The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-21
THE STATE CAPITAL.
APPOINTMENT OF A COMMITTEE ON GAME LAWS
IN THE sENATE-A BILL FOR THE APPOINT
MENT OF RECEIVER TO INsoLvENT COR
pOEATIONS

IN lie oENAIE-A BILL FOX The APFOlNI-
MENT OF RECEIVER TO INsoLvENr COR
PoRATIoNs.
by TELEGRAPH TO THE HERALD
ALBANY. Jan. 20, 1879.
The only business transacted in the Senate before
the democratic caucus held. the adoption Of
Senator WagstafTs resolution adding committee on
game laws to the standing committees of the Senate
and the Introduction of the following important bill
by Senator Harris which is generally supposed to
fer to the revival of insolvent insurance COM
panes:-
SECTION /. Upon the appointment of receiver
of any corporation formed under the act to authorize
the formation of corporations for manufacturing
mining. mechanical. chemical other purposes
against which corporation q judgment for
money has been recovered in this state
and execution thereon has been returned
unsatistied in whole in part. all rights of
action against the trustees stockholders of such
corporation under any of he provisions of the sew
cral laws relative to these corporations which
might exist in favor of the creditors of
such corporation. or any OF them, shall
vest in the receiver aforesaid. and he shall
be entitled to commence and maintain all or any of
such actions. aud the funds arising thererom after
the payment Che and expenses thereof shall
be divided ratably among the creditors of such
poraon, who by the terms OF the statutes aforesaid
would be entitled thereto.
SEC. =. This act shall relate to any action OF the
above nature which has already been commenced in
the name of the receiver.
SEC. d. II d creultOr snail Rpply 10 tne receiver
to commence an action against the trustees or stock
holders thereof of the nature above described and if
upon such application such creditor shall offer to
furnish the bond for costs which the Court may
exact condition of granting leave to the receiver
to sue, it shall be the duty OF such receiver
to make application for such leave, and upon the
creditor furnishing such bond the Court may
direct it shall be the duty of such receiver to COM
mence such suit and prosecute it to final judg
ment In case the receiver ncglects refuses
to apply for leave to commence such suit
after such application and offer is made
to commence such suit after he has obtained leave
and tho Court has approved the bond, them and in
such suit in his behalf and i'll behalf of all other
creditors who shall come i'll and be made parties
ana contribute to the expenses Of such suit and the
FUND. when collected. shall be distributed,
under the direction of the Court. to these who, by
the terms of the statutes, would be entitled thereto,
provided they have come in and made themselves
parties and contributed the expenses of such suit
but III the suit brought by the creditor under such
circumstances he shall make the receiver party de-
PENDANT ana shall alege in his complaint and prove
the refusal above mentioned.
SEC 4.-The receiver, under the circumstances
mentioned in the last section, shall not be compelled
to commence or carry on any such suit in cases
where he has no funds OF the corporation
| from Which to pay the expenses thereof. In
| such cases, if such action is desired upon
the part of the creditors any of them they must
contribute to the receiver such reasonable as
may be proper to pay the expenses incident to the
vanced, the parties advancing the shall have
lien on any funds recovered in such action.
and before any part thereof shall be distributed
| they shall be repaid the amount SO advanced which
shall be regarded as proper expense OF the suit,
and in the receiver and the creditors proposing
| to advance the money shall differ to the
\ proper amount the amount shall be deter
! mined by the Court on summary application to it by
| either party upon such notice to the other the
Court may direct The amount thus paid or advanced
to the receiver shall not be regarded the total
| amount Of the expense of the suit in of
recovery, but the receiver may pay in such case
such further sum for expenses and fees
he may think proper. subject to the power Of the
Court to allow the same as proper payment or not
upon the settlement of the accounts of the receiver