The New York herald., 1864-12-15

II tugent debts ard contingent liabilities contracted
by the bankrupt ard not herein otherwise provided M
the creditor may ke claim therefor claim
allowed, with the right 20 share In the dividends, the
shall happen before the the final
the present or the debt liability ascertaped snd
liQu.dated, which sba then be done In such
manner As the court snal order ana ne snail DC aoTse
BILE ball. surety guarantor or otherwise for the bank
rupt who shall have paid the debt or any part thee
discharge OF the whole, shall be entitled TO prove such
debit or 70 stand IN the place u the creditor he shall
have proved the same, although such payments SHAH
commenced. where the bankrupt Is liable 70 pay rens
or other debt falling due at dxed and stated III
creditor may prove for propor.ionae part hsreo ap
from day to day. and not at such fixed and stated perl
DDS. II any bankrupt shall be liable Tor unqudatsd
damages arising out OF any contract promise, or %
account OF goods or cnattels wronguiy taken
verted or withheld, the court may suoh damagss
10 be assessed In such mode az deem best and The
sum assessed may be proved against the estate No
debts other than those above specified shall be proved
SEC 49, And be q fssrtaer enacted That In all cases
mutual debts mutual credits between the parties
the account Ssns set or AGAINST s% The
lance only shall be allowed or paid, but no set
shall be allowed OF claim in It's nature not provs
BILE against the estate. When q creditor has mort
gage pledge OF real personal property Of the bang
rupt lien thereon for securing the ment Of debt
owing him the bankrupt, he shall 90 admitted 81
creditor only for the balance OF the debit after deduct
ing tho value OF such property, 10 be ascrtained ~
agreement between him and the assignee or py sass
thereof to be made 10 such manner as tue court shsh
direct; or the creditor release his claim upon such
property and be admitted TO prove his whole debt Il the
value OF tho property exceeds for which t Is -
held security the assignee release TO the creditor
the bankrups right OF redemption therein on receiving
such excess or be may sell the property subject ~ The
claim the creditor thereon; and in either The
assignee and creditor shall execute all deeds
aud writings necessary or proper 70 oonsumma.e sns
transaction II the properly s not so sold or released
and delivered up the creditor Shall not be allowed 70
preve any part or his debt.
SEC. "a. And be tarther enacted, That no credtcs
proving his debt claim shall be allowed TO mantato
any at law Or in equity thereIor but shall be deemed
waived all right Of action and suit against the
bankrupt and all proceedings already commencsd
or upsatisfed judgments. ALI eady Obtained thereon
shall be deemed t. be discharged aud surrendered
thereby; and no creditor whose debt is provable
der this act shall be allowed 10 prosecute 10 hDs
Judgment any suit at law or in equity therefor againstth
nkrupt, until the question OF the debtors discharE
shall have been Determined and any such suit pre-
ceedug shall, upon the application OF the bankrupt
stayed 10 await the determination OF the court IN INK
rupcy the question of the discharge prov ded there
unreasonable delay the part OF The bankrupt IN o.
that the due the creditor in dispute the sui
by leave VI the court in Bankruptcy, may proceed toJud
for the purpose OF ascertaning the amount due
which amount may be proved in bankruptcy, but exec
ton snail be stayed aforesaid II any bankrupt sha
at the time OF adjudication, be liable upon AN
bill exchange, promissory nute or other obligation
respect of distinct con tracts a. member
firms carrying separate and distinct trades and hav
ing distinct estates to be wound up bankruptcy,
q sole trader and also a member OF q firm the chr
that such firms are in whole or In part com
posed the same or that the sole ntracoe
proof and receipt OF dividend in Of such distn
contracts against the estates respectively liable upon such
contracts Eatt
SEC rs and be Il further enacted That all proofs n
debts against the estate OF the bankrupt, by or Y
behalf Of vsaDS M wna 1s shs
be made before one OF the registers OF the court u ss
district and by or in behalf OF debtors before
any register IN bankruptcy in the ud districts whsrt
such creditors reside, before OF tha
circuit court authorized to administer osths in any d
trict. To eute claimant against the OF he
bankrupt his demand allowed 1t must be veri6st
by deposition iu writing on oath or solemn armatte<
before the proper register or missioner setting orh
the demand the sideraton thereof whether any and
what securities are held therefor and whether any sa
what have been made thereon that tho suuE
claimed justly due from the bankrupt TO the claimant
tnas the claimant has not nor has any other person fos
hs use. received any security satisfaction whatev
procured Tor the purpose Influencing the proceedin
this act and that bargain agreement exprs
Psa bias Usr mao. ~ q ~ q or
rups. 1 ' or to take or receive, directly Or is1i
ever whereby the vote Of such creditor Tor assigsss
or my action the part Of such creditor or say
shall be ia any way sfec ed, influenced or consfolsl
claim shall be allowed unless all the statem0eav
60, forth in such deposition shall appear TO be- true ~
oath or solemn nation shall be .de by the cIaaaI
tcstMying OF his own know ledge, unless be u ahooe1
from tho United States or prevented By some Other s
from tostying, IN which the demand usyf
be verified IN IKE manner By the attorney or auho ~
age11 the claimant tesying 70 the best Of his krw
means OF knowledge, or, 10 foreign country, the dA
OF the creditor may Oe taken before any minister co
il shall SEQ t require or receive further psrtoent u
dence either for against the admission Of the claim ~
poratons may Worthy their claims By the oath or soiaa
affirmation OF their president casher treasurer II
the proof satisfactory 20 the register or comm sso,
IL shall be signed BY the deponent and delivered or ot
by mail 10 tie assignee, who shall examine the samend
compare with tho books and accounts OF tho banks,
and shall register, in book TO be kept BY him for aas
purpose. the OF creditors rho proved bir
Il
the time OF receipt Of such prco and the amount I'D
nature Of the debts which books shall be open tehs
inspection OF all the creditors. The court may. onho
appcaion OF the Rssgnee or OF creditor, or OF %
bankrupt, or without any application, examne upon sA
the bankrupt or any person rendering or who has mde
proof OF CLAIMS, and may summon any person capab q
giving evidence concerning such proof or concernughe
debt sought to be proved aud shall reject all camssos
duly proved where the proof tho cilm TO b
founded In fraud iiiegality or mistake.
SEC 20. And 6e IL further enactcd That when clin
Is presented for proof before the election OF he
assignee, and the judge entertains doubts OF is vadty
OF the right Of the creditor TO pr've ~
aud is OF opinion that such validity o. rKhs
ought TO be Investigated by the assignee, he may
postpone the proof Of the claim until the assignee
Auy person who the approval OF tl act.
Shall have accepted any preference, having reasonable
cause TO believe that the made gwen by the
debtor contrary TO any provision OF this act shall NOS
prove the debt claim account OF which the pree
renee was made gwen shall he receive any dvk
,dend therefrom. Tho shall allow all debts duly
Proved and shall cause list thereof to be made and
certified by of the registers and any creditor mag
act at all meetings by mis- duly constituted attorney thai
same rs tnoukn personally present.
Sac II. And be fafh en1ctd, That supposed
creditor who takes appeal TO the circuit court ron
the decision OF tho district court rejecting his ca'm
whole or In part shall, upon entering his appeal W the
circuit court, file In the clerks Office thereof statement
in writing of his claim, setting orn the same, suostan
TALLY, in declaration the Of action 81
law, ana the assignee shall plead thereto IN
Ike manner and like proceedings shall thereupon be had
ia the peadiugs trial and determination OF tho cause
10 action at law commenced and prosecuted, In the
usual manner In tue courts OF the United States except
that execution shall be awarded against the
for the amount Of o debt found due 70 tho creditor
The final judgment OF the court shall DO conclusive and
the lists Of debts SHALL be altered TO COZ
form thereto. The party prevailing IN the suit shall b.
entitled TO costs against the adverse party TO be taxed
and recovered as Ia suits At II recovered against ths
assignee. they shall bo allowed out OF the estate. bill
OF exchange promssory note other instrument used
in evidence upon the proof claim. and court
deposited in the clerks Office may be delivered by
register 10 the who used IT, upon his ing copy
thereof atested by the clerk OF the court who shall
dorse u the Of the party against whose esta
has been proved and the date and any dvi
dend declared thereon.
oy PROPERTY rrRnHABR AND IN DISPUTE