The New York herald., 1867-03-05

and delivered up the creditor shall not allowed 70
SIC. 2l. Ana be t further enacted That creditor
proving his debt clam shall be allowed to maintain
any SUIT at law in equity therefor against the bank
rupt but shall be deemed to have waived all right OF ac
ton and suit against the bankrupt and all proceedings
already commenced unsatsfed judgments already oo-
tanned thereon, shall be deemed to be discharged ana
surrendered thereby; and no creditor whose DEBT IS
proveable under this shall be allowed TO prosecute 10
nnal Judgment any suit at law or In equity ihereIor
against the bankrupt until the question OF the deotor
discharge shall have been determined and any such suit
or proceedings SHALL upon the application Oh the oank
rupt be stayed to await the Of the Court
In BANKRUPTCY on the question the discharge provided
there be no delay on the part oil the oan
rupt In endeavorng to obtain his discharge ana pro-
vided also, that II the amount due the creditor Is IN
dispute the suit by leave OF the Court In Bankruptcy
may proceed TO judgment for the purpose OF ascertain
but execution shall be stayed a. afore-
said II any bankrupt shall at the time OF adjudi-
% liable any ohsaon p in respsS
Of distinct contracts as q member OF two or
more hrms carrying separate and distinct trades and
having distinct estates to be wound up IN bankruptcy or
sole trader and also as member OF firm, the CIR
cumstance that such firms In whole or In part COM
posed Of the same individuals or that the sole contractor
also one OF the joint contractors shall not prevent
proof and receipt OF dividend respect Of such distinct
contracts against the estates respectively liable upon
such contracs
SEC % And be IT further enacted That all proofs Of
debts against the estate Of the bankrupt by or In behalf
creditors residing within the judca, district shs Iness
made before OF the registers OF the court in said dis
rct and by behalf OF nonresident debtors before
register in bankruptcy In the Judicial district where
such creditors either OF them reside or before any
Commissioner Of the Circuit Court authorized admins
oaths in any district To entite claimant against
the estate OF bankrupt TO have his demand allowed,
II must be verified by deposition in writing oath
solemn affirmation before the proper register or
commissioner setting forth the demand, the consd-
Grafton thereof whether any and what securities
held therefor, and whether any and what payments
Justly due from the bankrupt the CLAIMANT that the
cleant has not has other person. for his use.
received security satisfaction whatever other than
by him forth that the claim procured for
the purpose Of influencing the proceedings under this
act and that no bargain agreement expressed or inn
Piled has been made entered into by or on behalf OF
such creditor to SELL transfer or dispose Of the said
claim, any part thereof, against such bankrupt or
take or receive directly indirectly any money, prop
creditor for assignee, or any action on the part or
such creditor or any other person In the proceed
ings under this act, Is or shall be n any way ar
fected Influenced controlled, and claim shall be
allowed unless all the statements forth in such depo
shall appear to be true. Such oath or solemn af
frmation shall be made BY the claimant tesfying OF
his own knowledge unless he is absent from the United
prevented by other good cause from tes
fying in which the demand be verified in like
manner by attorney authorized AGENT OF the COM
panant tostifyng to the best Of his knowledge intor
nation and belief, and setting forth his mans
Of knowledge; or II in foreign country, the
oath of the creditor may be taken before any
minister consul or vice consul of the United
States. the Court may, II 1t shall see fit require or
further pertinent evidence either for or against
the admission OF the claim Corporations may verify their
dent cashier or treasurer II the proof satisfactory
the Register Commissioner il shall be signed by the
deponenr and delivered sent by mail TO the assignee
who shall examine the same and compare II with the
books and OF the bankrupt and shalt register
book 10 be kept by HIM for that purpose the names
of creditors who have proved their claims in the
order in which such proof received stating the time Of
receipt Of such proof and the amount and nature OF the
debts which books shall be open the inspection Of all
the creditors The Court may, the application Of the
assignee OF any CREDITOR or Of the bankrupt or With
out any application examine upon oath the bankrupt or
dariu vv,hO basp pnadQ 0f
aud may any person capable OF giving evidence
concerning such proof or concerning the debt sought to
proved and shall reject ali claims not duly proved
where the proof shows the claim to be founded in fraud
ilegalty or mistake.
SIC. g. And be It further enacted That when claim
and the Judge entertans doubts Of It's validity or Of the
right OF the creditor TO it. and Of opinion that
such validity right ought to be investigated by the as
sgnee he may postpone the proof Of the claim until the
assignee chosen Any person who, after the approval
sS "a wss %
given by the debtor contrary to any provision OF this
act, shall prove the debt claim on account Of
which the preference made given, shall he
receive any dividend thcrerom until he shall first have
surrendered the assignee all property, money benefit
The Cour. Shall allow ali debts duly proved and shall
list thereof TO be made and certified by ono Of
the registers; and any creditor may act at All mcetngs
SEC I And be it further enacted, that supposed
creditor who takes appeal to the Circuit Court from
the decision Of the District Court rejecting his claim, In
whole or in part shall upon entering his appeal in the
meOs in writing % his claim M setting % forth the same SUBJ
stantiay declaration for the Of action
at law and the assignee shall plead thereto in
had in the pleadngs, trial and determination Of the
cause, In action at law commenced and prosecuted
except that no execution shall be awarded agains.
assignee for the amount Of debt found due to the
creditor. The Anal Judgment Of the court shall be con-
elusive and the list Of debts shall necessary be al
tered to conform thereto. me party ang in the
suit shall be entitled against the adverse party
TO be taxed and recovered In law II recovered
against the assignee they shall be allowed out Of the
estate bill OF exchange, promssory note, or other
instrument used in evidence upon the proof q claim:
be delivered by the register or clerk having the custody
thereof to the person who used It, upon his filing copy
endorse upon IL the OF the party against whose
estate has been proved and the date and amount Of
dividend declared thereon
OF PROPERTY PERlsHABLE AND IN DISPUTE.
Sec Is. And be IL further enacted, That when II ap
pears the satisfaction Of the court that the estate Of
the debtor any part thereof s Of peshabe nature
or liable 10 deterorate In value the court order the
same to be sold in such may be deemed most
expedient under the direction OF the register as
siguee as the case may be- who shall hold the funds
ceved In place OF the estate disposed of aud whenever
appears to the satisfaction OF the court that the title to
any portion OF estate, real or personal which has
come possession Of the assignee or which claimed
by him. s In dispute. the Court may, upon the petition
or assignee and after such notice 70 the claimant his
agent or attorney as the court shall deem reasonable
order TO be sod under the direction OF the assignee
who shall hold the funds received 10 place Of the estate
disposed of and the proceeds Of the sale shall be
sdered the Of the value Of the property in
sut or controversy between the parties In any courts
But this provision shall prevent the recovery Of the
property from the possession OF the assignee by any
proper action commenced u any time before the court
orders the sale.
EXAMINATION OF BANKRUPrs
SBc. 26. And be II further enacted, That the court
may the application Of the assignee in bankruptcy
or OF any creditor without any application at all
times require the bankrupt upon reasonable notice. 10
attend and submit TO an examination. on OATH upon
all matters relating TO the disposal or condition Of his
property his trade and dealings with Others and his
accounts concerning the same to oil debts de TO or
claimed from him. 70 all other matters concerning
his property and estate and the due settlement thereof
according 10 law. which examination shall be in writing,
and shall be signed by the bankrupt and filed with the
other proceedings; and the court may, In like Manner
require the aendancc Of any other person Witness
and II such person shall fail to attend being
moned thereto the may compel his attendance by
warrant directed TO the Marshal, commanding him TO
arrest such person and bring him forthwith before the
court or before register in bankruptcy, for examin
alton as such witness. II the bankrupt is i'm
prisoned, absent or disabled from attendance, the
court may order him 70 be produced BY the
jalor, any officer In whose custody he may be, or