HERBERT R. O'CONOR, GOVERNOR. 499

prescribed by the Board, shall bear interest at the rate of 1
per centum per month from and after such date until pay-
ment plus interest is received by the Board. Interest collected
pursuant to this sub-section shall be paid into the unemploy-
ment compensation fund.

(b) Collection. If, after due notice, any employer defaults
in any payment of contributions or interest thereon, the
amount due shall be collected by civil action in the name of
the State, and the employer adjudged in default shall pay
the costs of such action. Civil actions brought under this
section to collect contributions or interest thereon from an
employer shall be heard by the court at the earliest possible
date and shall be entitled to preference upon the calendar of
the court over all other civil actions except petitions for
judicial review under this Act and cases arising under the
workmen's compensation law of this State. The Board may
proceed in the collection of contributions in the manner pre-
scribed by Sections 145 to 150, inclusive, of Article 81 of the
Annotated Code of Maryland, 1935 Supplement.

(c) Priorities Under Legal Dissolutions or Distributions.
In the event of any distribution of an employer's assets pur-
suant to an order of any court under the laws of this State,
including any receivership, assignment for benefit of credi-
tors, adjudicated insolvency, composition, or similar proceed-
ing, contributions then or thereafter due shall be paid in full
prior to all other claims except taxes and claims for wages
of not more than |250 to each claimant earned within six
months of the commencement of the proceeding. In the event
of an employer's death, claims for contributions shall be al-
lowable against his estate as preferred debts, as in the case of
taxes under Section 142, sub-section (c), of Article 81 of the
Annotated Code of Maryland, 1935 Supplement. In the event
of an employer's adjudication in bankruptcy, judicially con-
firmed extension proposal, or composition, under the Federal
Bankruptcy Act of 1898, as amended, contributions then or
thereafter due shall be entitled to priority as a tax, as pro-
vided in Section 64 (a) of that Act (U. S. C. A., Title 11, sec.
104 (a), as amended.

(d) Refunds. If not later than two years after the date
on which any contributions or interest thereon become due,
an employer who has paid such contributions or interest
thereon shall make application for an adjustment thereof in
connection with subsequent contribution payments, or for a
refund thereof because such adjustment cannot be made, and
the Board shall determine that such contributions or interest
or any portion thereof was erroneously collected, the Board
shall allow such employer to make an adjustment thereof,