Year: 1867

for adjudication was filed by Tor aSalnst) MN !,
excepting such debts, if any, as are by SAID act
excepted from the operation of a discharge IN
bankruptcy Given under my hand and the sea- sea-
of the court at , in the said district, this


day Of "A b., ~


sEJ. 81 And be it further enacted, That no
debt created by the fraud or embezzlement OF the
bankrupt, or by his defacation as public ofhcer,
or while acting in any tiduciary character shall
be discharged under this act but the debt may
be proved and the dividend thereon shall be a
payment on account of said debt ; and no as
charge granted under this act. snail reieaSe, cas- uls,
charge, affect any person liable 1of the slilie
debt tor or with the bankrupt, either us partner,
joint contractor, endorser, surety, or ciWlse;
And in all proceedings in bankruptcy commenced
after one wear from the time this act snail go IN
to oneration no discharge shall be granted to q
debtor whose assets do not pay t!ty per centum
of the claims against his estate, unless the assent
in writing of majority in number and value OF
his creditors who have proved their claims is filed
in the ase at or before the time of application
for discharge.


SEC. 81. Aud be it further enacted, That a
discharge duly granted under this act shall, with
the exceptions aforesaid, release the bankrupt
from all debts, claims, liabilities, and demands
which were might have been proved against
his estate i'll bankruptcy, and may be pleaded by
a simple avcrment that on the day OF It's date
such discharge was granted to him, setting the
same forth in h9c verba, us tull ana complete
bar to all suits brought any such debts, claims,
liabilities, or demands, and the certllcatc snail





of the fact and 1.-THE regularity of such discharge
Provided, That any creditor,o or creditors OF SAID
bankrupt, whose debt was proved or proVable
against the estate in bankruptcy, who shall see mt to
contest the validity of said discharge on the ground
that it was fraudulently obtained, may, at any
time within two years after the date thereof, ap-
ply to the court which granted it to set aside and
annul the same. Said application shall be in
writing, shall specify which, in particular, Of
the several acts mentioned in section twcnty-nlne
it is intended to give evidence of against the
bankrupt, setting forth the grounds of avoidance
and no evidence shall be admitted as to any
other of the said acts but said application shall
be subject to amendment at the discretion of the
court. The court shall cause reasonable notice
of said application to be given to said bankrupt
and order him to appear and answer the same,
within such time as to the court shall seem lit
and proper. If, upon the hearing of said par
ties, the court shall find that the fraudulent acts
or any of them, set forth aforesaid by said cred
itor or creditors against the bankrupt, proved
and that said creditor or creditors had no knowl-
edge of the same until after the granting of said
discharge, Judgment shall be given in favor of
said creditor or creditors, and the discharge of
said bankrupt shall be set aside and anuulied.-
But if sal court shall find that said fraudulent
acts, and all of them, set forth as aforesaid are
not proved or that they were known to said cred
itor or creditors before the granting of said dis
Charge then Judgment shall be rendered in favor
of the bankrupt, and the validity of his discharge
shall not be affected by said proceedings.


PREFERENCES AND FRAUDULENT CoNvEYANCEs


DECLARED VOID.


SEC. 35. and be it fu2the7 enacted, That if any
person being insovent in contemplation OF
Insolvency, within four months before the filing
of the petition by or against him, with view to
give preference to any creditor or person having
q claim against him, or who is under any liabl-
lty for him, procures any part of his property to
be attached sequestered, or seized on execution
or makes any payment, pledge, assignment
transfer, conveyance of any part of his prop
erty either directly or indirectly, absolutely or
condtionally, the person receiving such payment,
pledge, assignment, transfer or conveyance or
to be benefited thereby, or by such attachment,
having reasonable cause to believe such person
is insUlyent, and that such attachment, payment
pledge, assignment, or conveyance is made in
fraud of the provisions of this act, the same shall
be void, and .he assignee may recover the prop
erty, or the value of it, from the person so re-
ceiving it, or so to be benetittcd and if any per-
son being insolvcnt, or in contemplation of in
solvercy or bankruptcy, within six months be-
fore the filing of the petition by or against him,
makes any payment, sale, assignment, transfer,
conveyance or other disposition of any part of
his property to any person who then has reason
able cause to believe him TO be insolvent or to
he acting in contemplation of insolvency, and
that such payment, sale, assignment transfer, or
other conveyance is made with view to prevent
his property from coming to his assignee in
bankruptcy, or to prevent the same from being
distributed under this act, to defeat the object
of, or in any way impair, hinder, impede, or de-
lay the operation and effect of TO evade any of
The provisions of this act, the sale, assignment,
transfer, or conveyance shall Ge void, and the
assignee may recover the property or the val
ue thereof, assets Of the bankrupt. And
if such sale, assignment, transfer, or convey
is not made in the us ual and ordinary course
of business of the debtor the fact shall be prma
facic evidence OF fraud. Any contract, covenant,
or security made or given By bankrupt or other
person with, or in trust for, any creditor, for
curing the payment of any money as q cOnsdera-
ton FOR or with the intent to induce the creditor
to orbear opposing the application for discharge
of the bankrupt, shall be void; and if any crcdi-
hall ,NF,,
chattels, security from any person an induce
ment for forbearing to oppose, Or cOnsenting to
such application for discharge every creditor
offending shall forfeit all right to any share or
dividend in the estate of the bankrupt, and shall
also forfeit double the value or amount of such
money, goods, chattels, or security so obtained
to be recovered by the assignee for the benefit of
the estate.


BANKRUPTCY OF PARTNERSHIPS AND OF CoRPoR-


ATIONS.


SEC. Sc. And be 1t further enacted, That where
two or more persons who are partners in trade
shall be adjudged bankrupt, either on the petition
of snch partners or any one OF them, or on the
petition of any creditor of the partners warrant
shall issue in The manner provided by this act,
upon which all the joint stock and property Of the
cOpartnership, and also all the separate estate of
each OF the partners, shall be taken, excepting
such parts thereof as are hereinbetore excepted
and all the creditors of the company and the Sc
parate creditors of each partner shall be allowed
to prove their respective debts and the assignee
shall be chosen by the creditors of the COMPANY
and shall also keep separate accounts of the Joint
stock or property of the cOpartnership and Of the
separate estate of each member thereof; and after
deducting out of the whole amount received by |
such assignee the whole of the expenses and dis |
bursements, the net proceeds of the Joint stock !
shall be appropriated to pay the creditors of the
copartnership and the net proceeds of the sepa- |
rate estate of each partner shall be appropriated !
to pay his separate creditors and if there shall be
any balance of the separate estate of any partner
after the payment of his separate debts such bal
ance shall be added to the joint stock for the pay
ment of the joint creditors; and if there shall be
any balance of the joint stock after payment of
the joint debts, such balance shall be divided and
appropriated to and among the separate estates of
the several partners according to their respective
right and Interest therein, and as it would have
been II the partnership had been dissolved with
out any bankruptcy; and the sum so appropra-
ted to the separate estate of each partner shall be
applied to the payment of his separate debts and
the certificate of discharge shall be granted or re-
iused TO each partner as the same would or ought
10 be II the proceedings had been against him
alone under this act; and in all other respects the
proceedings against partners shall be conducted
In the like manner as if they had been commen-
ced and prosecuted against one person alone. If
such copartners reside in different districts that
court In which the petition is first filed shall re-
taln exclusive Jurisdiction over the case.


SEC. ~. And be tJurther enacted That the nro
visions OF this act shall apply to all moneyad
business or commercial corporations and Joint
STOCK companies, and that upon the petition of
any officer of any such corporation or comnanU
cd " a Jnta a,Nfo