644

LAWS OF MARYLAND.

New section.

Article 23 of the Code of Public General Laws, title "Corpo-
rations," sub-title "Dissolution of Corporations," to follow sec-
tion 264, to be designated as "Section 264 A," and to read as
follows :

Unlawful
convey-
ances by
insolvent
corpora-
tions.

264 A. Whenever any corporation mentioned in section 264
of this article other than railroad companies chartered by this
State, shall have been determined or proven to be insolvent, as
in said section 264 stated, all payments, conveyances andi
assignments of the money, property, debts or claims of said
corporation and all preferences, howsoever made by it or by
any of its officers on its behalf which would be void or fraudu-
lent if the same had been made by a natural person who had
become an insolvent under Article 47 of the Code of Public
General Laws, shall, to the like extent and with like remedies,
be fraudulent and void when made by such corporation or by
any of its officers on its behalf, and whenever any such corpo-
ration shall have been adjudged to be dissolved as provided in
the next preceding section of this article, all of its property
and assets of every des3ription shall be distributed to the
creditors of said corporation in the same manner that the
property and assets of an insolvent debtor are distributed under
the provisions of Article 47 of the Code of Public General
Laws, but no discharge shall be granted to the said corporation,
and the receiver of such corporation shall have the same power
and authority to maintain suits and proceedings, to set aside
preferences and void or fraudulent transfers and payments,
conveyances and assignments by said corporation or by any of
its officers on its behalf in the same manner and to the same
extent as the permanent trustee of an insolvent debtor has
under Article 47 of the Code of Public General Laws, in
reference to preferences and void or fraudulent transfers, pay-
ments, conveyances and assignments, when made by a natural
person who has become an insolvent debtor, and the date of
the filing of the bill against such corporation, upon which it
may be dissolved, shall be taken and treated for the purpose of
determining the validity of preferences and for all other pur-
poses as the date of the filing of the petition in insolvency by
or against a natural person.

Effective.

SEC. 2. And be it further enacted, That this act shall take
effect from the date of its passage.

Approved April 4, 1896.