Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-12-24
TO PREVENT FRAUD.
AN IMPORTANT ACT PASSED ~ THE
N. C, GENERAL ASSEMBLY.
r..,xpess 10 Prevent franduient Assign
menss, and for the Protection Of All
Glasses Of Creditors.


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RALEIGH. n. c.. December 1.--tspe-
eiaI)-The following bill. entitled an Act
% preycnt fraudulent assignments" was
recently passed by the General Assembly;
The General Assembly Of North Caro-
lima do enact:
Section !. That upon the execution OF
any voluntary deed OF trust or deed OF
assignment for the berent OF creditors,
all debts Of the maker thereof shall be-
come due and payable ct once; schedu'e
of all preferred debts shall be filed under
path by the assignor In the office OF the
clerk OF the Superior Court OF the county
In which such assignment Is made, stat
ing the name OF preferred creditors the
amount due each, when debt was made.
and the circumstances under which SAID
sebt was contracted. and said schedule
shall be filed within Ave days of the
registration OF such deed OF assignment
Section 2. That upon the execution OF
such deed OF trust or deed OF assignment,
the trustee or assignee. whether named
therein or appointed as hereafter pro-
yided for, shall file with the clerk OF the
said deed OF trust o. deed OF assignment
IS registered within ten days AFTER the
registration thereof an inventory. under
oath, giving q complete, full ana per-
feet account OF all property that has come
into his hands or In The hands OF any
person for him by virtue OF such deed OK
trust or deed OF assignment, and when
ever further property of any Kind not
included in any previous return shall
come 10 the hands or knowledge OF such
trustee or assignee. he shall return the
same as hereinbefore prescribed within
ten DAYS after the possession or discovery
thereof.
REMOVE THE TRUSTEE.
Section 3. That upon the complaint OF
any creditor of tho assignor or trustee
IN such deed OF trust or deed OF assign
ment, alleging under oath that the as
signee or trustee named therein Is in
solvent, and asking that he be required
10 give bond or be removed. il shall be
the duty OF the Clerk OF the Superior
Court OF the county in which such deed
OF trust OF deed OF assignment Is regis
tered, upon notice OF not more than
ten days TO such trustee or assignee. to
hear said complaint. and II upon such
hearing said clerk shall be satisfied that
such trustee or assignee IS insolVent
IL shall be his duty 10 remove such trus-
tee or assignee and TO appoint some com
petcnt person TO execute the provisions
OF such deed OF trust or deed Of assign
ment: provided that said clerk shall not
remove such insolvent trustee or assignee
upon his filing with said clerk good
and sufficient bond TO be approved by
said clerk, IN a sum double the value OF
the property In said deed OF trust or deed
Of assignment, payable TO the State OF
North Carolina, and conditioned that such
trustee or assignee shall faithfully exc
cute and carry into effect the provis DnS
Of said deed OF trust or deed OF assign
ment: and provided further. that upon
the removal OF such insolvent trustee or
assignee It shall be the duty OF said clerk
10 require the person appointed to exc
cute the provisions Of such deed OF trust
or deed OF assignment before entering
upon his duties TO file with said clerk
good and sufficient bond. to be approved
by said clerk in a sum double the value
OF the property in said deed OF trust or
deed OF assignment. payable TO the State
of North Carolina, and conditioned that
such person shall faithfully execute and
carry into effect the provisions OF said
deed of trust or deed OF assignment
UNLAWFUL TO SELL.
Section l. That it shall be unlawful for
such deed OF trust or deed of assign
ment, or appointed by a Clerk OF the
Superior Court, to sell any part OF the
property described In such deed OF trust
or deed OF assignment within ten days
from the registration thereof. unless such
property. or some part thereof, be per-
ishable. in which case he may sell such
property ne Is perishable. according to the
powers conferred upon him In said deed
OF trust or deed OF assignment
Section 8. That such trustee or assignee,
whether named In the deed OF trust or
deed OF assignment. or appointed by
Clerk OF the Superior Court. shall, within
three months from the registration or
such deed Of trust or deed OF assignment,
file with the Clerk Of the Superior Court
Of the county in which the same Is re-
gistcred an account. under oath, stating
In detail his receipts and disbursements
and his action as trustee or assignee ana
at each succeeding period Of three months
he shall file a like account, and within
twelve months he shall file his final ac-
count of his administration OF his trust:
provided that the Clerk OF the Superior
Court shall have power upon good cause
shown, TO extend the time within which
the quarterly and final accounts herein
provided for are to be filed.
Is JUSTLY DUE.
Section G. That all creditors Of the
maker Of such deed of trust or deed of
assignment shall. before receiving pay
rnent OF any amount from the said trus-
tee or assignee. file with the said Clerk
Of the Superior Court statement r1der
oath that the amount claimed by him is
Justly due. after allowing all credits
and offsets, TO the best of his knowledge
and belief
Section 7. That any creditor who shall
knowingly swear falsely In such state
ment shall be guilty of a misdemeanor.
Section g. That any trustee or assignee
who shall fail 20 file his inventory or
return, as required In this act. or shall
knowingly make any false statement In
such inventory or return, or shall know
ingly fall 10 include any property therein.
or shall sell any part OF the property
described in the deed OF trust or deed
Of assignment within ten days, unless
such property so sold be perishable. or
shall fail to file either of the quarterly
accounts or the final accounts. as re-
quired by the fifth section of this act.
or shall knowingly make any false state
ment In such quarterly or final account.
or shall knowingly fail 20 include any
property money. or disbursement in such
quarterly or final account. such trustee
shall In either case be guilty OF a mis-
demeanor
Section o That the clerks of the SUI
perior courts shall receive the same fees
for their services as are allowed by
law upon Inventories, accounts. and pro-
ceedings OF executors and administrators.
Section 10. That this act shall be in
force from and after the LIST day OF