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The Annotated Code of the Public Civil Laws of Maryland, 1911
Volume 372, Page 1224   View pdf image (33K)
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1224 INSOLVENTS. [ART. 47

hear and determine the question of fact between the parties; provided
that the said petition shall be filed more than thirty days prior to
the beginning of a new term of said court, and pending the determina-
tion of the application for such adjudication and pending any ques-
tion of the validity of any preference by mortgage, judgment or other-
wise, and of any gift, sale, assignment, conveyance or transfer or
removal of all or any part of the property of the debtor with intent
to hinder, delay or defraud his creditors, or to give an unlawful prefer-
ence to any creditor, endorser or surety, the court or any judge thereof
shall, on the application of the petitioner, issue an order in the nature
of an injunction to restrain the debtor and the mortgagee, judgment
creditor, donee, vendee, assignee, grantee or other person having the
custody or claiming the title to any property or estate of the debtor,
from selling, disposing of, or in any way interfering with said prop-
erty or estate, until the question of adjudication shall have been deter-
mined, and may issue such other orders upon such terms and condi-
tions as the court may deem necessary for the preservation and safe
keeping of the property in controversy; and the court shall possess
the power to allow any amendments necessary to present the rights
of the matter If the allegations of the petitioner shall not be sus-
tained the respondent shall recover a judgment for costs against the
petitioner; and if the allegations be sustained and are sufficient to
warrant the same, an adjudication shall be made by the court that the
debtor is insolvent, and therefore, and by virtue of the adjudication
his right and power to dispose of any part of his estate and property
shall cease; and when the court shall have appointed a preliminary
trustee, all such estate and property shall, as soon as the bond of
such trustee shall have been approved, be divested out of the insolvent
and be vested in the trustee; and thereafter the same proceedings shall
be had as hereinbefore prescribed in relation to persons who shall
apply for the benefit of the provisions of this article; and the said
debtor shall thereupon immediately execute the schedule and lists of
debts, verified by his affidavit, as provided by section 1 of this article,
and the debtor shall be entitled to his discharge from all debts and
contracts made before the filing of the petition in this section men-
tioned, and in the same manner and to the same extent and with the
same exception, as though he had made application, as provided in
section 1 of this article.

Petition, replication and issues.

Requisites of the statement of facts in the petition. Whyte v. Betts
Machine Co., 61 Md. 177; Schlff v. Solomon, 57 Md. 584.

For allegations which, if proved, render the debtor liable to be proceeded
against under this section, see Cator v. Martin, 57 Md. 400.

How the petition by a non-resident corporation should be authenticated
both when filed and before adjudication; proof of corporate existence need
not be filed with the petition though it ought to be produced before the
adjudication. Whyte v. Betts Machine Co., 61 Md. 177.

The petition may be filed by a non-resident. Brown v. Smart, 69 Md. 328
(affirmed in 145 U. S. 457).

 

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The Annotated Code of the Public Civil Laws of Maryland, 1911
Volume 372, Page 1224   View pdf image (33K)
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