6. Concealment of a security granted for a prior debt is a fraud.

7. But advancing money to a person who may become a bankrupt, and may then be insolvent, and taking a security for its repayment, is not fraudulent, unless it be done collusively, for the purpose of bestowing a preference. 2 Burr. 931.

And by the 8th section it is provided that no suit at law or in equity shall, in any case, be maintainable by or against such assignee, or by or against any person claiming an adverse interest touching the property and rights of property aforesaid, in any court whatsoever, unless the same shall be brought within two years after the declaration and decree of bankruptcy, or after the cause of suit shall first have accrued.

See for the details of the subject of this section, Owen, B. L. c. 7.

Sect. 2. Of the property which does not pass to the assignee.

[30] It will be proper to subdivide this section by considering, first, the property which will not pass to the assignee, although it may be in the hands or possession of the bankrupt; and secondly, the property of which he has parted with the possession within a limited time, or protected transactions.

1. Of property which does not vest in the assignee.

[31] Property which a bankrupt holds as trustee, or in autre droit. 1 P. Wms. 314; 1 Sch. & Lef. 328; 19 Ves. 491; 1 John. Ch. R. 450; 2 S. & S. 346; 3 Mad. R. 28; Owen, B. L. 125; 1 Leigh, N. P. 259; 4 B. & Ad. 393; 1 Mont. & Ayr. 689; 2 Mont. & Ayr. 349; 4 Dea. & Ch. 47; as executor, 4 T. R. 629; 3 Burr. 1369; 1 Atk. 101, 158; as factor, Cowp. 233; Willes, 400; 1 Salk. 160; 3 P. Wms. 187, note; Bull. N. P. 132; as broker, 1 Leigh, N. P. 261, does not pass to his assignee. Nor does the property

of another of which a bankrupt is in possession with the consent of the owner, at the time of the bankruptcy, for a specific purpose, beyond which he has not the right of disposition or alteration. 3 T. R. 316; 7 T. R. 237; 1 T. R. 370; Dougl. 317; 1 B. & C. 5; 2 Madd. R. 192; 9 B. & Cr. 749.

When goods have been purchased by the bankrupt on credit and have not been delivered to him, but have been sent on, the seller may at any time before they have been delivered, stop them in transitu, and prevent such delivery; in this case the property will not pass to the assignee. 2 Vern. 203; 3 East, R. 397; 3 T. R. 466; Cooke, B. L. 418-442. Vide Stoppage in transitu.

The third section of the act, as already noticed, (§ 26,) provides for certain goods for the benefit of the bankrupt, which, if they pass to the assignee, do not vest in him for the benefit of the creditors of the bankrupt.

Rights of action arising ex delicto, do not pass to the assignee. 1 Yeates, 245; 2 Dall. 213.

2. Of protected transactions.

[32] By section 2, it is provided, that all dealings and transactions by and with any bankrupt, bona fide made and entered into more than two months before the petition made and filed against him, or by him, shall not be invalidated or affected by this act: provided that the other party to any such dealings or transactions had no notice of a prior act of bankruptcy, or of the intention of the bankrupt to take the benefit of this act. As to the manner of computing the two months, see 2 Bell's Com. 178, 5th ed.

By the same section it is provided that any liens, mortgages, or other securities on property, real or personal, which may be valid by the laws of the states respectively, and

notice.

Sect. 3. Of the disposition of the bankrupt's property.

[33] By section 9, it is enacted, that all sales, transfers, or other conveyances of the assignee, of the bankrupt's property or rights of property, shall be made at such times and in such manner as shall be ordered and appointed by the court in bankruptcy.

Sect. 15, enacts, that a copy of any decree of bankruptcy and the appointment of assignees, as directed by the third section of this act, shall be recited in every deed of lands, belonging to the bankrupt, sold and conveyed by any assignees under and by virtue of this act; and that such recital, together with a certified copy of such order, shall be a full and complete evidence both of the bankruptcy and assignment therein recited, and supercede the necessity of any other proof of such bankruptcy and assign ment to validate the said deed; and all deeds containing such recital, and supported by such proof, shall be as effectual to pass the title of the bankrupt of, in, and to the lands therein mentioned and described to the purchaser, as fully to all intents and purposes, as if made by such bankrupt himself immediately before such order.

Chap. 4. Of the proceedings in bankruptcy before a decree.

[34] This chapter will be divided into two parts; in the first will be considered the proceedings in case of voluntary bankruptcy; and, in the second, those in adverse proceedings. Part 1. Of proceedings in voluntary bankruptcy.

This part will be examined by considering, first, when the petition is to be presented; secondly, the

Sect. 1. When the petition must be presented.

[35] The seventh section requires that all petitions by any bankrupt for the benefit of this act, and all petitions by a creditor against any bankrupt under this act, and all proceedings in the case to the close thereof, shall be had in the district court within and for the district in which the person supposed to be a bankrupt shall reside, or have his place of business, at the time when the petition is filed; except where otherwise provided in this act.

Sect. 2. Of the form of the petition.

[36] The form of the petition will be considered in a four-fold view; first, the requisites of the petition itself; secondly, of the form of the schedule of the bankrupt's creditors; thirdly, of the schedule of the bankrupt's property; and, fourthly, of the affidavit.

1. Of the requisites of the petition itself.

[37] The principal requisites are the following.

1. That it be addressed to the proper court having jurisdiction over the bankrupt.

2. That it contain a full description of the petitioner, his name, place of residence, profession or occupation. A mistake, in this respect, will greatly embarrass, if not defeat the applicant. See Cress. Ins. R. 157, 178, 254; 2 Glyn & J. 225, 243.

3. That the applicant is indebted in his private capacity, or otherwise, to sundry creditors, a list of whose names is contained, to the best of his knowledge, in a schedule thereunto annexed.

4. That another schedule, properly marked, contains an accurate inventory of his property, rights and credits, of every name, kind and descrip

tion, and of the location and situation of each and every parcel and portion thereof.

5. That he prays to be decreed a bankrupt.

6. That he may be decreed to have a certificate of discharge from all his debts provable under the act, and be otherwise entitled to all the benefits thereof.

2. Of the schedule of bankrupt's creditors.

[38] The act requires that the voluntary bankrupt shall, by petition, set forth to the best of his knowledge and belief, a list of his creditors, their respective places of residence, and the amount due to each. Sect. 1. It is well to distinguish between admitted and disputed debts or claims. 3. Of the schedule of the bankrupt's property.

[39] The act requires that the petition shall contain an accurate inventory of the bankrupt's property, rights and credits of every name, kind and description, and the location and situation of each and every parcel and portion thereof. Sect. 1. When property is encumbered, a particular account of each encumbrance, showing the name of the encumbrancer and the nature of the encumbrance, the date when it was created, and other particulars which may enlighten the assignees, should be given.

This schedule should also contain a list of the persons against whom the bankrupt has claims which would pass to the assignee; and it would be proper to distinguish those which are admitted, from those which are disputed, and the good from the bad. This schedule should also exhibit upon what evidence these claims are founded, whether upon judgment, mortgage, bond, bill of exchange, promissory notice, book account, or otherwise.

4. Of the oath or affirmation.
[40] The last requisite of the act

in relation to a voluntary petition is that it be verified by the bankrupt's oath, or, if conscienciously scrupulous of taking an oath, by solemn affirmation. Sect. 1.

Sect. 3. Of the notice of petition.

[41] The act, section 7, directs that upon every such petition, notice thereof shall be published in one or more public newspapers, printed in such district, to be designated by the court, at least twenty days before the hearing thereof.

Part 2. Of adverse or involuntary bankruptcy before a decree.

[42] We have already seen, [19] that to entitle a creditor to proceed against a debtor in order to procure a decree of bankruptcy against him, it is requisite that the debtor should

1. Be a merchant, or using the trade of merchandise; a retailer of merchandise; a banker, factor, broker, underwriter, or marine insurer.

2. Be owing debts to the amount of not less than two thousand dollars. 3. Have committed one of the acts of bankruptcy enumerated in [18].

This part will be divided by con. sidering by whom the petition is to be presented; the form of the petition; and the notice to be given.

Sect. 1. By whom the petition is to be presented.

[43] The petition is to be presented by one or more of the bankrupt's creditors, to whom he owes debts amounting in the whole to not less than five hundred dollars. Sect. 1. It is proper to consider separately who is a petitioning creditor within the meaning of the act, and the nature of the debt.

1. Who may be a petitioning creditor.

1. [44] The creditors are either several or joint.

1. Several creditors. In general any person who has a legal debt against a person subject to the bankrnpt laws may be a petitioning credi