Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-03-12


other money in his possession; aad shalt, as far
as practicable. keep all goods aud effects be-
longing to the estate separate and apart from
all other goods In his possession, or desig mated
by appropriate marks, so that they may be
easily and clearly disfing uished, and may not
be exposed or liable TO be taken rs his property
or for the payment OF his debts. When il
sppears that the distribution OF the estate az
BE- delayed by litigation or other cause, the
court may direct that the emporary in vest
ment of the money belonging to su Gu estate in
securities 10 he approved by the Judge or a
r. gister OF eaid court, or may authorize the
same 10 be deposited in any convenient bank
upon such interest, not exceeding the legal
rate. as the bank may contract with the assignee
to pay thereon He shall give written notice
10 all known creditors, by mail or other wise,
OF all dividends, and such notice Of meetings.,
after the hrst, as may be ordered by the coart.
He shall be aiio wed. and may retain out OF
money In his hands, all the necessary dis burse.
ments made by him in the discharge OF his
duty, and q reasonable compensation for his
services, in the discretion OF the court He
may, under the direction Of the court. submit
any controversy arising in the settlement of
demands against the estate, or of debts due to
IL, to the determination of arbitrators, to be
chosen by him and the other party to the con-
uoversy, and may, under such direction, COM
pound and settle any such controversy. by
agreement with the other party, as he thinks
proper and most for the interest Of the cred
ItOrs. r u..
SEC. IS. And be it further enacted, That the
court, after due notice and hearing, may re-
move an assignee for any cause which, in the
Judgment Of the court, renders such removal
necessary or expedient At meeting called
by order OF the court in its discretion for the
purpose, or which shall be called upon the ap-
pitation of a majority of the creditors IN mum
Der and value, the cred ors NAV. with consent
OF lthe] court, remove any assignee by such a
vote as IS herein6efore provided for the choice
OF assignee. An assignee may, with the con-
sent of the judge, resign his trust and be dis
charged therefrom. Vacancies caused by
death or otherwise in tn ONCE of assignee NAV
be filled by appoin tment of the court or at its
discretion by an election by the creditors. IN
the manner herein before provided, at a regu-
lar meeting, or at q meeting called for the pur-
pose, with such notice thereof In writing TO
all known creditors, and by such person as the
co urt shall direct. The resignation or re-
movai OF an assignee shall in no way release
him from performing all things req uisite on
his part for the proper closing up of hIs trust
and the Transmission thereof to his successors
nor shall it affect the liability of the priacipal
or surety on the bond given by the assignee.
When, by death or other wise, the number of
assignees is redu ced, the estate of the debtor
not lawfully disposed OF shall vest in the re-
naming assignee or assignees, and the persons
selected to NIL vacancies, Il any, with the
same powers and duties relative thereto as if
they were originally chosen. Any former as.
signee his executors or administrators. upon
request, and at the expense of the estate, shall
m axe and execute to the new assignee all
deeds, convaJances and assurances, and do
all otner lawful acts requisite TO enable him to
recover and receive all the estate. And the
court may make all orders which it may deem
e1pedient TO secure the proper fulflment OF
the duties of any former assignee, and the
rights and interests Of all persons in terested in
the estate Noperson who has received any
preference contrary to the provisions of this act
sball vote for or be eligi bic as assignee; but no
title TO property, real or personal, sold, trans
ferred, or conveyed by an assignee, shall be
affected or impaired by reason of his ineligi-
bIhty. An assignee refusing or unreasonable
negiecting to execute an instrument when
lawfully required by the court, or disobeyiu
a lawful oroer or decree of the court in the
premises may be punished as for contempt
Of court
OF DEBTS AND PROOF OF CLAIMS.
SEC. 10. ind be ii further enacted, That all
debts due ana payable from the bankrupt at
the time OF the adjudica alton of bankruptcy,
and all debts then existing but not payable
until future day, q rebate Of interest being
made when no interest is payable by the terms
OF contract, may be proved against the estate
OF the ban krupt All demands against the
bankrupt FOR or on account Of any goods or
cbattels wrongfully taken, con verted, or with
held by him may be proved and allowed as
debts to the amount OF the value of the prop
erty so taken or withheld, with interest III
the bankrupt shall be bound as drawer en-.
doIser, surety. bail, or guarantor upon any
OIL, bond, note, or any other specially or con.
tract, or for any debt Of another person. and
his liability shall not have become absolute
until after the adjudication of bankruptcy, the
creditor may prove the same after such liabil.
NY snail have become fixed, and before the
hnal dividend shall have been declared. In
all cases OF contingent debts and contingent
liabilities contracted by the bankrupt, and not
herein otherwise provided Tor, tue creditor
may make claim therefor, and have his clam
allowed, with the right 10 share in the diyi-
d-nds, II the contingency shall happen efors
the order for the final dividend; or ne may at
any Tune apply to the court to have the pres
ent valae OF the debt or liability ascertaIned
and hquidated, which shall then be done
IN such manner as the court shall order,
and De shall be allowed 10 prove for the
amount so ascertained. Any person liable as
bail, surety, guarantor, or other wise tor the
bankrupt, who shall have paid the debt, or
any part thereof, in discharge Of the whole
shall be entitled TO prove such debt or to stand
In the place OF the creditor II he shall have
proved the same, although such payments
shall have been made after the proceedings In
bankruptcy were commenced. And any per.
son so liable for the bankrupt, and who has
not paid the whole OF said debt bat is still
liable for the same or any part thereof, may, II
the creditor shall fail or omit to prove such
debt, prove the same either In the name of the
creditor or other wise, as may be provided by
the rules. and subject TO such regulations and
rn.s Wse as m, may be established by snch
rent or other debt falling due At fixed and
stated periods, the creditor may prove for a
proportonate part thereof mp to the time Of
10 day, and not at such fixed and stated
periods. II any bankrupt shall be liable for
unlfq Undated damages arising out Of any con.
chattels wrongfully taken, con verted or with.
held, the court may cause such damages to be
assessed n such mode rs II may deem best and
the sum so assessed may be proved against the
estate. No debts other than those aso We speci-
ned shall be proved or allowed against the
estate.
SIC. 20. And be IL further enacted. That, in all
cases OF mutual deots mutual credits be-
tween the parties, the account between them
shall be stated, and one debt SET of against the
other, and the balance only shall be allowed
or paid. but no set. OF shall be allowed of a
claim in its nature not proya able against the es.
tate: Prorided, That no set on shall be aIlo wed
in favor Of any debtor 10 the bankrupt of a
claim purchased by or ansferred TO him after
the Ming of the petition. When a creditor has
a mortgage or pledge OF real or personal prop.
erty of the bankrupt, or a lien thereon for Sc
curing the payment Of a debt owing TO him
from the bankrupt. he shall be admitted as a
creditor only for the balance OF the debt after
deducting the value OF such property to be as.
certsined by agreement between HIM and the
assignee, or by a sale thereof, to be made in
such manner as the court shall direct; or the
creditor may release Or convey his claim to The
assignee upon snch property, and De admitted
10 prove his whole debt If the value OF the
property exceeds the sum for which IL is so
held as security, the assignee may release TO
the creditor the bankrupt's right Of REDEEM ption
therein on receiving such excess; or he NAV
sell the property, bject to the claim of the
creditor thereon: and in either case tho a.