Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1889-05-06
SOME NEW LAWS.


An act to prevent del tors in rOntCmp'H
ton Of insolvency from prefrrrim@ one ol
more creditors to the exclusion i'll NuGlp
Or in part OF others.
Section Livery sale, mortgage, or as
signment made by debtors, and every
Judgment suffered by any defendant, or
any act or device done or resorted TO by Il
debtor in contemplation of insolvency
and with the design to prefer one or more
creditors to the exclusion in whole or in
part of others, shall operate as an assign
ment and transfer Of all the property and
effects of such debtor and shall inure to
the benefit of all his creditors Except as
hereinafter provided, in proportion to the
amount of their respective demands, IN
Guiding those which are future and CON
tngent, but nothing in this act shall
vitiate or affect any mortgage made III
good faith to secure any debt or Liability
created simultaneously with such mort
gage, if the same be lodc Led for record
forthwith in the office of the county re-
corder where the property described there
in shall be situated.
Sec. ALL such transfers as are herein
tltNldlGhl W lllulc W lIlt lclltlll VI Nlt'ill-
ors genel allt shall be subject to the CON
troll OF courts of equity upon the bill Of
any person interested, fled within SIX
months after the mortgage or transfer is
legally lodged for record or the delivery
Of the property or effects transferred.
Sec. 3.-Any number OF persons in
terested may unite as complainants in the
bill of complaint; but it shall not be nee
eSsary to make any persons defendants
except the debtor and transferee; such
bill of complaint shall state the amount OF
the debts of the defendant debtor, 50 far
us known to the complainant, and such
action the court shall make an order for
such of the creditors of the defendant
debtor as are not Joined as defendants in
the bill Of complaint, to appear before Il
master to be appointed by the court, and
prove their claims before Il certain day to
he named in the order, notice OF which
shall be given by advertisement in news
paper or, if none be published in the
county, then by such other mode as the
court may judge best calculated to give
such creditors actual notice of the order
and, in addition to the advertisement in Il
newspaper, the court may direct publira-
ton in other modes. 4 creditor appear
ing before the master and presenting his
claim shall thereby become party to the
action and be concluded by the final judy
ment of the court allowing or rejecting his
claim. Any creditor who shall fail to APP
pear and prove his claim agreeable to such
order, shall he precluded from partcipa-
ton in the distribution of the assets Of tile
debtor hereinafter provided for.
Sec. 1.-THE court or judge may at any
time pending the action, and upon such
terms as it shall be deemed proper, com
pei the transferee to surrender to re-
ceiver of the court all property and effects
in his possession or under his control
and it may make such orders respecting
the property as courts of law are now al
lowed to make concerning attached prop
erty And when it is decided that a sale
mortgage or assignment was made in con-
temptation Of insolvency, and with the
design to prefer one or more creditors &c
the exclusion in whole or III part Of
others, the court shall compel the debtor
to surrender to such receiver all property
and effects in his possession or under his
control, except such property as is exempt
| from execution to disclose the amount O
| his debts, the names and residence of his
creditors, all offsets and deienSeS to any
claims against him, or any ther matte
which shall be deemed proper; and TIT
court shall also compel every person wh'
shall acquire by purchase, assignment o
otherwise, any property or effects iron
such debtor, after the suit contemplated
| | Al 4 tnl
surrender the same to such receiver.
Sec. 5.-The court may max distrbu
ton of the assets on hand from time t.
time, and the decision of the court at til
time Of any distribution, allowing or dis
allowing any claim, shall he held tinH
judgment and may be appealed from u
other final judgment.
Sec 6.-The court or judge may gran
against such debtor Il writ OF ne cXeat, o
attachment in clancery as for contempt
when it shall be made to appear by atlid;
Wit that such writ or attachment is neres
sary to secure the sur ender or disclosure
provided for herein.
Sec. Tile claims of creditors sha
be verified by the oath OF the creditor, hi
agent or attorney, before any portion {
the assets shall be received thereon.
Sec. Sin case OF any voluntary a
Segment for the benefit OF creditors, sue
assignment shall not become Operatil
and the assignee Shall not enter into POI
session of the property assigned until /
shall have executed a good and SuliicieI
bond to the territory of New Mexico III
sum to he fixed by the judge OF the iii
tri court of the county of the ass LnOr
! residence. which sum shall not be LEI
, than double the value of the property Il
signed, which value shall be ascertaint
by proof satisfactory to such district judi
before the approval Of the bond, co
I ditioned for the faithful performance
T all his duties as such ASST Inee, and /
the payment to the parties entitled thei
to, promptly and without delay, OF AL SUI
OF money which may come into his han
) rs such assignee. And any person :
grieved may maintain an action upon t
y said bond i'll his own name or in the MAJ
Of the territory on his relation in Il
:, district court of this territory having jur
1 diction.
:. sec. 0.-ln case OF any voluntary
signment referred to in section 8 of Il
. act, if the assignee shall fail within TIVE
months to settle up the estate OF his
Id signor and distribute the proceeds Their
hSS among the creditors entitled thereto, Il
d. d. creditor aggrieved may file u bill OF co
re plant in any district court having jurist
I'd ton OF the subject matter and the part
as as compel such settlement and Distribute
liza and thereupon such suit shall proceed