|
WILLIAM SMALLWOOD, Esq; Governor.
rendered for any sum, shall be a lien on the lands of the debtor, so
as to be
preferred in such distribution, nor shall any process against goods or
lands be
preferred on such distribution, except writs of fieri facias, actually
and bonâ fide
executed before the debtors application for relief as aforesaid; and
the chancellor
may, from time to time, make such orders respecting the conduct of
such trustee or trustees, and may remove any trustee for misbehaviour,
and appoint
another in his place, as justice may require. |
1787.
CHAP.
XXXIV. |
VII. And be
it enacted, That any trustee or trustees may, if necessary,
sue in his or their own name or names for the recovery of any property
or
debts belonging to such debtor, and conveyed, transferred or assigned,
to such
trustee or trustees, agreeably to this act. |
Trustee may
sue in his own
name, &c. |
VIII. And,
to prevent collusion between debtors and their creditors, and
expedite the adjustment and distribution of insolvents estates, Be
it enacted,
That the chancellor may, by order, limit and appoint the time for creditors
to bring in and declare their claims, and may examine such creditor, and
also
the debtor, on oath, touching the same, and on any contested claim may,
if
he thinks proper, order the same, or any fact concerning the same,
to be tried
on an issue framed for that purpose, and the chancellor may, in his discretion,
perceiving the debtor is not likely to be entitled to a surplus, order
that he be
allowed and received as a witness on the trial of any such issue as aforesaid,
and the chancellor may order any of the produce of the insolvent's estate
to
be set apart and retained for the eventual satisfaction of any contested
claim,
or to be brought again into distribution; and if any creditor to whom a
real
debt is due and owing, shall collude and contrive with the debtor to gain
an
undue preference in the satisfaction of his debt, or for concealment of
any
part of the debtor's estate or effects, or shall contrive or concert any
acknowledgment
of the debtor by parole or in writing, or any kind of security, to
give false colour to his claim for more than is bonâ fide due,
such creditor
shall lose his debt truly due, and shall be totally excluded in the distribution. |
Chancellor to
limit the time
for bringing
in claims, &c. |
IX. And be it
enacted, That if any creditor, on the application of any such
debtor to the chancellor as aforesaid, or at any time within two years
thereafter,
shall allege in writing, that such debtor hath, directly or indirectly,
sold, lessened, or otherwise disposed of, in trust, or concealed any part
of his
property of any kind, or any part of his debts, rights or claims, whereby
to
secure the same, or to receive or expect any profit, benefit or advantage,
thereby, or to deceive or defraud his creditors, the chancellor shall thereupon
stay all proceedings, and may examine such debtor on interrogatories, on
oath
or affirmation, for the discovery of his property, or any concealment thereof,
and respecting his conduct touching the same, or the chancellor may, in
his
discretion, direct an issue to be tried in the general court, or the county
court
where such debtor resides, to determine the truth of any allegation made
by
such creditor, and if such debtor shall be found guilty of any wilful fraud
or
deceit of his creditors, he shall for ever be precluded from having any
benefit
of this act, and any property by him conveyed in trust for his creditors,
shall
remain and belong to them, and he shall be liable to them for any balance;
and if any debtor, who shall take the oath or affirmation by this act directed,
shall, upon indictment, be convict of wilfully, falsely and corruptly,
swearing
or affirming to any matter or thing in such oath or affirmation contained,
such
person shall suffer as in case of wilful and corrupt perjury, and likewise
be liable
to his creditors, and shall have no relief by, or benefit of, this act. |
And in case
of fraud stay
all proceedings,
&c. |
X. And be it
enacted, That if any debtor shall prefer any of his creditors,
except securities, who have bonâ fide become such before the
passing of this act,
such preference shall be void in law and equity, and any money paid, or
property
given, in preference, shall be received by the trustee or trustees of such
debtor |
No preference
shall be
given, &c. |
|
 |
