Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-09-06
WATClfMAN g. STATE JOURNAL.
SPIN ADVANCE, $3.50 AT THE END OF THE YEAR.
BY A UTu RITY.
lPnnfIc..Nn. 81
AN ACT TO establish n uniform system of Bank
49,. II

NV nv 10 cStNDIlSll u unUOTHl system OF Dunk-
ruptcy throughout the United States.
BE IL endciedby the Senate and House OF Repre-
Senidttves of the United States of .america in Con.
greSs assembled That there be, and hereby is, es-
tablished throughout The United States n Uniform
system of bankruptcy as follows: All persons
whatsoever, residing in any State, District, or Ter
rltory Of the United States, owing debts, which
shall not have been created in consequence of II
dcfacation as public officer, or as executor, ad
mi 'lsraor. guardian, trustee, or while acting
IN any other tduciary capacity, who SHALL by petit
ton, setting forth, to the best of his knowledge
and belief list of his or their creditors their re-
speciive places of residence, and the amount due
to each, together with an accurate inventory of
his or their property, rights and credits, of every
name, kind, and description, and the location and
situation OF each and every parcel and portion
thereof, verified by oath, or, if conscientiously
scrupuous to taking an oath, by solemn affirlna
ton, apply to The proper court, as hereinafter
toned for the benefit OF this act and therein de-
clare then-eves to be unable to meet their debts
and engagements, shall be deemed bank upts
within the purview of this act, and may he so
declared accordingly 'by:a decree of such court
All persons, being merchants, or using the trade
OF merchandse, all retailers of merchandise and
all bankers, factors, brokers, underwriters or ma
rne insurers, owing debts TO the amount of not
less than two thousand dollars, shall he liable to
become bankrups within the true intent aud
meaning OF this uct, aud may, upon the petition of
one or more OF their creditors TO whom they awe
debts amounting in the whole to not less than five
hundred dollars, to the appropriate court, be so
declared accordingly, in the following cases 10
wit: whenever such person, being n merchant, or
actually using the trade, or heing retailer, of
merchandise, or being banker, factor broker, I'M
derwriter, or marine insurer, shall depart from the
State, District, or Territory of which he is an in
habltant, with intent to defraud his creditors !;
or shall conceal himself to avoid being arrested
n SIl,,U .l.,l..
TO be arrested, or his goods and chattes lands or
tenements, to be attached, dIstrained sequesered,
or taken IN execution or shall remove his goods
chattels, anu effects, or conceal them to prevent
their being levied upon, or taken in execution, or
ny other process; or make any fraudulent con-
Veyance, assignment, sale, gift other transfer of
his lands, tenemens, goods, chattels credits or
evidences OF debt: Provided, hotUeuer, That any
person. so declared bankrupt at the instance of
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 iact OF such bankruptcy or if such person
shall reside at great distance from the place of
no'nihg such court the said judge in his diScre-
non, may direct such trial by Jury TO be had in the
county OF such persons residence, in such man
ner and under such directions as the said court
may prescribe and gives and all such DEGREES
passed ny such court and not SO re-examined,
shall be deemed final aud conclusive as to the sub
Ject matter thereof.
Sec 2. find be ii further enacted That all fu-
lure payments, securities, conveyances, or trans
fers OF property, or agreements made or given by
any bankrupt IN contemplation of bankruptcy,
anu Tor the purpose of giving any creditor, endor-
SER surety, or other person any preference or pri-
orly over The general creditors of such BANKRUPT
and all other payments, securities conveyances
or transfers OF property. or agreements made or
given by such bankrupt in contcn plaon of bunk
rup'cy, TO any person or persons whatever, not he
ing bona fide creditor OF purchaser for valuable
consideration, without notice, shall de deemed ut
terly VOID, and Il fraud upon this act and The as
slgnee under the bankruptcy shall be entitled TO
claim, sue tor, recover, and receive the same ms
part OF the assets OF the bankruptcy and the per-
son making such unlawful preferences and pay
inents snail receive no discharge under the pro-
visions OF this act: Provided That all dealings
and transactions by and with any bankrupt, bona
fde made and entered into more than two months
before the petition filed against him. or by him,
snail not be invalidaed or affected by this act (:
Provided, That the other party to any such deal
1ngs or transactions had no notice of h prior nc;
OF bankruptcy, or of the intention of The bank
rupt TO take the benefit Of this act. And in case
1t shall be made to appear to the cour, in the
course of the proceedings of bankruptcy, that the
bankrupt his application being voluntary, has,
subsequent to the first day of January last or at
any DINER time, IN contemplation of the passage
oil bankrupt law, by assignments or otherwise,
gwen or secured any preference to one creditor
over another he shall not receive discharge I'M
less the same be assented to by majority in in
terest of those of his creditors who have not been
so preferred find prouidsd also, That nothing in
this act contained shall be so construed 10 annul,
destroy, or impair any lawful rights Of mar
RED women or minors, or any liens, mortga-
ges, or other securities on property, real or per
sonal, which may be valid by the laws of the
States respectively, and which are not inconsist-
en-, with the provisions Of the second and fifth
sections Of this act.
Sec. 3. And be ii further enacted That all the
property and rights of property, of every name
ana nature and whether real, personal, or mixed,
oi'eVery bankrupt, except ms hereinafter provided,
who shall by decree of the proper court he de-
clarea to be bankrupt within This net, SHALL by
mere operation oflaw, pso iaclo, from the time OF
such decree, be deemed 10 be Invested our of such
bankrupt without any other act, assignment, or
other Conveyance whatsoever; and the same shall
be vested by force of the same decree, in such as
sighee as rom time 10 time shall be appointed by
the proper court for this purpose; which power
OF appointment and removal such court may ex =
ercise al us discretion, totes quotes; e. the assig
nee so appointed shall be ,esled it'll all the rights
titles, powers, and authorities to sell, manage, and
dispose OF the same, and TO sue for and defend
the same, subject TO the orders and directions OF
such court, as fully, to all ntents and purposes us
IT the same were vested in, or might lie exercised
by, such bankrupt before or ut the time of his
bankruptcy declared as aforesaid; and all suits IN
law or equity, then pending, in which such bank
rupt is party, may be prosecuted and defended
by such assignee to their final conclusion, in the
same way, and with the same effect, as the,
might have been by such bankrupt; and no sui
commenced by or against any assignee shall be
abated by his death or removal from office, bu
the same may he prosecuted OF defended by hi.
successor in the same Office Provided however
Ihat there shall be excepted from the operation
OF me provisions of this section the necessary
household and kitchen furniture and such Other
artlc'eS anu neGessaries of such bankrupt The
sail nsSgnse sail designate and set apart, having
reference in the amount to the family condition
and circumstances of the bankrupt, but altogether
not to exceed In value, in any case, the sum o.