ART. 1207. The provisions of article 1135 shall be applicable to the meeting held for the appointment of trustees and to other meetings held during the course of the proceedings.

ART. 1208. Three trustees shall be appointed for the proceedings, which number can not be increased nor reduced.

An exception may be made, however, if all the creditors who attend the meeting unanimously agree to appoint one or two trustees.

ART. 1209. With the exception of the last-named case, the election of the three trustees shall be had at two ballots by call of names of the creditors present at the meeting, whatever be their number and the liabilities which they represent.

ART. 1210. The election of the first and second trustees shall be had at one ballot; the two receiving a plurality vote of the amount of the capital or liabilities represented, whatever be the number of creditors representing the same, shall be declared elected.

If more than two persons receive a vote representing an equal proportion of the liabilities, the one receiving the larger number of votes shall be given the preference, and if the number of votes should also be equal, then the selection shall be made by lot from among such persons.

ART. 1211. In the election of the third trustee the creditors whose claims were included in the majority vote of the first two trustees shall not take part. The second election shall be held by the creditors voting with the minority only, and the person obtaining the largest number of votes shall be elected trustee.

If there should be two or more receiving the same number of votes, the one receiving a vote representing the greater amount of the claims shall be the third trustee; and if the amount of the claims should also be equal, said third trustee shall be selected by lot from among those receiving such equality of votes and claims.

ART. 1212. If by reason of death or any other cause, it should become necessary to replace one of the trustees, the election of either of the first two shall be had by the relative majority of the claims, and of the third trustee by the relative majority of the votes of the creditors attending the meeting, in accordance with the provisions contained in the foregoing articles.

ART. 1213. Only male creditors can be elected trustees who are over twenty-five years of age, present at the meeting, who are such in their own right and not representing another person, who do not have any known or pretended preferred claim and who reside at the place where the proceedings are being held.

Only in the absence of creditors in their own right can the representatives of others be elected.

If there should be only creditors having known or pretended preferred claims, and representatives of common creditors, the election shall be made from among the latter.

ART. 1214. The meeting shall be held on the day and at the hour fixed therefor, under the chairmanship of the judge and with the attendance of the court clerk.

After a statement of the creditors attending has been made, and if it agrees with the one made by the court clerk in accordance with the provisions of article 1205, the judge shall declare the meeting open for business, whatever be the number of creditors present thereat.

The session shall begin with the reading of the provisions of this law relating to the appointment of trustees; then the court clerk shall inform the meeting of the facts upon which the declaration of insolvency was made, of the result of all measures taken for the custody of the property, books, and papers, and of any other matters which may have taken place.

After these formalities have been complied with, the election of trustees shall be continued in the manner prescribed in articles 1208

et seq.

The proper minutes of the result of the meeting, with a detailed statement of the voting had by call of names, shall be drafted, and, in a proper case, of the protests which may have been made, which minutes, after being read and approved, shall be signed by the judge, the creditors present, the debtor, if he has attended, and the court clerk.

ART. 1215. After the trustees have been elected, they shall be given possession of their offices, after they have accepted the same and after they have taken an oath that they will perform said duties faithfully and well. Their appointment shall be communicated to whom it may be necessary.

Their appointment shall furthermore be published by edicts, which shall be posted in the customary places and inserted in the official newspapers in which the call for the meeting may have been published. In these edicts it shall be required that all persons deliver to the trustees all property belonging to the insolvent.

ART. 1216. The following are the duties of the trustees:

1. To represent the estate of the insolvent in and out of court, and defend its rights, and exercise the actions, and plead such exceptions. as may be proper.

2. To administer the property of the estate of the insolvent, taking charge thereof and of the books and papers.

3. To recover and collect all amounts, rents, and annuities belonging to the estate of the insolvent, and pay the expenses thereof which may be indispensable for the defense of the interests and the preservation and benefit of the property of said estate.

4. To procure the alienation and realization of all property, rights, and actions of the estate of the insolvent under the most advantageous conditions and with legal formalities.

5. To examine the documentary proof of credits and propose to the meeting of creditors their acknowledgment and classification.

6. To take the steps necessary to call and hold the meetings of creditors, in the cases and for the purposes which they may consider necessary, in addition to the meetings expressly prescribed in this law.

ART. 1217. The trustees shall collectively be entitled to the following remuneration, which they shall divide among themselves in equal parts, should they not have made any agreement to the contrary:

One-half per cent of the cash value of all public securities sold. Two per cent of the net amount received at the sale of jewelry, personal property, live stock, or crops which are not the products of their administration.

a The trustees may institute the same actions which it was the privilege of the insolvent to bring against persons against whom he had claims (Decisions of December 14, 1861), and they represent him as well as the creditors.-Decisions of June 17, 1887, and September 30, 1886.

One per cent of the net amount received from the sale of real property and of the amount collected from the credits or claims belonging to the estate.

Five per cent of the net products of the administration which are not derived from the sources mentioned in the foregoing paragraphs. If in the performance of their duties traveling should become necessary, the costs thereof shall be allowed them by an order of the judge and a mandate which shall be issued for the purpose.

ART. 1218. The election of all or of any of the trustees may be impugned by the debtor or by any of the creditors appearing in the proceedings, who may not have attended the meeting, or who should have dissented from the majority and protested against the election at the time thereof.

In order that the protest may be admitted it must be presented within three days after the holding of the meeting, if the debtor or the creditor making the same should have been present thereat, and otherwise within a similar period, counted from the date of the publication of the appointment of the trustees."

ART. 1219. The only causes for objections admissible shall be the following:

1. A legal impediment which prevents the persons elected from discharging the duties of the office.

2. A violation of the forms prescribed for calling and holding the meeting and the deliberations thereof.

3. A lack of personal or representative capacity in any of those who may have attended the meeting and voted with the majority, provided that by excluding their vote there would not have been a majority of votes or of claims represented.

ART. 1220. The objection shall be heard and determined in a separate record, to which the trustee objected to shall be a party, at the cost of the objecting party, and the record shall be composed of the written objection presented, a certified copy of the minutes of the meeting, and other details which the judge may designate.

ART. 1221. After the separate record has been formed, it shall be delivered to the person who objected in order that he may, within the period of four days, formulate his objection, which shall be heard and determined in the manner prescribed for incidental issues.

The decision rendered thereupon may be appealed from for review and for a stay of proceedings.

ART 1222. The insolvency proceedings shall not be suspended by reason of the objection made to the election of trustees.

Neither shall said objection prevent the persons elected from entering upon the discharge of their duties, without prejudice to the result of the objection.

ART. 1223. Any trustee whose claim has not been acknowledged in whole or in part by the creditors' meeting, or by the judge, in a proper case, or who institutes any action against the estate of the insolvent, or should impugn any of the resolutions of the meetings of creditors, shall de jure be divested of his office and be replaced in the manner prescribed in article 1212.

a The absence of a protest does not affect the personal capacity of the debtor.Decision of December 3, 1885.

A decision upon this appeal is not definite for the purposes of an annulment of judgment.-Decision of March 22, 1389.

ART. 1224. If for the reasons mentioned in the foregoing article or by reason of death or otherwise, it should be necessary to elect a successor to any of the trustees, such election shall take place at the first meeting which may be held, whether it be for the acknowledgment or the classification of the credits.

If the occurrence should take place after these meetings have been held, and no other meeting has been called, the judge shall order that a meeting be called for the purpose of electing a successor to the trustee in question.

In the meantime the trustee or trustees remaining in the discharge of their duties shall be the legal representatives of the estate of the insolvent.

ART. 1225. After the trustees have been placed in possession of their offices, the proceedings shall be divided into three separate records.

The first, which shall contain all proceedings already had, shall be called "Administration of the estate of the insolvent. The hearing and determination of all matters appertaining to said administration shall be had and entered therein, without prejudice to forming such separate branches which may be necessary for the purpose of avoiding confusion in the proceedings.

The second shall be for the acknowledgment and classification of the credits.

The third shall be for the classification of the insolvency proceedings.

SECTION V.-FIRST RECORD.-ADMINISTRATION OF THE ESTATE OF THE INSOLVENT.

ART. 1226. After the appointment of the trustees has been published, the property, effects, books, and papers of the insolvent shall be turned over to them by inventory.

The money shall remain on deposit at the disposal of the judge in the establishment provided therefor; the certificate or certificates of such deposit shall be delivered to the trustees, who shall give a receipt therefor, which shall be attached to this record.

ART. 1227. The trustees shall be bound, under their liability, to carefully administer and preserve the property of the estate of the insolvent, and to see that it gives the proper rents, products, or profits until sold.

For this purpose the provisions contained in articles 1015 to 1021, relating to the administration of intestate estates, shall be applicable to the administration of estates of insolvents without a hearing of the insolvent being necessary."

ART. 1228. The judge shall leave in the hands of the trustees the sum which he may consider indispensable to meet the ordinary expenses of the estate of the insolvent, ordering that it be withdrawn from deposit, if necessary.

As such expenses shall be considered all those which are required for the custody and preservation of the property, the payment of taxes and charges to which the real property may be subject, and

In order to preserve and administer the property of the insolvent, any lessee or renter of property, including the insolvent himself, is subject to eviction therefrom. Decision of October 30, 1885.

the costs of all actions and all ordinary matters pertaining to the

estate."

ART. 1229. The trustees shall present a statement or account of their administration on the last day of every month, unless the judge, taking into consideration the receipts of the estate, should deem it proper to extend this period.

If it should appear that there is money in the hands of the trustees which is not necessary for the ordinary expenses of the estate, and which has not been deposited by the trustees in the proper public establishment, the judge shall, under his liability, compel them to do so.

ART. 1230. A separate branch of the first record shall be formed out of the statements or accounts of the administration, which record, together with said separate branch and any others which may be formed, shall remain on file in the office of the clerk, subject to the examination of the creditors and debtor. No charges shall be made for said examination.

ART. 1231. The judge, on his own motion or at the instance of the creditors or of the insolvent, may correct any abuse which he may notice in the administration of the estate, taking the measures which he may consider necessary, including the suspension of the trustee or trustees who may have committed it.

In the latter case the judge, without allowing any remedy against his order, shall immediately call a meeting of the creditors in order that they may determine what they may consider most advisable.

If the decision of the meeting should confirm the suspension of the trustee, the election of his successor shall be proceeded with at the same meeting in the manner prescribed in article 1212.

Otherwise the suspension ordered by the judge shall be considered vacated.

The provisions contained in this article are understood without prejudice to the institution of criminal proceedings when proper.

ART. 1232. After the trustees have been given possession of the property and effects of the insolvent, they shall proceed with the sale of the same, in the first separate record, or in branches thereof, only excepting

1. Property with regard to which there is an action pending as to its ownership, instituted by a third person, in which case the sale shall be delayed until a final judgment is rendered therein.

2. The real property, which, on account of being specially mortgaged, is seized under an execution, which has not been consolidated with the bankruptcy proceedings.

In such case a communication shall be sent to the judge taking cognizance of the executory action requesting that he place the surplus remaining, after payment of the mortgage creditor, at the disposal of the estate of the insolvent.

ART. 1233. When the trustees should believe that it is for the best interests of the estate of the insolvent to suspend or postpone the sale of some property, they shall so inform the judge, who shall agree to such suspension if he deems it proper, but a report of the causes or

@ This shows exactly in what order the expenses and costs are to be paid, which was more fully sanctioned by article 592 of the law of 1855, which concords with article 1266 of the law in force.-Decision of May 11, 1866.