Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1874-09-18
NO. 3S.

SEC. 10. That section forty of said act
be amended by adding at tho end thereof
| the following words: "And IL, on the re-
turn-lay Of the order TO show cause as A.
ioresaid, the court shall be satisfied that
| the requirement of section thlrty-nine of
said act as to the number and amount of
| petitioning creditors has been complied
with, or il, within the time provided for
in section thirty OF this act, creditors
sufficient in number and amount shall sign
! such petition so as to make total of one
fourth in number of the creditors and one
| third in the amount of the provablo debts
| against the bankrupt, as provided in said
section, the court shall so adiudge, which
judgment shall be final otherwise it shall
dismiss the proceedings, and, in cases here
after commenced, with COSTS"
SEC. IA. That section fUrty-one of said
| act be amended as follows: After the word
bankruptcy" in line eight, strike out all
of said section and insert the words, "Or,
at the election of the debtor, the court may
| in its discretion, award a venre facias to
the marshal of the district, returnable with
in ten days before him for the trial of the
facts set forth in the petition, at which time
the trial shall he had, unless adjourned for
cause. And unless, upon such hearing or
| trial 1t shall appear to the satisfaction of
said court, or Of the jury, the case may
| be, that the facts set forth in said petition
are true, or if it shall appear that the debt
or has paid and satisfied all liens upon his
| property, in case the existence of such Ii
| ems was the sole ground of the proceeding,
the proceeding shall be dismissed, and the
respondent shall recover costs and all pro-
| ceedings in bankruptcy may be dscontln-
ued on reasonable notice and hearing, with
the approval of the court, and upon the
sent, in writing, of such debtor, aud not
less Than one half of his creditors in num-
| Der and amount or, in case all the credit
| ors and such debtor assent thereto, such
discontinuance shall be ordered and enter
| ed /; and all parties shall be remitted, in Ell
| ther case, to the same rights and duties ex-
isting at the date of the filing of the petit
| ton for bankruptcy, except so far as such
estate shall have been already administered
| and disposed Of And the court shall have
| power to make all needful orders and de-
| crees to carry the foregoing provision into
| effect"
SEC. Is. That section eleven of said act
be amended by inserting the words "and
valuation" after the word "inventory" in
the twenty hrst line and that section for
ty-two of said act be amended by inserting
| the words land valuation" after the word
Inventory in the fifteenth line.
SEC. 16. That section forty-nine of said
act be amended striking out after the word
1.-THE" in line five, the words "supreme
courts" and inserting in lie u thereof dis
| trict courts" and in line six, after the word
"States," inserting the words "subject to
| the general superintendent and jurisdic-
| ton conferred upon circuit codrts by sec
| tiOn two of said act"
COMPOSITION WITH CREDITORS.
SEC. II. That the following provisions
be added to section forty-three of said act
That in all cases of bankruptcy now pend
ing, or to be hereafter pending, by or a.
gainst any person, whether an adjudication
In bankruptcy shall have been had or not,
the creditors of such alleged bankrupt
may, at meeting called under the direc-
ton of the court, and upon not less than ten
days notice to each known creditor of the
time, place, and purpose of such meeting,
such notice to be personal or otherwise, as
| the court may direct, resolve that a compo-
| sition proposed by the debtor shall be ac-
| cepted in satisfaction of the debts due to
| them from the debtor. And such resolu-
| lion slall, to be operative, have been pass
| ed by majority in number and three
| fourths in value of the creditors of the
| debtor assembled at such meeting either in
person or by proxy, and shall be confirm
| ed by the signatures thereto of the debtor
and two-thirds in number and ono-half in
value of all the creditors of the debtor.
| And in calculating a majority for the pur-
poses OF composition under this section,
| creditors whose debts amount to sums not
exceeding fifty dollars shall be reckoned
| in the majority in value, but not in the ma
| jority in number; and the value of the
| debts of secured creditors above the amount
| of such security, to be determined by the
| court, shall, as nearly as circumstances ad-
nit, be estimated in the same way. And
| creditors whose debts are fully secured
| shall not be entitled to vote upon or to sign
such resolution without first relInquishing
| such security for the benefit of the estate.
| The debtor, unless prevented by sick
| ness or other cause satisfactory TO such
| meeting, shall be present at the same, and
| shall answer any inquiries made of him; and
| he, or, if he is so prevented from being at
such meeting, some one in his behalf shall
| produce to the meeting statement show
| ing the whole of his assets and debts, and
the names and addresses of the creditors to
| whom such debts respectively are due.
Such resolution, together with the state
ment of the debtor as to his assets and
| debts, shall be presented to the court; and
| the court shall, upon no tice to all the cred
itors of the debtor of not less than five
| days, and upon hearing, inquire whether
such resolution has been passed in the
manner directed by this section; and il
satisfied that it has been so passed, it shall,
| subject to the provisions hereinafter con-
tanned, and upon being satisfied that the
same is for the best interest of all concern
| ed, cause such resolution TO be recorded
| and statement of assets and debts to be
filed; and until such record and filing
shall have taken place, such resolution shall
be of no validity. And any creditor of the
debtor may inspect such record and state
ment at all reasonable times.
| The creditors may, by resolution passed
in the manner and under the Circumstance
es aforesaid, add TO, or vary the provisions
of, any composition previously accepted by
them, without prejudice to any persons
| taking interests under such provisions who
| do not assent 10 such addition or variation.
And any such additional resolution shall
be presented 10 the court in the same man
ner and proceeded with in the same way
and with the same consequences as the
resolution by which the composition was
accepted in the first instance. The provis-
ions of composition accepted by such res
olution in pursuance of this section shall
be binding on all the creditors whose names
and addresses and the amounts of the debts
due to whom are shown in the statement
of the debtor produced at the meeting at
which the resolution ahall have been pass
ed, but shall not affect or prejudice the
rights of any other creditors.
Where a debt arises on a bill of exchange
or promissory note, IL the debtor shall be
ignorant of the holder of any such bill OF
exchange or promissory note, he shall be
required to state the amount of such bill
or note, the date on which it falls due, the
name of the acceptor and of the person to
whom 1t is payable, and any other partlc-
ulars within hls knowledge respecting the
same; and the insertion of such particu-
lars shall be deemed a sufficient descrip-
tion by the debtor in respect to such debt.
Any mistake made inadvertently by
debtor in the statement OF his debts may
be corrected upon reasonable notice, and
with the consent OF general meeting OF
his creditors.
Every such composition shall, subject to
priorities declared in said act, provide for
pro-rata payment or satisfaction, in mon
ey, TO the creditors of such debtor in pro-
portion to the amount of their unsecured
debts, or their debts in respect to which
any such security shall have been duly sur
rendered and given up.
The provisions of any composition made
in pursuance OF this section may be en-
forced by the court on motion made In
summary manner by any person interest