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The Annotated Code of the Public General Laws of Maryland, 1939
Volume 379, Page 2031   View pdf image (33K)
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INSOLVENTS 2031

and require him to show cause in not less than five nor more than ten days
why such adjudication shall not be made; upon any issue of fact which may
arise out of said petition and answer, either party shall be entitled to a trial
by jury, but the parties to said cause may waive the jury trial and be heard
by the court on the issue of fact, and the trial shall take place at the term
during which the petition was filed and as speedily as may be; and if the
petition be filed in any circuit court for any county during the term and
whilst the jury shall be in attendance thereon, the court shall not discharge
the petit jury until the parties to said petition, shall file their waiver of a
jury trial, as hereinbefore provided; and if the petition be filed in any such
court after the jury has been discharged for the term, the court or any judge
thereof, shall, upon the demand of a jury trial by either party as aforesaid,
order the sheriff to summon a special jury, which shall be convened in not
less than five nor more than ten days from the date of such order, to 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 determination of the application for such
adjudication and pending any question of the validity of any preference by
mortgage, judgment or otherwise, and of any gift, sale, assignment, convey-
ance 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
preference 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, dis-
posing of, or in any way interfering with said property or estate, until the
question of adjudication shall have been determined, and may issue such
other orders upon such terms and conditions as the court may deem neces-
sary 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 sustained the respondent shall recover a judgment for costs against
the petitioner; and if the allegations be sustained and are sufficient to war-
rant 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 ap-
proved, 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
mentioned, 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; Schiff 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.


 

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The Annotated Code of the Public General Laws of Maryland, 1939
Volume 379, Page 2031   View pdf image (33K)
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