, 1867-07-19
LAWS OF THE UNITED STATES,
Passed at the Second Sesson of the Thirty
Ninth Congress.

GcoSrIUED.
PREFERENCES AND FRAUDULEST CoNvEYANcEs DE-
cLARED VOID.
Sec. 35. And be it further enacted That if any
person, being insolvent, or in contemplation of
Insolvency, within four months before the filing
of the petition by or against him, with view to
give q preference to any creditor or person hav-
ing a claim against him, or who is under any
liability for him, procures any part of his prop
erty to be attached, sequestered, or seized on
execution, or makes any payment, pledge, assign
ment, transfer, or conveyance of any part OF bis
property either directly or indirectly, absolutely
or conditionally, the person receiving such pay
rent, pledge, assignment, transfer, or convey
ance, or to be benefited thereby, or by such at>
tacnment having reasonable cause to believe
that such person is insolvent, and that such
attachment, payment, pledge, assignment, or
conveyance is made in fraud of the provisions
OF this act, the same shall be void, and the as
signee may recover the property, or the value
OF it, from the person so receiving it, or so to
he benefited and if any person being insolvent,
or in contemplation of insolvency or bankrupt
cy, within six months before the filing of the
petition by or against him, makes any payment,
sale, assignment, transfer, conveyance, or other
conveyance or other disposition of any part of
his property to any person who then has reas-
enable cause to believe him to be insolvent, or
to be acting in contemplation of insolvency, and
that such payment, sale, assignment, transfer,
or other conveyance is made with o view TO
prevent his property from coming to his assignee
in bankruptcy, or to prevent the same from
being distributed under this act, or to defeat
the object of, or in aLy way impair, hinder, im>
pede, or delay the operation and effect of, or to
evade any of the provisions of this act, the sale,
assignment transfer, conveyance shall be
void and the assignee may recover the property
or the value thereof, as assets of the bankrupt
And if such sale, assignment, transfer, or cons
veyauce is not made in the usual and ordinary
course of business of the debtor, the fact shall
be prima facie evidence of fraud. Any contract,
covenant or security made or given by bank
rupt or other person with, or in trust for, any
creditor, for securing the payment fany money
as consideration for or with intent to induce
the creditor to forbear opposing the application
for discharge of the bankrupt, shall be void;
aud if any creditor shall obtain any sum of
money or other goods, chattles, or security from
any person as an inducement for forbearng to
oppose, or cousentng to such application for
discharge, every creditor so offending shall for
felt all right TO any share or dividend in the
estate OF the bankrupt, and shall also forfeit
double the value or amount of such money,
goods, chattels or security so obtained to be
recovered by the assignee for the benefit of the
estate.
BANKRUPTCY OF PARTNERSHIPS AND CORPORATIONS
OeC' %. ma Oe IL JuTtHeT eHucIcu, mat Wlere
two or more persons who are partners in trade
shall be adjudged bankrupt, either on the petit
tion of such partners, or any one of them, or on
toe petition of any creditor of the partners q
warrant shall issue in the manner provided by
this act, upon which all the joint stock and
property of the copartnership, and also all the
separate estate of each of the partners, shall be
taken, excepting such parts thereof as are here,
inbefore excepted, and all the creditors of the
hn of oh
partner, shall be allowed to prove their resoec>
tive debts and the assignee shall be chosen by
the creditors of the company, and shall alec
keep separate accounts of the joint stock or
property of the copartnership and of the separate
estate of each member theof and after deduct
ing out of the whole amount received by such
assignee the whole of the expenses and disburse,
ments, the net proceeds of the joint stock shall
be appropriated to pay the creditors of the CO.
partnership, and the net proceeds of the separate
estate of each partner shall be appropriated to
pay his separate creditors; and if there shall be
any balance Of the separate estate of any part
ner, after the payment of his separate debts
such balance shall be added to the Joint stock
for the payment of the joint creditors and if
there shall be any balance of the joint stock
after payment Of the joint debts, such balance
shall be divided and appropriated to and among
the separate estates of the several partners ac-
cording to their respective right and interest
therein, and as it would have been if the part
nership had been dissolved without any bank
ruptcy; and the sum so appropriated to the
separate estate of each partner shall be applied
70 the payment of his separate debts and the
certificate Of discharge shall be granted or re-
fused to each partner as the same would or
ought to be if the proceedings had been against
him alone under this act and in all other res
poets the proceedings against partners shall be
conducted in the like manner as if they had
been commenced and prosecuted against one
person alone. If such copartners reside in
different districts, that court in which the pc
titon is first filed shall retain exclusive juris>
diction over the case.
Sec. 81. And be IL further enacted, That the
provisions of this act shall apply to all moueyed
business or commercial corporations and Joint
stock companies, and that upon the petition OF
any officer of any such corporation or company
duly authorized by a vote of majority of the
corporators at any legal meeting called for the
purpose or upon the petition of any creditor or
creditors Of such corporation or company, made
and presented in the manner hereinafter provided
in respect to debtors, the like proceedings shall
be had and taken as are hereinafter provided
in the case of debtors; and all the provisions OF
this act which apply TO the debtor, or set forth
his duties in regard to furnishing schedules and
inventories, executing papers, submitting to ex-
aminatons, disclosing, making over, secreting,
eoncealing, conveying, assigning, or paying
away his money or property, shall in like man,
nsr aud with like force, effect, and penalties
to each and every officer of such corporation or
company in relation to the same matters con.
corning the corporation or company, and the
money or property thereof All payments. con.
veyAnees, and assignments declared fraudulent
and void by this act when made 6y a debtor
shall in like manner, aud to the like extent. and
with like remedies, be fraudulent and void when
made by corporation or company. No allow.
anee or discharge shall be granted to anv cor.
Poration or joint stock company, or to any per.
sou or officer or member thereof: &s5rilsi that
whenever any corporation by proceedings under
this act shall be declared bankrupt, all It's prom.
erty aud assets shall be distributed to the cred
ltors OF such corporations in the manner pro,
lded 10 this act in respect to natural persons.
OF DATES AND DEPOSITS
Sec. 80. And be IL further enacted, That the
ming Of petition for adjudication in bankrupt.
ey, either by debtor in his own behalf or by
any creditor against debtor, upon which an
order may be issued by the court, or by a regis
YER, in the manner provided in section four.
shall be deemed and taken to be the commence
ment oi proceedings in bankruptcy under tbi,
teti me proceedings in all cases Of baukruptcv