The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1908-09-04

other persons. not citizens OF this state
who shall have been parties TO the pro-
ceedings. IL such composition shall not be
confirmed by the court. proceedings shah
go on as IL such offer had not been made.
OF DISCHARGES.
Sec. 50. A discharge in insolvency shall
release an insolvent from all his provable
ierss due TO citizens Of this state, and
tro.a all his provable debts due 10 all
9th .r persons who shall have become par
ties to the proceedings by proving their
claims as herein provided except 10 such
as have priority as provided in section
fifty-eight Of this chapter.
Sec. 81. Any insolvent may. at any time
after being adjudged an insolvent apply
TO the court for "A discharge. Notice OF
such petition and of the time and place OF
hearing thereon shall be given. 10 all par
ties interested. in such manner as the
court may direct. by publication or other
wise The court shall hear the petition for
discharge and such answers or objections
as may be filed in opposition thereto by
parties in interest and shall discharge the
petitioner IL the circumstances warrant.
But IL the petitioner be a merchant man.
ufacturer. or trader. he shall not be dis
charged IL he has. within four months
prior to being adjudged insolvent. failed
10 keep or has destroyed his books of ac-
count or papers. from which his true con-
dition may be known. with the intent TO
hinder. defraud. or delay his creditors; or
given or suffered 10 be created "A prefer
ence as herein defined. under an assign
ment for the benefit OF creditors or other
wise which preference has not been sur
rendered: or knowingly made any mate
rial false statement in writing concerning
his financial condition to any person for
the purpose OF obtaining credit, or TO
those from whom he has sought to obtain
or has obtained credit. or made any con
veyance or transfer OF his property. or
suffered any lien thereon to be obtained In
fraud OF this chapter. unless such proper
ty or lien shall have been surrendered TO
the assignee: Provided, that such dis
charge may be granted under the provi-
sons OF section forty-nine OF this chapter.
or with the consent of his creditors repre-
senting two-thrds in amount Of all known
and undischarged liabilities. But nothing
herein contained shall affect section thir-
ty-seven of this chapter.
Sec. SO. The liability OF a person who is
co-debtor with or guarantor, or in any
manner surety, for person who has been
adjudged insovent and thereafter been
discharged, shall not be abridged or alter
ed by such discharge.
Sec 53 An insolvent shall be deemed TO
have given a preference. If, being insolv
ent or i'm contemplation of insolvency. he
has suffered or procured judgment to be
entered against himself. or made a trans
fer of any or all of his property or estate
or suffered any part thereof TO be taken
or levied upon by process of law or other
wise, or any lien 10 be obtained thereon,
with intent to defeat the provisions OF
this chapter, or to enable any one or
more of his creditors TO obtain a prefer
ence Any preference given within four
months before the filing of the petition III
insolvency by or against person here
under may be avoided by the assignee
and he may recover the property. or the
amount of the preference, from the person
obtaining such preference, provided such
person or his agent knew, or had reason
able cause to know or believe that such
preference was given in violation OF the
provisions Of this chapter.
OF CONTINUING THE BUSINESS.
Sec s. The court may. whenever II
deems il for the best interest of the in
solvent estate so TO do, upon the appli-
cation Of any party I'm interest, after no.
tice to all parties who have appeared in
the proceedings from time to time, au-
thorize and direct the assignee to continue
and carry on at the risk of the insolvent
estate, pending the sale OF the assets and
the settlement OF the estate. for such
period and i'm such manner il may pre-
scribe, any mercantile, manufacturing, or
other business which may be in operation
and form a part of the assets of the in
solvent estate at the time of the adjudi
cation in insolvency; and II may from
time 10 time authorize and direct the as
siC%1ee to borrow, on the credit OF the
estate. any necessary money TO an amount
specified by IL, to carry on such business,
and to give his obligations as assignee
therefor. Such obligations shall be pre-
ferred lien against such estate. and shall
he paid therefrom before any dividend is
paid. There shall be no personal liability
imposed on the assignee by any action
which he may lawfully take under the
provisions of this section.
OF DIVIDENDS, DISTRIBUTION, AND
FEES
Sec 55. A dividend OF an equal per
centum shall be declared by the register
on all allowed claims, except such claims
as have priority, within thirty days after
the adjudication of insolvency. IL the
money belonging TO the estate. in excess
of the amount necessary 10 pay the claims
and debts which have priority, equals five
per centum or more OF all known claims
not having priority. Dividends. subse-
quent to the first. shall be declared upon
like terms as the first and as often as the
amount shall equal ten per centum or
more Of all known claims not having pri-
ority. and upon winding up the estate.
Dividends may be declared oftener If the
court shall so order.
Sec. 56. The rights OF creditors who have
received dividends. or I'm whose. favor
final dividends have been declared. shall
not be affected by the proof and allow
ance OF claims subsequent to the date of
such payment or declarations OF divi-
dends; but the creditors proving and Sc
curing the allowance Of such claims shall
be paid dividends equal in amount TO
those already received by the other cred.
itors If the estate equal so much. before
such other creditors are paid any further
dividends.
Sec. 81. Dividends which remain un-
claimed for six months after the final div
.dend has been declared. shall be paid by
the assignee into the registry OF the su-
perior court. Unclaimed dividends re-
naming in such registry for the space OF
six years shall. under the direction OF the
court, be paid. less expenses, TO the in
solvent.
Sec. 5s. The costs and expenses OF ad
ministration in proceedings under this
chaptsy, including registers and clerks
compensation and expenses the expenses
and compensation OF the assignee and
the reasonable fees Of his counsel and at
torney. shall be first paid in full out OF
the insolvent estate. In the order named.
Sums due to the United States. to the
state Of Rhode Island 90 any town or
municipality in said state. and for the
NJ labor t.arfoVrna1 within gix