proved by clerk.

of the creditors, in double the amount of the inventory and Sureties to be ap- valuation, with sureties to be approved by said clerk, for the faithful performance of said trust, and for the full and complete accounting for and of all property that may come into his hands as such assignee, and such assignee shall have no power or authority to sell or dispose of or convert to the purposes of the trust any part of such estate, until he shall have complied with the provisions of this section.

Real property conveyed.

Assignee shall give notice of assignment by publication.

of three months

with clerk full list

SEC. 6. Where real property, or any interest therein, is, by such deed, conveyed to the assignee, the assignee shall forthwith file with the clerk and recorder of each county where the real estate is situated, a notice of the assignment, containing the names of the assignor and assignee, the date of the deed of assignment, when and where recorded, and a description of the property in that county affected thereby, and the same shall be constructive notice to a purchaser or incumbrancer of the transfer of the property in said county, described in such notice.

SEC. 7. The assignee shall forthwith give notice of such assignment, by publication in some newspaper in the county, if any, and if none, then in the nearest county thereto, which publication shall be continued four weeks, and he shall also forthwith send a notice by mail to each creditor of whom he shall be informed, directed to his usual place of residence, stating the estimate of the aggregate value of all the property of the assignor, the estimate of the amount of his liabilities, and notifying each creditor to present his claim, under oath, to the assignee, within three months from the mailing of such notice. Claims filed within the first three months shall have priority over those filed thereafter, unless a creditor can show, to the satisfaction of the court, or judge, that he never received any such notice. Proof of notice by mail shall be made by affidavit, by the assignee, giving a list of creditors, and names of postoffice where notice was sent, within ten days after the mailing of the same, and the proof of the notice by publication shall be made by affidavit of the printer, or publisher, within ten days after the last publication, or no fees shall be allowed for such notice by mail or publication.

At the expiration SEC. 8. At the expiration of three months from the assignee shall file time of the first publication and the mailing of notice, the of creditors. assignee shall report, and file with the clerk of the court, a true and full list, under oath, of all the creditors of the assignor, who shall have filed their claims, the place of their

residence, the amount claimed, and the amount and value of any security held by any such creditor, if any. He shall also file a statement of all his proceedings with reference to such trust, showing what money has come into his hands. and all the disbursements thereof.

may appear.

SEC. 9. Any person interested, may appear before a Person interested dividend shall be made, and file with said clerk any exceptions to the claim or demand of any creditor, and the clerk shall thereupon cause notice thereof to be given to the creditor, which shall be served and returned, as in the case of a summons. Within the time allowed to answer in an action at law, the creditor shall file his reply. The court or judge shall designate the time for the hearing, and shall at such time hear the allegations and proof offered, and shall render such judgment thereon as shall be just.

SEC. 10. If no exception be made to a claim filed, or if the same has been favorably adjudicated, the court shall order the assignee to make, from time to time, fair and equal dividends among the creditors, of the assets in his hands, in proportion to their respective claims, and as soon as may be, to render a full account of said trust to said court, who may allow such compensation or commissions, following as near as may be the compensation allowed executors for like services, as may be just and right.

subject to order

SEC. II. The assignee shall at all times be subject to Assignee shall be the order and supervision of the court or judge, and may, of court. by citation or attachment, be compelled, from time to time, to file reports of his proceedings, and of the situation and condition of the trust, and to proceed in the faithful execution of the duties required by this act, to keep correct books of account open to [the] inspection of the court or judge, or any person interested in said estate, or his attorney. All conveyances of real estate by the assignee, and all sales of personal property by the assignee, not in the usual course of business as conducted by the assignor, shall be approved by the judge before such sales shall be valid.

assignee.

SEC. 12. In case the assignee named in the deed shall On failure of fail or neglect, for the period of ten (10) days after the making of any assignment, to file an inventory and valuation, and give bonds as required by this act, or, in case of his death before the closing of his trust, or, in case of his removal from the execution of the trust, the court or judge Court may ap may, upon the application of any person interested, appoint.

point.

Court may re

move.

Power of assignee.

Insufficiency of bond.

The court may compel the appearance of debtor.

an assignee to execute such trust, who, when he has qualified, as provided in this act, shall have all the rights, powers and authority, and be subject to the same restrictions and obligations, as an original assignee.

SEC. 13. The court or judge may remove the assignee for neglect in the execution of the trust, for fraud, for misapplying the trust, or wasting [the] estate, or for failure to comply with the provisions of this act, or to obey the orders of, or to submit to the supervision of the court, or for any other good cause shown; or he may be removed upon the petition of the majority in number and value of the creditors, unless the court shall be satisfied that such removal would not be for the best interest of the trust estate.

SEC. 14. The assignee shall have all the rights, power and authority of the assignor necessary to fully execute such trust, to demand and sue for any and all property belonging to such estate, and to execute valid receipts; and may, by deed duly acknowledged by him, in his own name as assignee, convey any and all of the estate, real and personal, subject to approval, as stated in section eleven (11) hereof. Where the assignee has been appointed by the court or judge, in place of an assignee removed, it shall be his duty to compel by suit, or the peremptory order of the court, the delivery of the trust estate and the property, or the value thereof, that may have been wasted or misapplied by the previous assignee.

SEC. 15. In case it shall be shown to the court at any time that the sureties on the assignee's bond are not sufficient, the court may order sufficient sureties to be given, and may compel obedience thereto by removal or otherwise.

SEC. 16. The assignee shall, from time to time, file with the clerk of the court, an inventory and valuation of any additional property which may come into his hands after the first inventory, and the judge, or, in his absence, the clerk, may thereupon require him to give additional security.

SEC. 17. The court or judge may, upon the application of the assignee, or of any creditor, compel the appearance in person of the debtor, or his wife, or any other witness, before the court or judge, or a commissioner to be appointed by the court or judge, forthwith, or at any time designated, to answer under oath such matters as may then

and there be inquired of him; and such debtor or other witness may then and there be fully examined under oath as to the amount and situation of his estate, as to payments and conveyances made by him, and the names of creditors and the amounts due to each, with their place of residence, and the court or judge may, upon like application, compel the debtor to deliver to the assignee any property or estate embraced in the assignment.

shall be invalid

appropriation.

SEC. 18. No assignment shall be invalid because of No assignment misappropriation of the property of the debtor by him, because of misprior to the assignment, but the assignee may recover such property, if so misappropriated in fraud of this act. But nothing in this act contained shall invalidate any conveyance or mortgage of property, real or personal, by the debtor before the assignment, made in good faith, for a valid and valuable consideration.

SEC. 19. Debts not due may be claimed, but if the same are not bearing interest, a suitable rebate shall be made. Interest shall be computed to the date of the assignment, and not afterwards.

creditors may

SEC. 20. The majority in number and value of the Majority of creditors may, in writing, appoint an attorney at law to rep-appoint an resent the estate before the court, or judge, who, in case of attorney. his appointment, shall examine all reports and inventories and books of the assignee, and inquire fully as to the conduct of the assignee in the discharge of his trust. He may appear for the assignee in all suits in behalf of the assignee in securing, preserving or defending the estate, but shall appear in behalf of the creditors, in all suits, examinations or inquiries as to the accounts or the conduct of the assignee concerning said estate. The court or judge may Court may allow allow such compensation to such attorney as may be just attorney. and reasonable.

SEC. 21. At any time after an assignment has been made, the assignor, the creditors and the assignee of such assignor, may agree, in writing, that all proceedings to be had before the court or judge thereof, under the provisions of this act, may be waived, and upon the filing of such agreement with the clerk of the proper district court, such court and the judge thereof, shall cease to have any further jurisdiction over such assignment and the proceedings thereunder, and the assignee shall no longer be held accountable to said court, or the judge thereof, and the cred

compensation to

assignee

itors and the assignee, with the consent of the assignor, in writing, may make such disposition of the assigned estate and arrangements in reference thereto, as to them shall seem proper in the premises.

SEC. 22.

Before the assignee shall be discharged, he Final report of shall file his final report, showing that he has fully accounted for all the property that came into his hands, and discharged the trust, and shall send a written notice to all the creditors, at least ten (10) days before the hearing, stating that his final report is on file, that he has applied for his discharge, and that such report will be examined and the application heard at the time and place designated in the notice. When the trust estate is fully closed, the court or judge may order that the assignee and the sureties on his bond be fully discharged from all liability in behalf of said estate.

No deed of

assignment shall be invalid.

Claims of servants, etc.

Not to exceed fifty dollars.

Repealing clause.

SEC. 23. The assignee shall close his trust within one year from the filing of the deed of assignment, unless the court or judge, for good cause shown, extend the time.

SEC. 24. No deed of assignment shall be invalid, which excepts from the operation thereof, the property which by law, is exempt from execution.

SEC. 25. The valid claims of servants, laborers and employés of the assignor, for wages earned during the six months next preceding the date of the assignment, not to exceed fifty dollars to any one person then unpaid, and still held by the person who earned the same, and all taxes assessed under the laws of this State, or of the United States, shall be preferred claims and be paid in full, prior to the payment of the dividends in favor of other creditors.

SEC. 26. Any creditor may maintain an action on the bond of the assignee, for any damages such creditor may have sustained, by reason of the acts or failure to act of said assignee.

SEC. 27. The act entitled “An act to regulate assignments for the benefit of creditors," approved February 12th, 1881, and all other acts or parts of acts inconsistent with the provisions of this act are hereby repealed.

Approved April 10, 1885.