The Providence news. (Providence [R.I.]) 1891-1906, 1897-08-09

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Entitled "of Proceedings In Insolven.
Passed May 27. 1917
IL Is enacted by the General Assembly as
Section !. Section 20 OF Chapter ga OF
the General Laws entitled Proceedings
In insolvency Is hereby amended to read
"sec. 20 The court may. after the COM
mencefnent OF proceedings by or against
any debtor. and before adjudication In in
solvency thereon, restrain the debtor and
all other persons from making any trans
fer or disposition or Interference OF or
chooses in action. rights credits or estate
OF any kind or description and upon prop
er cause being shown may In order to
protect the rights Of all parties, appoint
with power OF removal and substitution,
any suitable person or persons as Gus
todian or custodians, and In case OF such
or them 10 seize and hold such assets
chooses In action, rights, credits and es-
tate of the debtor. except such other than
bills or exchange or negotiable promis-
sorry notes as are exempt from attach.
ment by law: Provided. that on lnvolun-
tary proceedings the party asking foi
debtor with surety. 10 deliver 10 the
court. to pay all damages resulting there
from n case @ such proceedings shall prove
Sec. 2. The custodian or custodians so
appointed shall be subject 10 the order Of
the court from time 20 time and unless
ton in insolvency shall have been adjudi-
Gated: and further. IN case OF adjudica-
ton or insolvency until an assignee or as
signces or the insolvent shall have beer
duly appointed and shall have qualified
according 10 law.
Sec. 8. The court in it's discretion may
require such custuflan or custodians TO
give bond 10 the debtor In such sum. and
such surety or sureties az the court shall
determine, and may also in its discretion
authorize and direct such custodian OF
CuStOQlNnS DTOnpTtN
perishable In its nature or which can only
be Kept at great or disproporuonate ex-
pensc. that has come TO his or their pos
session by virtue OF such appointment
and TO take such other action as the court
may direct And such custodian or Gus
todians therein. shall be subject 10 tht
immediate control OF the court. and act
on it's discretion. Joint custodians may
give bond Jointly or severally.
Sec. 4 Such custodian or custodians
shall receive such reasonable compensa-
tion from the assignee or assignees OF the
assigned estate which has been adtudi-
Gated as insU!venr. and otherwise from
tho petitioner or petitioners for the GUS
todianship as the court shall deem prop
err. and the court shall make order ac-
cordingly. wilCh order shall have the ef-
feet OF a judgment az law. and If not sat-
isfied may b. sued upon in action Of debt.
Sec. ). Tho condition Of the bond or
bonds given und section 3 OF this act,
shall he IN substance that II the obligor
or obligors therein named. shall faithfully
perform the duties OF custodian as pre-.
ment thereto IN force at the time OF the
expiration OF such bond. the obligation
shall be void otherwise in full force and
effect: and IL Is hereby expressly provid:
ed that no such obllgcr or obigors shall
be answerable In damages except for viii.
ful neglect Of such duties. or for wilful
disregard OF judicial Instruction.
Sec. 6. The court upon ex-parte motion
upon notice. may II IL deem IL advan-
tageous TO do so. authorize and direct the
custodian or custodlans to continue the
NJ b.s N
course but without power to purchase
new stock or 10 incur other than neces-
sary expense for keeping the business
Sec. 7. Section 20 of said chapter is
hereby amended 10 read as follows:
Sec. % Every insolyent shall be or.
dered by the court 20 file with the clerk
within five days after being adjudged in
solvent In involuntary proceedings. unless
further time Is granted by the court
sworn itemiZed schedule OF his assets
showing the amount and kind OF property
where located and the cash value thereof
TO the best OK his knowledge and belief.
and a list Of his creditors, stating their
names, residences and the amounts due
each OF tnem and the evidences thereof.
and securities therefor IL any, held by
them, which order IL not complied with
may be enforced by proceedings in con.
Sec, s. Section "A of said chapter 4.
hereby amended 10 read as follows:
Sec. A. kssignees shall respectively
collect and reduce to cash the assets OF
the estate; deposit all cash received by
them in one OF the designated deposito.
rics OF the court; disburse funds only by
check or DRAFT upou tho repositories in
which they have been deposited; which
check or draft shall be countersigned by
tho register; shall account for and pay
over TO the cstete all interest received by
them; furnish all proper information ir
their possession az reasonable times re.
Quired by parties in interest; keep regu.
lar accounts OF all receipts and disburse.
ments and showing the sources whence
received and on what account expended
give 10 the final meeting OF creditors
detailed statement OF the administration
OF their trust. pay dividends within ten
DAYS after they are declared by the regis
ters: report 10 the court or register If be-
fore a register. in writing. the condition
of the estate and the amount OF money
on hand. with such other details may
be required by the court by special or
general order or by the register within
two months after they are qualified. and
thereafter when ordered by the court or
register. Whenever three asslgnees have
been appoin ed, the concurrence of two
shall be ncrf yFary and sufficient TO the