Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1874-09-18

WltueSS'.
SEC .. That in cases of compulsory OF
involuntary bankruptcy, the provisions o
said act, and any amendment thereof, or o
any supplement thereto, requiring the pay
mcnt of any proportion of the debts Of the
bankrupt, or the assent of any portion oI
his creditors, as a condition Of his discharge
from his debts, shall not apply; but he
may, If otherwise entitled thereto, be dis
charged by the court in the same manner
and with the same effect as If he had paid
such per centum of his debts, or as If the
required proportion of his creditors had as
scented thereto. Aud in cases of voluntary
bankruptcy, no discharge shall be granted
to a debtor whose assets shall not be equal Il
80 per centum OF the claims proved against
his estate, upon which he shall be liable as
principal debtor, without the assent of at
least one-fourth OF his creditors in number,
and one-third in value and the provision
in section thirty-tbree of said act of March
second, eighteen hundred and sixty seven,
requiring fifty per centum OF such assets,
is hereby repealed.
SEC. 10. That in cases OF involuntary or
compulsory bankruptcy, the period of four
months mentioned in section thrty-five of
the act TO which this is an amendment is
hereby changed to two months; but this
provision shall not take effect until two
months after the passage of this act. And
in the cases aforesaid, the period of six
months mentioned in said section thirty
five is hereby changed to three months
but this provision shall not take effect un-
til three months after the passage of this
act.
SEC. II. That section thirty We of said
act be, and the same is hereby, amended rs
follows:
First. Ancr the word "and" in line
eleven, insert the word knowing"
Secondly. Amer the word "attachment, -
in the same line, insert the words "seques-
tration, seizure.
Thirdly. After the word land" in line
twenty, insert the word "knowing'' And
nothing in said section thirty-fve shall be
construed to invalidate any loan of actual
good faith, upon security taken in good
faith on the occasion Of the max ing OF such
loan.
SEC. II. That section thirty-nine OF said
act of March second, eighteen hundred and
sixty-seven, be amended so as to read as
follows:
"SEO. 80. That any person residing, and
owing debts, as aforesaid, who, AFTER the
passage of this act, shall depart from the
State, District, OF Territory Of which he is
an iuhabitant, with an Intent to defraud his
creditors ; or, being absent, shall with such
intent, remain absent; or shall conceal
himself to avoid the service of legal proc
ess in any action for the recovery of a debt
or demand provable under this act; or
shall conceal or remove any of his proper
ty to avoid its being attached, taken, or Sc
questered on legal process; or shall maxi
any assignment, gift, sale, conveyance, or
transfer OF his estate, property, rights or
credits, either within the United States or
elsewhere, with intent to delay, defraud, or
hinder his creditors or who has been ar
rested and held in custody under or by vir
tue of mesne process or execution, issued
out of any court of the United States or of
any State, District, or Territory within
which such debtor resides or has property,
founded upon demand in its nature prov
able against a bankrupps estate under this
act, and for a sum exceeding one hundred
dollars, and such process is remaining in
force and not discharged by payment, or in
any other manner provided by the law of
the United States, or Of such State, District,
or Territory, applicable thereto, for peri
cd Of twenty days, or has been actually i'm
prisoned for more than twenty days in a
civil action founded on contract for the sum
of one hundred dollars or upward or who,
being bankrupt or insolvent, or in contem-
plation of bankruptcy or insolvency, shall
make any payment, gift, grant, sale, con-
veyance, or transfer OF money or other
property, estate, rights, or credits, or con-
fess judgment, or give any warrant to con-
fess judgment, or procure his property to
be taken on legal process, with intent to
give preference to one or more of his
creditors, or to any person or persons who
are or may be liable to him as indorsers,
bail, sureties, or otherwise, or with the in
tent, by such disposition of his property,
TO defeat or delay the operation of this act I;
or who, being bank, banker, broker, mer-
chant, trader, manufacturer, or miner, has
fraudulently stopped payment, or who be-
ing a bank, banker, broker, merchant, trad
p m al mr. Gtnnnan
suspended and not resumed payment, with
in period of forty days, of his CONNER
cial paper, (made or passed in the course
OF his business as such), or who, being a
bank or banker, shall fail for forty days to
pay any depositor upon demand of pay
ment lawfully made. shall be deemed TO
have committed an act of bankruptcy, and
subject TO the conditions hereinafter pre-
scribed, shall be adjudged bankrupt on
the petition of one or more of his creditors
who shall constitute one-fourth thereof, al
least, in number, and the aggregate ol
whose debts provable under this act a.
mounts TO at least one-third of the debts SC
provable Provided: That such petition is
brought within six months AFTER such aci
OF bankruptcy shall have been committed.
And the provisions OF this section shall
apply to all cases of compulsory or invol-
untary bankruptcy commenced since the
first day of December, eighteen hundred
anu SeN6uly~luTee, dS well MS 10 InOS6 COIL
menced hereafter. And in all cases COM
menced since the first day of December
eighteen hundred aud seventy-three, anC
pior to the passage OF this act, as well a.
those commenced hereafter, the court shall
if such allegation as to the number ol
amount of pettioning creditors be denied
by the debtor, by statement in writing tC
that effect, require him to file in cour
forthwith full list OF his creditors, with
their places of residence and the sums due
them respectively, and shall ascertain, up
on reasonable notice to the creditors, wheth
or one-fourth in number and one-third il
amount thereof, as aforesaid, have peti
toned that the debtor be adjudged bank
rupt. But if such debtor shall, on the i'll
ing of the petition, admit in writing thai
the requisite number and amount OF cred
itors have petitioned, the court Cf satisfied
that the admission was made in good faith,
shall so adjudge, which judgment shal
be final, and the matter proceed with
out further steps on that subject. And if i
shall appear that such number and amoun
have not so petitioned, the court shall gran
reasonable time, not exceeding, in cases
heretofore commenced, twenty days, and
in cases hereafter commenced, ten days
within which other creditors may Join il
such petition. And If, at the expiration o
such lime so limited, the number and a
mount shall comply with the requirem ent
may proceed; but if, at the expiration 0
such limited time, such number and a
mount shall not answer the requirement
of this section, the proceedings shal
be dismissed, and in cases hereafter com
menced with costs. And If such persoI
shall be adjudged a bankrupt, the assigne'
may recover back the money or propert,
so paid, conveyed, sold, assigned, or trans
ferred contrary to this act: Provided, Tha
the person receiving such payment or con
veyance had reasonable cause TO believe
that the debtor was insolvent, and knew
that fraud on this act was intended and
such person, If creditor, shall not, in cas-
es of actual fraud on his part, be al
lowed to prove for more than moiety o
his debt aud this Limitation on the proc
of debts shall apply TO cases OF voluntar.
as well as involuntary bankruptcy. Ant
the petition OF creditors under this section
may be sufficiently verified by the oaths o
the first five signers thereof, II 80 man.
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