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INSOLVENT LAWS.

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Second, third, and other meetings of the creditors. The second meeting is called by the assignee, on the order of the commissioner, and must be within three months after the issuing of the warrant; at which meeting debts may be proved, and the debtor may amend the schedule of his creditors, and correct any mistake therein. This schedule is then sworn to by the debtor, and he also swears that he has delivered all his property of every description, (except such as is exempt from attachment,) to the assignee; and that if any property shall thereafter come into his hands which ought to go to the benefit of his creditors, he will deliver the same to the assignee.

The third meeting must be within six months from the appointment of the assignee, at which meeting debts may be proved; the assignee submits his accounts, and a dividend of the balance in his hands is ordered by the commissioner, among the creditors who have proved their claims.

If any funds remain in the hands of the assignee, then a fourth meeting is to be called within eighteen months after his appointment, and a dividend made, which shall be final, unless there are some outstanding debts, which could not be collected within that time. If, after the payment of the debts proved, any surplus remains, it is to be paid to the debtor.

Privileged debts, or debts to be paid in full. - Debts due to the United States and the Commonwealth : debts not exceeding twenty-five dollars, due to operatives for labor performed in the service of the insolvent, within sixty-five days before the insolvency: and the legal costs in any suit, where an attachment is made, and afterwards dissolved by the insolvency of the debtor : are all to be paid in full, before any dividend is declared.

Debtor how and when discharged, what may prevent his discharge, or render a discharge void. No insolvent debtor, whose assets do not pay fifty per cent. of the claims proved against his estate, shall receive a discharge, unless a majority in number and value of his creditors, who have proved their claims, shall assent

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thereto, in writing, within six months after the date of the assignment; and in no case shall a certificate of discharge be granted until the third meeting of the creditors of such debtor, nor at any time, except at a meeting of the creditors; and such discharge shall be null and void if the debtor, or any person in his behalf, shall have procured the assent of any creditor thereto, by any pecuniary consideration.

No discharge of a debtor shall be granted or valid, if said debtor shall be a second time insolvent, and the assets of his estate shall fail to pay fifty per cent. of the debts and claims proved against him, unless threefourths, in value, of the creditors whose claims are proved, shall assent thereto in writing. And if said debtor shall be a third time insolvent, no discharge shall be granted him.

No discharge of any debtor shall be granted, or valid, if the debtor, when insolvent, shall, within one year next before filing of the petition, by or against him, pay or secure, either directly or indirectly, in whole or in part, any borrowed money or pre-existing debt, or any liability of his or for him, if the creditor proves that, at the time of making said payment, or giving said security, the debtor had reasonable and sufficient cause to believe himself insolvent

No certificate of discharge shall be granted, or, if granted, shall be of effect, if a debtor, within six months before the filing of the petition, by or against him, procures his lands, goods, moneys or chattels to be attached, sequestered, or seized on execution, or, being insolvent, or in contemplation of insolvency, shall, directly, or indirectly, make any assignment, sale, transfer, or conveyance, either absolute or conditional, of any part of his estate, real or personal, intending to give a preference to a pre-existing creditor, or to any person who is or may be liable as indorser or surety for such debtor, unless said debtor shall make it appear that, at the time of making such preference, he had reasonable cause to believe himself solvent; and all preferences so made, are void, if the creditor accepting such preference had reasonable cause to believe the debtor insolvent.

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Every certificate of discharge granted to a debtor, shall be of no effect, if he has wilfully sworn falsely as to any material fact in the course of the proceedings, or if he has fraudulently concealed any part of his estate or effects, or any books or writings relating thereto; or if he has in contemplation of becoming insolvent, and of obtaining a discharge, made any payment, or any assignment, sale or transfer, either absolute or conditional, of any part of his estate, with a view to give a preference to any creditor, or to any person who is or may be liable as an indorser or surety for such debtor, or to any other person who has or may have any claim or demand against him: provided, that this clause shall not apply to any security given for the performance of any contract, when the agreement for such security is part of the original contract, and the security is given at the time of making such contract. And all such payments, assignments, sales and transfers, shall, as to the other creditors of such debtor, be void; and the creditor so preferred, if he shall have accepted such payment or security, knowing that the same was made or given by the debtor contrary to the provisions of this section, shall not be allowed to prove the debt thus preferred.

Allowance to be made debtor for support of family.

The debtor receives one dollar a day from the assignees, for his attendance on them or the commissioner, when his attendance is required. He is also allowed, out of his estate, for the necessary support of himself and family, such sum, not exceeding the rate of three dollars per week, for each member of his family, and for such time, not exceeding two months, as the commissioner shall order.

Claim for necessaries furnished to debtor, not barred by his discharge, unless such claim has been proved against his estate.

[For Fees of Commissioners of Insolvency, see Part V.]

IMPRISONMENT FOR DEBT. - POOR DEBTOR'S OATH. (Laws, R. S. c. 90, 97, 98; 1837, '47, '48.)

When debtor may be arrested.-No person can be arrested and imprisoned for any debt less than ten dollars, exclusive of costs. And no debtor can be arrested on mesne process, unless the creditor make affidavit that the debt is justly due, and that he has reasonable cause to believe that the debtor is about to depart beyond the jurisdiction of the court, and not to return until after judgment is rendered in the suit.

It will be seen that this statute applies only to cases of contract, and that a party may be arrested in all actions for wrongs and injuries, without any affidavit.

Females exempt from arrest, except, &c. -No female can be arrested for any debt, except on a judgment against her as a trustee, for the sum of ten dollars or more, in a process of foreign attachment.

Debtor imprisoned how to be supported, if a pauper. -When a debtor, claiming support as a pauper, is confined in close prison on execution, or on mesne process, he must be supported at the expense of the creditor, at the rate of $125 per week, so long as he is kept in close confinement on that suit.

If the creditor, upon being requested by the jailer, neglect for twenty-four hours to give security, or advance the money for his board, the jailer may discharge the debtor.

The debtor may be discharged whenever all the money advanced shall have been expended.

When bail are liable for support of debtor, and how long.-Where a pauper debtor is surrendered by bail, and committed to close prison, he is entitled to support at the expense of the bail. The bail, however, by giving notice to the creditor of such surrender, may be released from his liability after seven days. The body of a debtor thus discharged, is not again liable on the same debt.

Bond to surrender within thirty days.-Persons in prison, when final judgment is rendered, may be discharged by giving bond with sureties to the creditor, in

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double the amount of the judgment, to be approved by two justices, conditioned that he will surrender himself at the prison within thirty days. The officer who has the execution, may within that time leave said execution, or a copy, with the jailer, and he is then to commit the debtor on his surrender. Debtors surrendered by their bail, may be released in the same manner.

Goods and estate of the debtor to continue liable after his discharge, but he cannot be again arrested. When a debtor is discharged, the debt, costs, charges, &c., shall remain a claim against him, but his body shall never again be liable to arrest or imprisonment on the same debt, costs, or charges.

A Debtor, having prison limits, cannot claim support as a pauper.

Bonds for the liberty of the yard.-Any person committed on execution in any civil action, is entitled to the prison limits, on giving bond with sufficient sureties, to continue a true prisoner within those limits for ninety days, and then surrender himself to go into close confinement, unless previously discharged by order of creditor, or by operation of law.* No one is allowed the privilege of the limits at any time after ninety days from the day of his commitment.

The jail limits extend to the boundaries of the county within which the action is brought.

Poor debtor's oath. Whenever any person shall be arrested for any debt; or whenever any person shall have been so arrested, and have given bail, or been committed to jail; or shall have been committed to jail on surrender, in court or otherwise, by his bail in the suit, he may, at any time after his arrest and commitment, give notice, in writing, to any justice of the peace in the county where the arrest was made, that he is desirous to take the benefit of the laws for the relief of poor debtors; - or he may make the same known to the officer making the arrest, or to the jailer, whose duty it becomes to make the same known to some justice of the peace for the county, who shall

* Should the ninety days expire, and the above requirements not have been complied with, the bail will be liable fordebt and costs.

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