Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1841-09-02
LAWS OF THH UNION.
Passed at First Session Of 27M Conerr
fPUBLIc-No. 81

Bankruptcy throughout the United Stalcs.
II lie IL sn0eied by MS Senate and Homst o,
Representatives. OF The United States of .imeri.
ca m Congress assembled, That there be, and
hereby -, established throughout the United
States uniform system of bankruptcy, as
follows: All persons whatsoever, residing
IN any State, District, or Territory of the
United States, owing debts, which shall no,
have been created in consequence of de
iolcatlon as public officer, or as executor
administrator, guardian, or trustee, or while
acting IN any other fduciary capacity, who
shall, by peiNion, setting forth, ~ The best OF
his knowledge, aud belief, list of his OF
their creditors, their respective places of res
idence, aud the amount due 10 each, togeihei
with al accurate inventory of his or their
property, rights, aud credits, OF every name
kind aud description, and the location and st.
nntlon of each and every parcel and portion
thereof, verified by onih, or, If Conscientious.
ly scrnpulous ol taking all oath, hy solemn
affirmation, apply To The proper court, us hero.
mailer mentioned, for the benefit of this &c /.
and therein declare thcinsely To be unable
to meet their debts aud engagements, shall
be deemed bankrupis within the pcrview oi
this act, aud may be SO declared accordingly
ing merchants, or using the trade of merchan-
disc, all retailers OF merchandise, and all
bankers, factors, brokers, underwriters, or
marine insurers, owing debts to the amount
of not less than Two thousand dollars, shall be
llable TO become hankrup,s within the true
intent and meaning of this act, and may,
upon the petition OF one or more OF their cred .
itors, to whom they owe debts amounting in
I tla ,uh. In, n fan b,,. a
lars, to the appropriate court, be so declared
accordingly, in the following cases, to wit
whenever such person, being a merchant, or
actually using the trade of merchandise, or
being q banker, factor, bToker, undcrw ritter,
or marine insurer shall depart from the Saie,
District or Territory of which he is an inhab-
liant, with intent to deiraud his creditors or
shall conceal himself TO avoid being arrested;
or shall willingly or iraudulcntly procure HIM
self to be arrested, or his goods aud chattcs,
lands, or tcnements, TO be attached, distrain-
cd, seguestercd, or taken in execution, or re.
move his goods, chatIels and effects, or con
ceol them to prevent their bcin. levied upon,
or ,ukcn in execution, or by other process or
make any fraudulent convey nncc ,assi Q nnicn mt,
sale, gift, or other transfer Of his lands, tenc.
ments, goods or chattcs, credits,or evidences
Of debt; Prapided, ho,pepsr That any person
so declared bankrupt nt the instance al u
creditor, may, at his election, by petition to
such court within ten days after its decree,
be entitled to trial by jury before such
court. To ascertain the fact of such bankrupt
cy; or if such person shall reside at n great
distance from the place of holding such court,
the said Judge, in his discretion, may direct
such trial by jury to be had in thscounty of
such persnn's residence, in such manner and
under such directions as the said court may
prescribe and give and all such DEGREES
passed by such oourt,and not so ro-exainned,
shall be deemed final and conclusive as to
the subject, matter thereof
SIC. 2. .9nd be II further enucird, That all
future payments, securities. conveyances, or
transfers Of property, or agreements made or
given by any bankrupt in contemplation OF
bankruptcy, and for the purpose Of giving
any creditor, endorser, surety, or other per-
son any preference or priority over the gen
cral creditors at such bankrupt; and all other
payments, securities, convcyances, or trans.
tcrs Of property, or agreements made or gwen
by such bankrupt IN contemplation of bank
rupicy, to any person or persons Whatever,
not being n bona fde creditor or purchaser
for a valuable consideration, without notice,
shall be deemed utterly vold,and fraud upon
this act, and The assignee under the bank
ruptcy shnll be entitled To claim, sue for, re-
cover, aud receive the same as part OF the
assets of the bankruptcy; and the person
making such unlawful preferences aud pay
Inents shall receive no discharge under The
provisions OF this act: Provided, That all
dealings and transactions by and with any
bankrupt, bona fdc made and entered into
more than two months before the petition
fled against him, or by him, shnll not be in.
validated or affected by this act: Prormed,
That the other party to any such dealings or
transactions iiad no notice Of a prior act OF
bankruptcy, or Of the intention OF the bank
rupt 10 take the benefit OF this act. Aud IN
case it shal! be made to appear to the court,
in the course of the proceedings IN bankrupt
cy, that the bankrupt, his application beng
voluntary, has, subsequent To the first dny OF
January last. or al any other tlmo. IN conlem-
patton Of the passage oia bankrupt law, 10y
assignments or otherwise, gwen or secured
any preference TO one creditor over another,
he shall not receive a discharge unless the
snn,c be assenlcd to by majority IN interest
of those of his creditors who hnve not been
so preferred: .ind prorifcd, also, That no.
thing IN this act contained shall be construed
TO annul, destroy, or impair any lawful rights
OF married women or minors, or any liens,
mortgages, or other securities OH property,
roal or personal, which may be valid with The
laws of the States respectively, and which
are not inconsistent with the provisions Of
the second aud filh sections Of this act.
Src. g. .1ud he Il further enacted, That all
the property aud rights of property, OF every
name aud nature. aud whether rcal, personal,
or mixed, of every bankrupt, except MS Is
hereinafter provided, who shall by docrcc
Of the proper cour, hc declared To- he bank
rup, within this act, shall, by mere operation
oflaw, Ipso facto, from tho time of such de-
cree, be deemed To be drvcsted out OF such
bankrupt, without any other act, assignment,
or other conveyance whatsoever and the
same shall be ,osted, BY force Of tho same
decree, in such assignee os from time to time
shall be appointed by the proper court hr
this purpose which power Of appointment
md removal such court may exercise nj Ne
totes QUOTES; und the assignee
90 appointed shall be vested with the rights,
,,,i.. n,vers aud autlnftitpe In sell utoDago