Daily globe., 1881-03-19
1OS

distribution OF the property OF debtors
among their creditors and for the release Of
debts against debtors.
Be it enacted by the Legislature of the State OF
Minnesota:
Section 1. Whenever the property Of any
debtor is attached or levied upon by any Of
ficer, by virtue of any writ or process issued
out of court of record of this State, in ia
vOr of any creditor or garnishment made
against any debtor, such debtor may within
ten days after the levylng of such attachment,
process or garnishment shall have been made,
make an assignment of all his property and
estate not exempt by law, for the equal ben
eft of all his creditors in proportion to their
respective valid claims, who shall file releases
of their debts and claims against such cred
itors as hereinafter provided, which assign
ment shall be made in accordance with and be
governed by the laws Of the State of Min
nesota, relating to assignments made by debt
ors, except as herein provided, and upon the
making of such assignment all attachments
levy or garnishment SO made shall be dis
solved, upon the appointment and qualifica-
tiOn of an assignee or receiver, and thereupon
the officer shall deliver the property attached
or levied upon to such assignee or receiver,
unless the assignee shall within five days af-
ter such assignment, file in the office of the
clerk of the court where such attachment was
issued or judgment was rendered, notice of
his intention to retain such attachment, levy
or garnishment, in which case any such at
tachment, levy or garnishment shall inure to
the benefit of all the said creditors, and may
be enforced by the assignee by his substitu-
tiOn in the action as such in the same manner
as the plaintiff might have enforced the same
had such assignment not been made; pro-
yided, however, that this section shall not
apply to cases where an execution has been is
sued upon judgment in an action where the
complaint has been filed in the office of the
clerk of the court twenty days prior to the
entry Of the Judgment
Sec 2. When any debtor, being insolvent,
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, or shall omit to do any
act which he might lawfully do to prevent any
one of his creditors from obtaining prefer
ence over his other creditors, contrary to the
intent of this act, or if he shall not within
ten days after any levy by attachment, execu-
tion or garnishment made against him, make
an assignment of all his property as provided
in section one of this act, or within such
time in good faith institute proceedings to va
cate the attachment and execution or garnish-
ment, or secure release of such levy and de-
fend against the said garnishment at the first
opportunity, then, or within sixty days there
after, any two or more of his creditors hold
ing and owning debts or claims of not less
than two hundred dollars in the aggregate
amount, may make petition to the district
court, or judge thereof, setting forth
therein such matters and facts as may be per-
tinent, which petition may be heard in any
county, in the discretion of the judge and
after notice given in pursuance of the order
of the court and in such manner as the court
may direct, to the debtor and creditors sought
to be preferred, of the time and place of hear
ing, the court in term time, or judge, in va
cation, shall proceed summarily upon such
petition to hear the parties and receive such
evidence as may be proper, and if it shall ap-
pear to the court or judge that the debtor is
insolvent, or has been giving or is about to
give preference to any of his creditors over
other of his creditors or any of them, or has
refused or neglected to make an assignment of
his property as herein provided, the court or
judge shall appoint receiver who shall take
possession of all the debtor's property, evil
dences of property or Indebtedness books, pa
pers, debts, chooses in action, and estates of
every kind of the debtor, including property
attached or levied upon or garnished in the
manner and subject to the limitations herein
provided, and of all property conveyed in vi
olation of the provisions of this act, and have
charge and control of the same and of all
debts or property garnished, except property
exempt by law, and shall within four months
of the time OF his appointment, unless the
court or judge otherwise directs and allows
farther time, convert the same to money and
shall marshal and distribute the same among
the several creditors in proportion to their
several claims, who shall file releases of all
claims against the insolvent debtor in consid-
Grafton of the benefit of the provisions of
this act as hereinafter provided, whether
orQ d1p IN dyIo nd
who shall come in and prove their respective
claims within such time and in such manner
as the court or judge shall direct, and the
court or Judge shall order the debtor to
file schedule Of his debts and to whom they
are due or payable, and of his property in
cluding all notes, accounts, and bills payable
to him and the proof thereof, and the pay
ment of dividends in all proceedings 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
the benefit of such creditor shall give to any
one creditor any preference over the claims of
another creditor except in cases expressly
provided by law. If any insolvent debtor
shall confess or suffer judgment to be pro-
cured in any court with intent that any one
Of his creditors shall obtain a preference over
any other of his creditors, such insolvent
debtor shall be deemed guilty of misde-
meanor and punished by fine not exceeding
five hundred dollars, and in default of pay
ment shall be imprisoned in the county jail
for period not exceeding six menths. The
court may at any time upon the filing of af-
fdayits or other evidence satisfactory to the
court, grant an order restraining such debtor
from collecting any bills, notes, accounts or
other property, or from disposing of, or in
any manner interfering with the property of
SAID estate, or may by writ of ne Great, or by
order, restrain said debtor from leaving the
State until the further order of the court, or
may require him at any time to appear and
make full disclosure as to any disposition of
property, or in relation to any other matter
pertaining to said estate.
Sec. 4. Conveyances and payments made
and securities given by any insolvent debtor,
or debtor in contemplation of insolvency,
within four months of making an assignment
as provided in section one of this act, with a
view Of giving preference to any creditor
IL l.