The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1897-05-05
WHAT THE NEW LAWS ARE
INTENDED TO ACCOMPLISH.
NUMBER TWENTY-NINE.

The Legislature, among other things,
amended the Act of March 20, 1898,
for the relief of insolvent debtors, for
the protection of creditors, and for the
punishment of fraudulent debtors. The
Act is of almost universal interest, and
is given in full as follows:
Section s. No claim shall be entitled
to a vote for the election of an assig-
nee. unless such claim shall be placed
on file in the office of the Clerk of the
court in which the proceedings are
pending, at least two days prior to the
time appointed for the election of an
assignee All claims shall be eStab-
liShed by a statement, showing the
amount and nature of the claim, and
security if any; such statement to be
verified by the claimant, his agent or
attorney; provided, no claim barred by
the statute Of limitations shall be
proved or allowed against the estate of
an inSOlvent debtor for any purpose.
Any person interested in the estate of
the inSolvent may file exceptions to the
legality or good faith of any claim, by
setting forth specifically in writing, his
interest in the estate, and the grounds
of his objection to such claim; such
specifications of exceptions to be veri-
fed by the affidavit of the party OBJ
jecting, his agent or attorney, setting
out among other things that such ex-
ceptions are not made for the purpose
of delay, or otherwise than in good
faith in the best interest of said estate.
Such exceptions to be filed with the
Clerk of the court at least one day be-
fore the time appointed for the cleo
1f
lions shall be heard and disposed of by
the court, on affidavit or other evidence,
in summary manner, before the cleo
ton of an assignee. But the decision
of the court upon the exceptions as to
whether the claimant shall be entitled
TO vote for an assignee shall not be
conclusive upon the right of the party
to participate in the assets of the in
solvent the enforcement of such right
being subject to the laws of the State
touching the establishment of claims
against the estates of insolvents in
case of dispute. No creditor or claim
ant, who holds any mortgage, pledge,
or lien of any kind whatever as secur-
ity for the payment of his claim, shall
be permitted to vote any part of his
secured claim in the election of as
signee, unless he shall first have the
value Of such security fixed as pro-
vided in Section 4S of this Act or sur
render to the Sheriff or Receiver of the
estate Of the insOlvent, if any Receiv-
er, all such property so mortgaged or
pledged, or assign such lien to such
Receiver or Sheriff; such surrender or
assignment of security or lien to be for
the benefit of all creditors of the es-
tate of the inSolvent. The value of
such security, if fixed by the court,
shall be so fixed at least one day be-
fore the day appointed for the election
of an assignee; in which event the
claimant may prove his demand, as
provided in this section, for any unse-
cured balance, subject to the same ex-
ceptions as all other claims.
Section 3 Section 40 of an Act en-
titled An Act for the relief of insol-
vent debtors, for the protection of cred
itors, and for the punishment of frau
dulent debtors" approved March %,
1895, is hereby amended to read as
follows:
Section 40. No creditor, proving his
debt or claim, shall be allowed to main
tain any suit at law or in equity there
for. against the debtor, but shall be
deemed to have waived all right of act
ion and suit against him; and all pro-
ceedings already commenced, or unsat-
isfied judgment already obtained there
on, shall be deemed to be discharged
and surrendered thereby; and after the
debtors discharge, upon proper appli-
cation and proof to the court having
jurisdiction, all such proceedings shall
be dismissed and such unsatisfied
judgments satisfied of record; provided,
that no valid lien existing in good
faith hereunder shall be thereby af-