Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1867-03-27

slgnee refusing or unrcasOnably neglectlng
to execute an instrument when lawfully re-
quired by the court. or disobeying lawful
order or decree Of the court in the premises,
may be punished as for a contempt of court.
OF DEBTS AND PROOF OF CLAIMS.
SEC. 49, And be 1t further enacted, That all
debts due and payable from the bankrupt at
the time of the adjudication of bankruptcy,
and all debts then existing but not payable
until future day, a rebate of interest being
made when no interest is payable by the terms
of contract, may be proved against the estate
of the bankrupt. All demands against the
bankrupt for or on account of any goods or
chattels wrongfully taken, converted, 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. If
the bankrupt shall be bound as drawer, in
dorser, surty, bail, or guarantor upon any
bill, bond, note, or any other speciality or
contract or for any debt of another person,
and his liability shall not have become abso-
lutte until after the adjudiction of bankruptcy,
the creditor may prove the same after such
liability shall have become fixed, and before
the final dividend shall have been declared.
In all cases of contingent debts and contingent
liabilities contracted by the bankrupt, and
not herein otherwise provided for, the credit
or may make claim therefor, anu have his
claim allowed, with the right to share in the
dividends, if the contingency shall happen
before the order for the final dividend or he
may at any time apply to the court to have
the present value of the debt or liability
certained and liquidated, which shall then be
done in such manner the court shall order,
and he shall be allowed to prove for the
amount SO ascertained. Any person liable
as bail, surety, guarantor, or otherwise for
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 if he shall
have proved the same, although such pay
ment shall have been made after the proceed
ings in bankruptcy were commenced. And
any person 80 liable for the bankrupt, and
who has not paid the whole of said debt, but
is still liable for the same or any part thereof,
may, if the creditor shall fail or omit to prove
such debt, prove the same either In the name
of the creditor or otherwise, as may be pro-
vided by the rules and subject to such regu-
lations and limitations as may be established
by such rules Where the bankrupt is liable
to paw rent, or other debts falling due at
fixed and stated periods, the creditor may
prove for q proportion ate part thereof up to
the time of the bankruptcy, as if the same
grew, due from day to day, and not at such
fixed and stated periods. If any bankrupt
ing out of any contract or promise, OF on ac-
count of any goods or chattels wrongfully
taken, converted or withheld, the court NAV
cause such damages to be assessed in such
mode as it may deem best, and the sum 50 as
sessed may be proved against the estate. No
debts other than those above specified shall
be proved or allowed against the estate
SEC. 20. And be 1t further enacted, That,
in all cases of mutual debts or mutual cred
its between the parties, the account between
them shall be stated. and one debt set off
against the other, and the balance only shall
be allowed or paid, but no set-Cf shall be
allowed of claim in its nature not provable
against the estate Prorlded. That no sct-otf
shall be allowed in favor of any debtor TO the
+ bankrupt of a claim purchased by or trans
ferred 10 him after the filing Of the petition.
/ When creditor has a mortgage or pledge OF
real or personal property of the bankrupt, or
u lien thereon for securing the payment of q
debt owing to him from the bankrupt,
/ he shall be admitted creditor only for
the balance Of the debt after deducting the
value of such property, TO be ascertalned by
agreement between him and the assignee, or
/ by sale thereof. TO be made in such man
ner as the court shall direct: the creditor
NAV release or convey his claims to the as
signee upon such property. and be admitted
To prove his whole debt. If the value of the
property exceeds the sum for which IT Is SO
held as security. the assignee may release to
the creditor the bankrupt's right of redemp-
tion therein on receiving such excess ; or ne
NAV sell the property subject 10 the claims OF
the creditor thereon; and in either case the
assignee and creditor respectively, shall exc
cute all deeds and writings necessary or prop
er TO consummatc the transaction. If the
property is not sold or released and delivered
up the creditor shall not be allowed to prove
any part OF his debt.
SEC. 2l And be II further enacted, That
no creditor proving his debt or claim shal
be allowed to maintain any suit at law or IN
equity therefor against the bankrupt, but
shall be deemed to have waived all right o.
action and suit against the bankrupt, and all
proceedings already commenced, or unsatis-
fed judgments already obtained thereon
shall be deemed to be discharged and surren
dered thereby and no creditor whose deb1
is provnbe under this =, We
to prosecute to final Judgment any sui,
at law or in equity therefor against the bank
rupt, until the question of the debtor dis,
charge shall have been determined and any
such suit or proceedings shall, upon the ap-
plication of the bankrupt, be stayed to
await the determination of the court IN bank
ruptcv on the question OF the discharge
provided there be no unreasonable delay on
obtain his discharge, and provided, also, thai
if the amount due the creditor is in dispute
:, the suit. bv leave of the court in bankrupt
cy, may proceed to judgment, for the pur
pose of asccrtaining the amount due, which
amount may be proved in bankruptcy, bu
execution shall be stayed as aforesaid. l
any bankrupt shall, at the time of adjudica
Z. ton, be liable upon any bill of exchange
promissory note, or other obligation in res
pect of distinct contracts as a member of tw
or more firms carrying on separate and dis
tinct trades, and having distinct estates t
u be wound up in bankruptcy, or as sol
: trader and also as a member of n firm, tn
z circumstance that such firms are in whole @
n in part composed of the same individuals, O
; that the sole contractor is also one of tn
! Joint contractors, shall not prevent proof an
: receipt of dividend in respect OF such dl'
e tinct contracts against the estates respective
e ly liable upon such contracts.
> SEC D. And be 1t further enacted, That
:, proofs of debts against the estate of tn
l. bankrupt, by or in behalf of creditors reslt
N ing within the judicial district where tt
! proceedings in bankruptcy are pending, sha
n bc made before one of the registers OF tn
: court in said district, and by or in behalf
II nonresident debtors before any register
n bankruptcy in the judicial district whel
:, such creditors, or either of them, reside. {
IL before anv commissioner of the circuit cou
b authorized to administer oaths in any di
r trict. To entitle claimant against the e
rt tate of a bankrupt to have his demar
ne allowed. it must be verified by dpositic
or in writing on oath or solemn affirmation b
'r fore the proper register or commissions
= setting forth the demand, the considerable
oi thereof whether any and what securities a
= held therefor, and whether any and VIII
l. kooY,