Year: 1867




expense of the estate, shall make and exc
cute to the new assignee all Deeds convey
ances aud assurances, and do all other law
full acts requisite to enable him to recover
and receive all the estate. And the court may
make all orders which it may deem expedi.
entto secure the proper fulfilment of the du-
ties of any former assignee, and the rights
and interests of all persons interested In the
estate. No person who has received any
preference contrary to the provisions of this
Act shall vote for or be eligible as assignee;
but no title to property, real or personal, sold.
transferred or conveyed by an assignee, shall
be affected or impaired by reason of his ineli'
gibllity. An assignee refusing or ulreasona-
oily neglecting to execute on instrument when
lawfully required by the court, or disobeying
lawful order or decree of the court in the
premises, MAY be punished as for contempt
of court.


T OF DEBTs AND PROOFS OF CLAIMS.


SEC. 10. And be it further enacted, That
all3debts due and payable from the bankrupt
at the time of The adjudication of bankruptcy,
and all debts then existing but not payable
until future day, rebate Of interest being
made when no interest is payable by the
terms Of contract may be proved against the
estate of the bankrupt. All demands against
the bankrupt for or on account OF any goods
or chatIels wrongfuly taken, converted or
withheld by him may be proved and allowed
as debts to the amount Of the value of the
property SO taken OF withheld, with interest.
II the bankrupt shall be bound as drawer.
eudorser, surety, bail or guarantor upon any
bill, bond note, or any other speciality or con.
tract, or for any debt Of another person, and
his lial lily shall not have become absolute
until after the adjudication of bankruptcy,
the creditor may prove the same after such
liability shall have become fixed, aad before
the final dividend shall have been declared.
In all cases Of contingent debts and contin-
gent liabilities contracted by the bankrupt,
and not herein otherwise provided for, the
cs9aitor may make claim therefor, and have
his claim allowed, with The right TO share in
the dividends. if the contingency shall happtn
before The order for the lilal dividend or he
may q, any time apply to the cour: to have
the present value of the debt or liability as
certained an1 liquidatcd, which shal! then be
dJns in such manner as the court Shall order,
and he shall be allowed to prove for the
amount so ascertainei. Any person liable
as bail, surety, guarantor, or otherwise Tor
the bankrupt. who shall have paid the debt,
or any part thereof, in discharge OF the whole,
shall be entitled 10 prove such debt, or TO
stand in the place Of the creditor ii he shall
have proved the sme, although such Fay
nlcnts shall have been made after the pro-
cesdmgs in bankruptcy were commenced
And any person SO liable for the bankrupt
and who has not paid the whole of said debt
but is still liable for the same or any parl
thereof, may, il the creditor shall fail or omit
t, prove such debt, prove the same either in
the name IF the creditor or otherwise, as may
b. provided by the rules, and subject to such
regulations and limitations as may be estab-
ljshcd by such rules. Where the bankrupt
is liable to pay rent. or other debt falling due
at fixed and stated periods, the creditor may
prove for proportianate part thereof up to
the time of tie bankruptcy. as if the same
grew due from day to day, and not at such
fixed und stated perio.;s. II any bankrupf
shall be liable for unliquidated damages arl'
sing out of any contracts or promise. or on
account .,f any goods or chattels wrongfuly
taken, converted or withheld, the court may
cease such damages to be assessed IN such
mode as il m,y deem best, and the sum SO
assessed may be proved against the estate.
No debts, other than those above specified,
Shall be proved or allowed agains. the estate.


SEC. 90. And be it further enacted, That,
in all ca es Of mutual debts or mutual cred
its between the parties, the account between
them shall be stated, aud one debt set OFT
against the other, and the balance only Shall
b. allowed or paid, but no set OF shall be al
lowed of claim in its nature not provabls.
against the estate; provided, that no SETON
shall be allowed in favor Of any debtor to the
bankrupt of claim purchased by or trans
f.rred 10 him after the fling Of the petition.
When creditor has q mortgage or pledge oil
real or personal property of the bankrupt, or
lien thereon for securing the payment OF @
debt owing to him from the bankrupt, he shall
be admitted as u creditor only for the balance
of the deb, after deducting the valuo of such
property, 20 be ascertained by agreement be-
tween him and the assignee, or by sale
thereof. to be made in such manner as the
court shall direct; or the creditor may re-
lease or convey bis claim to the assignee upon
such property, and De admitted to prove his
whole debt. Ii the value of the property ex-
ceeds the sum for which it is so held as se-
curity. the assignee may release to the creditor
the bankrupt's right of redemption therein on
receiving such excess or he may sell the
property, subject to the claim of the creditor
thereon and in either case the assignee and
creditor, respectively, shall execute all deeds
and writings necessary or proper TO consul
mate tho transaction. If the property IL
not so sold or released and delivered up, the
creditor shall not be allowed to prove any
part of his debt.


SEC. 81. And be it further enacted, That
no creditor proving lis debt or claim shall be
allowed to maintain any suit at law or IN
equity therefor against tho bankrupt, but
shall be deemed to have waiTed all right OF
action and suit against the bankrupt, and all
proceedings already commenced, or unsatis-
fled judgments already obtained thereon, shall
be deemed to be discharged aud surrendered
thereby; and no creditor whose debt is prov
able under this Act shall be allowed to pros
ecute to final Judgment any suit at lew or In
eouity therefor against the bankrupt, until
the question of the debtors discharge shall
have been determined; and any such suit or
proceedings shall, upon the application Of the
bankrupt, be stayed to await the determine
ton Of the Court in Bankruptcy on the ques-
ton of the discharge; provided there be no
unreasonable delay on tic part OF the bank
rupt in eudeavoring to obtain his discharge; !;
and provided, also, that if the amount due
the creditor is in dispute, the suit, by leave Of
the Court in Bankruptcy, may proceed to
Judgment for the purpose of ascertaining the
amount due, which amount may beproved in
L.. .,,ort;on.. III bo ctorod nc