The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-02-08
LAW OF ASSIGNMENTS.
BREEDEN's BILL TO CODIFY TT I'm
THIS TERRITORY.
No Preferences VIII Be Allowed and
Creditors Must Take RatabIy in
Proportion to Their Claims.


The following is the text of a bill
Introduced in the Council by Breeder:
q Bill for an Act to Regulate Assign
ments for the Benefit of Creditors.
Be it enacted by the governor and
Legislative Assembly of the territory
Of Utah.
| Sec. l. That no general assignment
of property by an insolvent, or in con-
temptation of insolvency, for the bene-
mt OF creditors shall be valid, unless it
be made for the benefit of all the
creditors in proportion of their respec-
tive claims.
Sec. 2. In the case of an assignment
| of property for the benefit of all the
creditors of the assignor the assent of
the creditors will be presumed.
Sec. 8. The debtor shall annex to
such assignment an inventory, under
oath, of his estate, real and personal,
according to the best of his knowledge,
and also list Of his creditors and the
amount of their respective claims; that
such inventory shall not be conclusive
1 as to the amount of the debtors estate;
and such assignment shall vest in the
assignee the title to any other property
] belonging to the debtor at the time of
making the assignment. Every assign
ment shall be duly acknowledged in the
same manner as conveyances of real
estate and recorded in the county
where the person making the same
resides, or where the business in res
pect of which the same is made is
carried on.
Sec. A. The assignee shall also file
with the clerk of the district court in
the district where such assignment
shall be recorded, a true and full in
ventory and valuation of said estate,
T171 rlrlrp -.
come to his knowledge, and shall, then
and there. enter into bonds to said
clerk, for the use of the creditors in
double the amount of the inventory
and valuation, with one or more sure
| ties, TO be approved by said clerk, for
the faithful performance of said trust
and the assignee may thereunon pro-
coed to perform any duty necessary
to carry into the intention of said
assignment. Provided, however, that
on application of two thirds 'of the
creditors, in number and amount, the
court shall remove the assignee and
appoint in his stead q person as
assignee, approved by the creditors in
number and amount as aforesaid; and
when any assignee is removed, he shall
turn over to the clerk of the district
court, or any person appointed by the
court, all money and property Of the
estate in his hands.
Sec. 5. The assignee shall forthwith
give notice of such assignment by
publication in some newspaper in the
county where he resides, if any, and
if none, then in the nearest county
thereto, which publication shall be con-
tinued at least six weeks; and shall
also forthwith send notice by mail to
each creditor of whom he shall be
informed, directed to their usual place
of residence, and notifying the credi-
tors to present their claims, under
oath, to him within three months
thereafter.
Sec 6. At the expiration Of three
months from the time of first publish
ling notice, the assignee shall report
and file with the clerk of the said
district court, true and full list,
under oath, of all such creditors of
the assignor as shall have claimed to
be such, with a statement of their
claims, and also an affidavit of publ
cation on notice and a list of the credi-
tors, with their places of residences.
to whom notice has been sent by mail.
and the date of mailing duly verified.
Sec. z. Any person interested may
appear within three months after fling
such report, and file with said clerk
ANY exceptions to the claim or demand
of any creditor, and the clerk shall
forthwith cause notice thereof to he
given to the creditor, which shall be
served as in case of an original notice,
retrrnable within thirty days; and the
said district court shall, at the eXpira-
ton of such time, proceed to hear the
proofs and allegations of the parties
in the premises and render such judg-
ment thereon as shall be just.
Sec. s. If no exception benz ade to
the claim of any creditor, or if the
same shall have been adjudicated, the
court shall order the assignee to make,
from time to time, fair and equal dlvi-
dends among the creditors of the assets
in his hands, in proportion to their
claims, and as soon as may be, to render
a final vote of said trust to said court,
who may allow such commissions TO
said assignee in the final settlement as
may be considerer just and right.
Section 8. Upon making an order for
the distribution of the assets in the
hands of the assignee of an insolvent,
as provided in last section, the court
shall order to be paid in full, as a
preferred claim, the earnings of any
creditor for his personal services rem
dered to the assignor at any time with
in ninety days next preceding the exc
cution of the assignment.
Section 10. If upon the making of
the final dividend to the creditors of
the estate of an insolvent by the as
signee, he shall be unable, after proper
efforts, to ascertain the place of resi-
dence of any creditor, or any person
who is authorized to receive the divi-
dend due such creditor, he shall report
the same to the court, with evidence
showing diligent attempt to find the
creditor, or person authorized to re-
ceive the dividend, whereupon the
court may, in its discretion, order the
distribution of the unclaimed dividend
among the other creditors.
ci CHI Of oil
times be subject to the order and SUI
pervision of the court or judge, and the
and attachment, compel the assignee
from time to time, to file reports of his
proceedings, and of the situation and
condition of the trust, and to proceed
in the faithful execution of the duties
by this chapter. The assignee shall
dispose of all the personal property
and divide the proceeds of the same
among the creditors, as they may be
entitled thereto, within six months of
the date of the assignment, and shall
dispose of real estate within one year
from the date of the assignment and
shall make full settlement at that
date, unless the court or judge for
good reason shown, shall extend the
time within such disposition shall be
made.
Section H. No assignment shall be
declared fraudulent or void, for want
Of any list or inventory as provided
in this chapter. The court or Judge
may, upon application of the assignee
or any creditor, compel the appear
ance in person of the debtor before
such court or judge forthwith, to an