HARRY HUGHES, Governor

1369

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.

CHAPTER 490

(Senate Bill 834)

AN ACT concerning

Priorities in Insolvency

FOR the purpose of altering the priority of creditors for
property of an insolvent; correcting a cross—reference;
and adding a new creditor to priority system.

BY repealing and reenacting, with amendments,

Article — Commercial Law
Section 15-102(b)
Annotated Code of Maryland
(1975 Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article — Commercial Law

15-102.

(b) The property of an insolvent who makes an
assignment for the benefit of creditors or who has his
property taken by a receiver under a decree of a court in an
insolvency proceeding shall be applied to the following, in
the order stated:

(1)   Costs and expenses of the administration of
the trust or insolvency proceeding which the court approves;

(2)   Wages of an employee and health, welfare,
and pension contributions contracted for in place of wages,
earned not more than three months before the assignment or
institution of the insolvency proceeding;

(3)   Lien claims of the State, a county,
municipal corporation, or other political subdivision of the
State perfected or recorded before the assignment or
institution of the insolvency proceeding, and claims of
persons having judicial liens on property of the insolvent
recorded more than four months before the assignment or
institution of the insolvency proceeding;