Year: 1867

PUBLIC-No. 81.


! AN ACT to establish uniform system of bank
ruptcy throughout the United States.


OF sUPRRsEDiNG THE BANKRUPT PROCEEDINGS BY


ARRANGEMENT.


Sec. 43. ARd be it further enacted, That if at
the first E1eetng OF creditors, or at any meeting Q
of creditors to be specially called for that pur-
pose, and of which previous notice shall have
been given for such length of time and in such
manner as the court may direct three fourths
in value of the creditors whose claims have been
proved shall determine and resolve that it is for
the interest of the general body of the creditors
that the estate of the bankrupt should be wound
up and settled, and distribution made among
the creditors by trustees, under the inspection
and direction of committee Of the creditors


it shall be lawful for the creditors to certify and
report such resolution to the court, aud to~nom,
mate one or more trustees TO take and hold and
distribute the estate, under the direction of such
committee. If it shall appear to the court, after
hearing the bankrupt and such creditors as may
desire 10 be heard, that the resolution was duly
passed and that the interest of the creditors will
be promoted thereby, it shall conlrm the same !;
and upon the execution and filing, by or on De,
half OF three fourths in value of all the creditors
whose claims have been proved, of a consent that
the estate of the bankrupt be wound up and set,
tied by said trustees according to the terms of
such resolution, the bankrupt or lis assignee
in bankruptcy, ifappointed, il the may be,
shall, under the direction of the court and under
oath, convey, transfer, and deliver all the prop,
ery and estate of the bankrupt to the said truss
tee or trustees, who shall, upon such conveyance
and transfer, have and hold the same in the same
manner, and with the same powers and rights
i'll all respects, the bankrupt would have had
or held the same if no proceedings in bankruptcy
had been taken, or as the assignee in bankruptcy
would have done had such resolution not been
passed and such consent and the proceedings
hereunder shall be as binding in al respects
on any creditor, whose debt is provable, who has
not signed the same, as if he had signed it, and
on any creditor whose debt, if provable, is not
proved, as if he bad proved it; and the court,
by order, shall direct all acts and things needful
to be done to carry into effect such resolution of
the creditors, and the said trustees shall proceed
to wind up and settle the estate under the direc-
ton and inspection of such committee of the
creditors, for the equal benefit of all such cred
itors, and the winding up and settlement of any
estate under the provisions of this section shall
be deemed to be proceedings in bankruptcy un-
der this act; and the said trustees shall have all
the rights and powers of assignees in bankrupt
cy. The court, on the application of such trus-
tees, shall have power to summon and examine;
or on oath or otherwise, the bankrupt and any
creditor, and any person indebted to the estate,
or known or suspected OF having any OF the estate
in his possession, or any other person whose ex>
animation may be material necessary to aid
the trustees in the execution of their trust, and
to cempel the attendance of such persons and
the production of books and papers in the same
manner as in other proceedings in bankruptcy
under this act and the bankrupt shall have the
like right to apply for and obtain discharge
after the passage If such resolution and the Gp-
pointment of such trustees as if such resolution
had not been passed, and as if all the proceed
ings had continued in the manner provided in
the preceding sections of this act. If the reso-
luton shall not be duly reported, or the consent
of the creditors shall not be duly filed, or if up
on it's filing, the court shall not think fit to ap-
prove thereof, the bankruptcy shall proceed
thoug no resolution had been passed, and the
court may make all necessary orders for resum
ing the proceedings. And the period of time
which shall have elapsed between the date of
the resolution and the date of the order for assu-
ming proceedings shall not be reckoned in cal
culatinp periods of time prescribed by this act.