The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-05-16
CHAPTER $40.

AN ACT TO ADD AN ADDITIONAL
SECTION TO ARTICLE % OF THE
CODE OF PUBLIC GENERAL LAWS,
TITLE CORPORATIONS" SUB
TITLE DISSOLUTION OF CoRPo-
RATIoNs." TO FOLLOW SECTION
264. TO BE DESIGNATED AS SECTION
264 A, RELATING TO PREFERENCES
AND TO FRAUDULENT AND M
PROPER CoNvEYANCEs AND
TRANSFERS MADE BY CORPORA
TIoNs WHEN INsoLvENT OR IN
CONTEMPLATION OF INSOLVENCY.
Section BE it enacted by the General
Assembly of Maryland, That a new sec
ton be, and the same Is. hereby added to
Article % of the Code of Public General
Laws, title Corporations, subtitle
Dissolution of Corporations" to follow
Section 264, to be designated as Section
26+ A, and to read as follows:
264 A. Whenever any corporation men
toned in Section 264 of this Article, other
than railroad companies chartered by this
state, shall have been determined or
proven TO be insolvent. as in said Section
264 stated, all payments, conveyances and
assignments of the money, property, debts
or claims of said corporation. and all pref
erences howsoever made by 1t or by any of
its officers on its behalf, which would be
void or fraudulent If the same had been
made by a natural person who had be-
come an insolvent under Article AZ of the
Code of Public General Laws, shall to the
fraudulent and void when made by
such corporation or by any of its
officers on its behalf, and whenever
any such corporation shall have been
adjudged to be dissolved, as provided
in the next preceding section of this
article, all of its property and as
sets of every description shall be distrib-
uted to the creditors of said corporation in
the same manner that the property and
assets of an insolvent debtor are distrib-
uted under the provisions of Article Il of
the Code of Public General Laws but no
discharge shall be granted TO the said
corporation, and the receiver of such cor
poration shall have the same power and
authority to maintain suits and proceed
ings to set aside preferences and void or
fraudulent transfers and payments, con-
veyanceS and assignments by said cor
poration or by any of its officers on its be-
halt IN the same manner and to the same
extent as the permanent trustee of an in
solvent debtor has under Article a Of
the Code of Public General Laws In refer
enoe o preferences and void or fraudulent
transfers, payments, conveyances and as
signments when made by natural per-
son who has become an insolvent debtor,
and the date of the filing of the bill against
such corporation, upon which It may be
dissolved, shall be taken and treated for
the purpose of determining the validity
of preferences and for all other purposes
as the date OF the Ming of the petition in
insolvency by or against a natural person.
Section 2 And be it further enacted,
That this Act shall take effect of its pass
age.
Approved April 4. 1896
LLOYD LOWNDES, Governor.
WILLIAM CABELL BRUCE,
President of the Senate.
SYDNEY E. MUDD,
Speaker OF the House of Delegates.
We hereby certify that the aforegoing is
correct copy of an Act of the General
Assembly OF Maryland, passed January
Session, 1896.
]. ROGER McSHERRY,
Secretary of the Senate.
NJ. NJ. HIGGINS.
Chief Clerk of the House of Delegates.