Rensselaer Union, Volume 6, Number 41, Rensselaer, Jasper County, 2 July 1874 — The Bankrupt Law. [ARTICLE]

The Bankrupt Law.

The principal provisions of the new Bankrupt law passed by Congress are as follows; Forty days are allowed to elapse before a merchant or trader who fails to pay his commercial paper is liable to- be thrown into bankruptcy- The assent of one-fourth in number and one-third in value of the creditors is required to throw a debtor into bankruptcy. I‘his provision relates back to the first of last December. Proceedings may be discontinued whenever the debtor pays those secured debts which were the ground of throwing him into bankruptcy, or whenever the consent of the court can he obtained and a majority of tlie creditors shall ask for a discontinuance of the proceedings. In order to set aside hypothecated pledges or loans on the bankrupt’s estate, it must appear that the party dealing with the bankrupt knew that lift intended to perpetrate a fraud on the Bankrupt law, and that he intended to go into bankruptcy. When a loan is made to a "bankrupt in good faith, and security taken, with the intention of aiding him to pttll through, it shall be considered as having act ual value, and the security shall not be invalidated by proceedings in bankruptcy. A voluntary bankrupt may have bis discharge if his estate pays 30 per cent, of his debts, or provided he obtains the consent of the same number of his creditors as is necessary to throw him into bankruptcy. An involuntary bankrupt can get his discharge if his conduct is free from all fraud and he is innocent of any violation or infringement of the Bankrupt act. Assignees aTe prohibited from dividing fees witli other persons engaged in the case. Compromise fry creditors may be made with the assent of the debtor, providing a majority of the creditors join, when approved by the court, for the release and discharge of tlie debtor. The fees and expenses are reduced one-half until the Judges of the Supreme Court shall establish a permanent reduction and simplify the proceedings. All the acts of the persons connected with the execution of the law shall he made public in the full and minute reports from the Clerk, the assignee, the Marshal and the Register. Original jurisdiction is conferred upon the Territorial Courts, with an appeal to the Supreme Court off the Territory.