Year: 1865

a sdA t, a,so CHAPTER XIV. iHGI

 An Act relating to Compromises or Compositions

 by Partners and Joint Debtors

 Be ft sndcted 5y ths .Senafe aud Hoase of Repre- sentatites n Gs,israi Assembly convsaed: |3dSEC I! That whenever any co-partnership firm shall be dissolved by mutual consent Of otherwise. any one or moro of the individuals who was or were embraced in such co-partnership firm, may make a separate composition. or compromise with any or all of the creditors of such partnership firm and any such composition or compromise shall be full and efectual discharge to the debt or Or debtors making the same, and to him or them only of and from all and every liability to the creditors with whom the same fs made or in cured, by reason of his or their connection with such co o-partnership firm. siE Io b9snA .SEc.2 2 Every such debtor or debtors, making such composition or compromise, shall take from the creditor or creditors with whom he or they make the same, a note or memorandum in wri- ting exonerating him or them from all and every individual liability incurred by reasons of such connection with such apprenticeship firm, which note or memorandum may be given in evidence by such debtor or debtors under the general issus in bar of such creditors right of recovery against him or them tr;,li .l 7[rhi4 iJaEi 1T

 SEC, 3, Such compromise or composition with an individual member of firm shall not be so construed as to discharge the other co partners, nor shall it impair the right of the creditors to proceed at law or in equity against the members of such co-partnership firm who have not been discharged 7 and the member or members of such 60 partnership firm, so proceeded against, shall be permitted to set off any demand against said creditor. or creditors, which could have been set off had such suit been brought against all the in diYidnals composing such firm nor shall such compromise or discharge of an individual of a firm, prevent the other members of such firm from availing themselves of any defense at law or equity that would have been available if this act was not passed except that they shall not set up the discharge of one individual as @ dis charge of the other co-paitners unless it shall appear that all were intended to be discharged. Y SEc.4 Such compromise and composition of an individual of firm with a creditor of such firm, shall in no way affect the legal obligations of the co-partners each to the other, but they shall remain liable to account for the affairs of their partnership in the same manner as if this act had not been passed Provided, that any individual of a fem who may compromise or compound with a creditor thereof, shall be allowed, in accounting with his co-partners such sum as he shall have paid to such creditor,

 SEC. 5. The provision of this act with refer- ence to co, partners, shall extend to joint debt ors, who are authorized indi vidually to com pound or compromise for their joint indebtedness with like effect in reference to creditors and to joint debtors of the individuals so compromising or compromising, as is provided in this act in re- ference to CO., partners.

 Approved, June P, 1865. .,.. --rgy