Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-02-27
THE INSOLVENCY ACT.
The Proposed Bill Regulating Assignment.
by Insolvent Debtors-A Substitute FOL

by Insolvent Debtors-A Substitute for
the Measures Now Before the Legislature.
Senator D. Buck, of Blue Earth county,
will to-day introduce the following bill re-
lat.ng to insolvent debtors as substitute
for all other bills of thailnature now before
that body:
A bill for an act to prevent debtors from giving
preferences to creditors, and to secure the
equal distribution of the property of debtors
among creditors, and for release of judgment
debtors.
Be it enacted By The Legislature Of the State of
/ Minnesota:
Section l. Whenever the property of any
debtor is attached or levied upon BY any credi-
tor by virtue Of any writ or process issued out
of a court of record of this State or government,
made against any debtor, such debtor may
| within ten days after such attachment. lew or
garnishment shall have been made, make IN
assignment of all his property and estate, not
| exempt by law, for the equal benefit Of all his
creditors, in proportion to their respective
| claims, who shall file releases Of debts and
claims against such creditors as hereinafter pro-
vided, which assignment shall be made in ac-
oordance with and be governed by the laws of
! the State of Minnesota, relating to assignments
made by debtors, and upon the making of such
assignments, all attachments, levies or gar
nlshments 80 made, shall be dissolved,
such assignment filed in the Office of the clerk
of the court, such attachment or garnish-
ment was issued or judgment was rendered, a
notice of his intention to retain such attach
msnt, levy or garnishment, in which case
any such attachment, levy or garnishment
| shall remain and inure to the benefit of all the
said creditors, and may be forced by the as
signee in tho same manner as the plaintiff
might have enforced the same had such assign
ment not been made, provided that this
section shall not apply to cases when an execu-
ton had been issued upon judgment in an ac-
ton, when the complaint has been filed in the
Office of the clerk of the court twenty days prior
to the entry of judgment.
Sec. z. Whenever any debtor, being insoi-
vent, shall confess Judgment or do any act or
make any conveyance whereby any one of his
creditors shall obtain preference over any
other of his creditors shall omit to do any
act which he might lawfully do to prevent one
of his creditors from obtaining a preference
over his other creditors contrary to the intent
of this act, or if he shall not within ten DAYS
after any levy by attachment or execution or
punishment made against him. make an as
segment of all his property as provided in
section one of this act, then any two or more
of his creditors holding debts or claims of not
less than two hundred dollars in amount NAV
make petition to the district court or Judge
thereof setting forth therein such matters and
facts as may be pertinent, which petition may
be heard in any county in the discretion of the
Judge, and after notice to the debtor and cred
itors sought to be preferred, if any, of the time
and place of hearing, the court in term time
or a judge in vacation shall proceed summarily
upon such petition to hear the parties and re-
ceiye such evidence as may be proper, and if it
shall appear to the court or judge that such
debtor is icsolvent and has been
giving or is about to give q
preference to any of his creditors over others
of such creditors, or has refused or neglected to
make an assignment of his property as herein
provided, the court or judge shall appoint a re-
ceiver who shall take possession of all of the
property, evidences of property indebted
estates of every kind of the debtor not ex-
empt by law, including property attached or
levied upon in the manner and subject to the
limitations herein provided. and all property
conveyed in vielotion of the provisions of this
act, and have charge land control of
all debts or property garnisheed, and shall
within four months from the time of his ap-
pointment. unless the court or judge otherwise
direct, convert the same to money. and shall
marshall and distribute the same, in proportion
to their respective claims, among the several
creditors, who shall file releases of all claims
against the insolvent debtor in consideration of
the benefits of the provisions of this act as
hereinafter provided, whether their claims are
due or to become due, who shall come in and
prove their respective claims within such time
|
direct, and the court Or judge shall order the
debtor to file schedule of his debts and to
whom due and of his property, and the proof
of claims of debtors, and the payment of divi-
dends in all proceedings by receivers shall be
had under the provisions of the laws of this
State relating to receivers. and the court or
Judge may order and direct such debtor to do
Whatever is necessary and proper to carry this
act into effect.
Sec. g. No assignment hereafter made for
the benefit of creditors shall give to any one
creditor any preference over the claims of an
other creditor except in cases expressly pro-
vided by law.
Sec. 4. Conveyances and payment made
and securities given by an insolvent debtor or
debtor in contemplation of insolvency within
thirty days Of tho commencement of the pro-
ceedings against such debtor, under this act or
within thirty days of making an assignment.
as provided in section one, with a view of Civ
ing preference to any creditor upon pre-
existing debt. or to any person under liability
| for such debtor over another, or any fraudulent
conveyance or fraudulent payment made at
| any time shall be void az to all creditors or
persons receiving the same, who shall have
reasonable cause to believe that such debtor
was lnsolvent, and the receiver or assignee may
by action or other proper proceeding have all
such conveyances. payments and preferences
annulled and adjudged void, and recover the
property SO conveyed OF the value thereof, and
| all parcels into money as provided in this act,
provided that the provisions of this section
| shall not affect any payment or satisfaction in
whole OF IN part of q past due debt made in
| tho usual course Of business, " ithout any in
| tent on the part of the creditor to evsde the
provisions of this act.
Sec. 5. All actions or proceedings brought
| under the provisions of this chapter shall be
| commenced in the county where the debtor
resides, If resident OF the State; and if not
resident Of this State, then such action OF pro-
ceeding may be brought in any county where
the defendant has property subject to attach
ment or levy. The court or judge may at any
time during the pending of the petition under
| the second section, of this act, allow new par
ties to come in and be Joined in such petition.
Sec. e. Costs IN cases upon which attach
ments or levies are made, which are dissolved
under the provisions of this act, shall be pre-
| ferred and be paid first, by the receiver to be
appointed hereunder.
Sec. Z. All actions and proceedings to be
commenced under the provisions of this act
| may be commenced and prosecuted in the
| name of the receiver appointed. as herein pro-
vided, and all laws of this State of general
nature applicable to receivers and not in conflict
with the provisions of this act shall apply to re-
ceivers appointed hereunder.
| Sec. .. Any creditor. whose claim Is disal-
| lowed in whole or in part by an assignee APP
pointed OF selected under this act or under the
provisions of the assignment laws of the State
regarding assignment of debtors, may appeal
from such disallowance to the district court,
and there have such claim tried as other civil az
tons. Such appeal may be taken by giving no
tice thereof within ten days after such disal-
lowance, and serving such notice on the as
signee.
Sec 9. In case of the death of any assignee
| OF receiver the court may appoint another to
| fill the vacancy.
Sec. 10. No creditor of any insolyent debtor
Il Sha
of this act, or any payment of any share Of the
prOceeds of the 0ehtar,s estate unless he hall