letters directed er addressed to an insolvent, shall be redirected and sent by the Postmaster-General to the Judge, who may deal with them as he thinks proper. 122. —lf the produce of the estate of an insolvent shall he sufficient to pay twenty shillings in the pound and leave a surplus, the Court, after three days’ notice in writing to the trustee, may order the remainder to be conveyed to the insolvent or his assigns. Proof of Debts. 123. —Debts may be proved by sending to the assignee or trustee by post, or otherwise, an affidavit or declaration by the creditor wi ;h a full statement of account 124. —Creditors are not allowed to vote at meetings, who have had notice of an application to expunge or reduce the debt claimed. 125. —Trustees must examine proofs and compare them with the insolvent’s books. 126. —The Court may admit, expunge, or reduce a debt on application of a creditor or trustee. 127. —No distress for rent to be levied after sequestration, but landlords to be entitled to be paid three months rent, and to be allowed to claim as creditors, for the balance.

128. —Provision be is to be made by the trustee for dividends due to creditors resident at such a distance as not to be able to send their proofs. 129. Claims against insolvent estates that may be established, may be entered on the proceedings, and reasonable time givep for proving them. - 130. —Debts provable, may be proved any time before the final distribution of the estate, and the dividend is to be in the same proportion as the other creditors. 131. —Persons entitled to costs or expenses of any Court are entitled to come in as creditors. 132. —Demands for unliquidated damages, not arising from contract or promise, cannot be proved in insolvency. Debts provable are present, future, certain, or contingent, at the date of the order of sequestratioq.

133. —Preferential debts are local rates, due at the date of the order of sequestration, Wages due to clerks or servants for not exceeding four months and not exceeding fifty pounds, aud wages to laborers and workmen, if not for a period exceeding two months 134. -Apprentices on giving notice in writing to trustee to be discharged from indenture or articles, aud such portion of premium repaid as the .Court may decide, or if thought expedient by the trustee, may be transferred, to some other person. 135 and 133 relate to proofs of debt for rent and interest.

137 and 138 provide for proving debts under distinct contracts, and on the separate estate of an insolvent partner in a firm, 139. —Trustees or a committee of inspection are empowered to make allowances for insolvents for assistance in winding up the estate. 140. Where set-off's are claimable, a dividend on the balance of account only is to bo claimed. 141. —A creditor holding a security, may, on giving it up, prove for the full amount of his debt. Distribution of Estate. 142. Trustees are to pay—l. Taxed costs dr expenses incurred. 2 Remuneration or commission allowed by the Act. 3. Preferential debts. 4. Dividends to creditors. 143. Trustees are to file statement of account in the Court. 144. The Court may inquire into aud disallow charges. 143 aud 14G relate to joint and separate dividends, and for giving notice of dividends. 147. —Requires unclaimed dividends to be advertised in the New Zealand Gazette aud in some newspaper ; and if not claimed within six months, to be placed to the credit of a trust fund to be called the Insolvency Uu claimed Dividend Fund. The Governor is empowered to direct them to be invested in New Zealand debentures, the interest to form a fund to be called the Insolvency Suitors’ Fund. On application by persons entitled to

receive them, the Colonial Treasurer, on being directed by the Court, must pry the amount. The cost of inquiries or proceedings in insolvent estates, instituted on the application of the Accountant in Insolvency, arc to be paid out'of the Insolvent Suitors’ Fund. Part 7.—Thu Insolvent. 148. to the duties of an insolvent and provides that, for wilful neglect of the> prescribed duties, or for failing to deliver up possession of bis properry, he may be punished. , , 149. —The Court may by warrant cause the insolvent to bo arrested. 1. If there is probable reason that he is about to leave the Colony. 2 if there is probable cause for believin" that the insolvent is about to remove his goods to prevent their beihg taken poscession of by the trustee. 3. If, after sequestration the insolvent remove goods and chattels to the amount of five pounds without leave from the trustee. lot). - The death of an insolvent is not to interfere with the distribution of his estate. 151. —Three fourths in number and value of the creditors may agree to a composition or security for it, and the Court may release the estate of an insolvent from sequestration. 152. —On payment of an Insolvent s debts in full, or on obtaining a legal release from his creditors, the Court may release his estate, making an aoder for payment of costs, commission, or remuneration. 153 —An order of the Court, releasing the estate of an insolvent from sequestration, revests all property not disposed of on the insolvent.