BILLS OF SALE.
The London “ Times ” says On November 1, a new law came into operation with regard to bills of sale. One of the chief features of the new Act is the discouragement given to the borrowing of small amounts by making all bills for sums under £3O absolutely void. Another very important point is that the holler of a bill of sale will be deprived of the preference which was given to him by the Act of 1878 over the ordinary creditors of a trader who becomes bankrupt. In cases of bankruptcy the debtor’s goods will in general be distributed among the creditors instead of being a good security for the debt of one to whom a bill of sale has given. For the Act repeals the innovstion of the statute of 1878, which says that chattels comprised in a bill of sale “ shall not be deemed to be in the possession, order, or disposition of the granter . . . within the meaning of
the Bankruptcy Act.” Another thing against which a bill of sale will afford no, protection will be the recovery of taxes and rates. Then again it. will, be necessary to set forth in a bill of sale an inventory of all the personal chattels in it; for it will be, void except as against the grantor, in respect of chattels not so specifically described. Moreover, it will be similarly void as regards pro. perty acquired after the execution of the bill, except that growing crops may be affected by a bill where they are actually growing at the time of execution, and also fixtures, plant, or trade machinery that are substituted for ethers of the same kind. The Act sets forth the five classes of reasons which alone will make property liable to be seized under a bill of sale. They are (1) if the debtor make default in payment at the proper time of the sum borrowed, or in the performance of any agreement that is contained in the bill and is necessary for maintaining the security ; (2) if be becomes a bankrupt or suffer the goods to be distrained for rent, rates or taxes; (3) if he fraudulently remove the goods from the premises ; (4) if he fail, without reasonable excuse, to produce upon demand of the lender, the last receipt for rent, rates, and taxes; and (5) if execution be levied against the goods of the debtor under a judgment of law. When property is seized under a bill of sale,lit is not to be removed or sold until after the expiration of five days, and during that time s Judge, if he is satisfied that by paymen t of money or otherwise the. cause of the seizure no longer exists, may, on the application of the debtor, restrain the removal or sale, or make any other that seems just.
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South Canterbury Times, Issue 3021, 2 December 1882, Page 2
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477BILLS OF SALE. South Canterbury Times, Issue 3021, 2 December 1882, Page 2
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