INSOLVENT DEBTORS' RELIEF ACT FOR NEW ZEALAND.

Colonist, Volume III, Issue 283, 6 July 1860, Page 4

INSOLVENT DEBTORS' RELIEF ACT FOR NEW ZEALAND.

This bill is entitled "An Act for the relief, of Insolvent Debtors," and the present Ordinance for the relief of persons imprisoned for debt is by it repealed. Under the term property of an insolvent, is included all his real and" personal estate and. effects, and all the future estate, right, title,' or interest which may come to him, except1 wearing apparel, bedding, and other necessaries of his family, and the working .tools and- implements of the petitioner, not exceeding in the whole the value of ,£2O, which, however, are to be fully and truly described in bis schedule. The Supreme Court takes cognizance of debts, exceeding £300, and the District Court of debts under that amount. Any person having been a resident in the colony for six months may present to the Court a petition for relief, pursuant to the provisions of this Act. Every such petition to be in a prescribed form, and to have annexed thereto a schedule setting forth a full and true account of-the debts owing by the petitioner, and. of all claims upon him, with the names and residencies, of- his creditors and claimants, and the dates of contracting such debts or claims severally, and the security (if any) given or alleged to be given, for the same respectively, and 'also'the nature aod amount of the property of the petitioner,, and of the debts owing to him, with the name and residencies of his debtors and securi iss. Every petition set forth anj proposition for the payment into the whole or in part of his debts, or of any composition in discharge thereof. Every petitioner and schedule to be verified by affidavit. After the filing of the petition, the Registrar to give notice to the creditors, and appoiut a sitting day of the' Court for the first examination of the petitioner, The Court may adjourn "such sitting'aud may allow petitioner to amend his schedule and correct any error therein. Upon the filing of any petition all the estate and effects of the petitioner, including all esestates and interests by way of remainder, reversion, or expectancy, to be vested in the Registrar, as official assignee, who., is forthwith to take possession thereof. Upon the filing of the petition, the Court can issue an interim order for protection. 'Incase petitioner be in actual custody, upon obtaining such protection, lie will be entitled to his discharge from custody 'without payment of any fee to the; person in : whose- custody he shall then be, but-without prejudice to any claim of such person to b.e paid such fee by. any person liable thereto,, other (hau the petitioner, or out of the property of the petitioner .-as' shall be just; provided /; that :the petitioner give such bail for bis appearance -as the Court shall think proper; which is, how-j ever, not to prevent his arrest or detention uudcr a judge's order. : . . . .'. / At .the,first .sitting of the Court, one or two assignees,1 to be chosen by the " creditors, to be called the; trade assignees, such choice to ,be made by'the major part in uumber and value of the creditors Who may attend such sitting by 'themselves or their attorneys. The 'Court 'has power, however, to remove- any assignees , who -s'l/all appear to: be unfit for. the office.-.. Creditors ■to vote in respect to. ascertained amounts. Assignee rto sigu. undertaking',; and property .; to vest in,- official ;and trade assignee jointly.; t.;:,:■ ~: .. '■■ '. . ..-.•. ' . /if \i appears to the Court that- there is 'reasonable;ground;for believing that any pn> per'ty of the'petitioner is concealed within the colony, it can; by warrant authorise the bailiff to . seize the'sarae, and forth'ar purpose to'break : open' :aW: house; 'chamber;:1 shop, 'warehouse, idoor''trnnfi/or cliest, specificd 1 in such!warra;nt> and td^e'jjosse^ioh^^ and^all'

magistrates and constables are required *to aid and assist in the execution of such wan ant within their respective districts. ' The Court has full power to compel attendance of witnesses, to commit to prison, and there to remain without bail, any witness who shall refuse to answer to the satisfaction of the Court any lawful questions that shall ,be put to ,him. Wilful falsehood of witness to be deemed perjury, and punished accordingly. Assignee may execute power of petitioner. The latter not liable to rent or covenant, if assignee take lease. Assignees may sue and compound, and are entitled to be registered in place of any insolvent registered proprietor. Then follow a number of clauses relative to unregistered dispositions. Any interested person may by inhibition prevent any dealing with tho land by the registered proprietor to the prejudice of his interest. When two or more inhibitions are lodged with respect-to the same land or charge the parties interested thereunder shall as between .themselves have priority according to the dates at which these prohibitions are lodged, and not according to the dates of the claims in respect of which such inhibitions have been lodged. Such inhibitions may be cancelled. If any person lodges aa inhibition without reasonable cause he is liable to make to any injured party just compensation, to be recoverable in an adtion of law by the person who has sustained damage by the .person who lodged the1 inhibition. - < When in any proceeding with respect to any land under this Act, it appears to the Registrar that the land is subject to any doubtful' claims and incumbrances, he may, with the approval of the Registrar-General, accept money compensation for them, which is to be paid to the Colonial Treasurer, and the Supreme Court has,power to determine the rights and priorities of the several persons entitled to it, and to distribute the same amongst them accordingly. Any registered proprietor or other person having an interest may make copies and extracts from any register or document in the custody of the Registrar relating thereto. Certificate of state1 of title of registered proprietor to be granted by the Registrar. ' Rules and regulations for the purposes of the Act to be made by the Governor in Council, which will have the same force as if embodied therein. The Registrar-General and .Registrar of any.district to promulgate and prescribe such regulations, as may be deemed .necessary for facilitating proceedings, and tho orderly .transaction of business. .; ~.•■! Fees to be fixed by the Governor in Council, to be paid over to the Colonial Treasurer, to be deemed ordinary revenue, and subject to Surplus Revenue Act. Claimants may make claims and prove by affidavit. The Court to direct the payment of individuals amongst the creditors of the petitioner where debts are admitted in his schedule, and amongst such other creditors'as shall from time to time be placed on the said schedule, in proportion to the amount of the debts so admitted or proved; provided that .if the petitioner, creditor, or assignee,,shall object to any debt, the said objections and claims are to be examined, into by the Court whose decision will be conclusive. At. the expiration of a year any outstanding debts belonging to the insolvent's estate may be sold or assigned by the assignees, they can apply to the Court for its direction or decision on any matter relating to the estate of the petitioner. Signed copies of petition for protection from process and any proceeding in the matter thereof to be evidence. Warrants and orders of the Court are to be made under the hand of the judge thereof. . , The insolvent's schedule, which he is_ compelled to .annsx .to his petition, is a most important matter. The Court requires,—That his account shall in no case, begin later than six calendar months before the presenting of the petition ;—that if before that period, but since the commencement of his present embarrassments, any property has gone away from him:by sale, assignment, mortgage, distress, execution, or any means other than th.c ordinary course of trade, the account shall commence so as to include all such transactions ; — that money and other property which was in the possession of the. insolvent or his family, or of any other, persou for his or their benefit at, the time when be presented his petition, shall in all cases be made a specific itom or items in the account. When there are cross demands the party must be entered both as creditor and debtor, aud " set off "must be written under the amount. Real and personal estates and effects iv insolvent's possession, and all uupaid legacies due must be valued and described j and the supposed value of all real and personal es-. tates and effects in which he has; any interest in reversion, remainder, or expectancy must be stated, the truth of the whole to be verified on oath. • '■' :': ''■ '"■ '■"' ' ;;;' ''" ""' '■•''"' ;

The final- order for protection from process secures all property, estate, goods, and. chattels, bonafide acquired after .thb date, of an order, to the insolvent; but if it shall appear to the Court that the insolvent did not; make a full discovery of his estate, effects, and debts, it may resciud its final order. . .