within the 3 months shall be paid in full before any others are paid Debtors are not discharged.

Kansas. No preferences are allowed. There shall be filed in the office of the clerk of the district court of the county in which such assignment is recorded, on the day it is executed, a verified schedule of the liabilities of the assignor, with the name of the creditor, the amount and character of his debt, and his post-office address, so far as known to such assignor. The clerk within 2 days next following the filing of such schedule shall mail to the post-office address, as given, of each creditor for more than $10, a notice of the assignment, with the names of the assignor, the assignee, and all the creditors, and a statement of the amounts in the schedule, and name a day, not less than 20 nor more than 30 days from the day of such assignment, on which a meeting of the creditors will be held at the office of such clerk to choose an assignee; and until after such meeting the assignee named in the assignment shall exercise no powers except to safely keep the property coming into his hands. An assignee may be chosen by the greater part in value and in number of those attending or so represented. If no choice be made at such meeting, or if the person chosen fail to accept, the judge of the district court, or in his absence from the county the probate judge, appoints an assignee. An assignment does not discharge debts beyond the actual payments made.

Kentucky.-Preferences are not allowed, but debts due by the assignor as guardian, committee, trustee of an express trust created by deed or will, or as administrator or executor, are to be paid in full before the general creditors. Every sale, mortgage, or assignment, judgment suffered, act or device done by a debtor in contemplation of insolvency, and with design to prefer a creditor, operates as an assignment of all his property for the benefit of all of his creditors, and may be reached by petition filed within 6 months. There must be filed within 5 days from the execution a schedule of assets, and a list of creditors. The assignee must qualify before a county court, and within 2 months must give notice by publication of the time and place where he will receive claims. Personal property shall be sold by the assignee at public or private sale as the court directs; real property may be sold under order of the court. If creditors representing one-half in number and two-thirds of the amount of debts against the estate shall so request in writing, the court shall remove the assignee, and appoint another in his stead. An assignment does not release the assignor.

Louisiana.-Assignment for the benefit of creditors does not exist. Any person may make a surrender of his property to his creditors. The latter name a syndic (an assignee) who disposes of the estate as the creditors decide, and the proceeds are distributed ratably

by the court, except where there exist legal liens or privileges. Insolvent debtors may be discharged from all liability by a vote of a majority of all their creditors in amount and number, but defaulting receivers of public funds, unfaithful depositories, and those whose losses have been occasioned by gambling, dissipation, or debauch, cannot avail themselves of insolvent laws. Foreign creditors are not bound by insolvent proceedings unless participating in them; practically, however, only creditors whose claims are within the jurisdiction of the federal courts can escape the operation of the state insolvent laws. Maine.-All statutes relating hereto were repealed by the insolvent law, which is now superseded by the national bankruptcy act.

Maryland.-Debtors making assignments with preferences, may be declared insolvent, if proceeded against within 4 months. No preferences are allowed, and claims are paid according to priority. Under the insolvent laws of the states, which are suspended by the United States bankruptcy act, a debtor who has not been guilty of fraud or bad faith and who is unable to pay his debts may be discharged from his liabilities, except those due to non-residents of the state, by surrendering all his property.

Massachusetts.-This state has an insolvent law similar in many of its provisions to the United States bankruptcy law. The probate courts are also courts of insolvency. The applicant must be an inhabitant of this state, and must owe at least $200. To obtain his discharge, his estate must pay at least 50 per cent. of the debts proved, or a majority in number, and value of his creditors must, in writing, assent thereto within 6 months after the date of the assignment. Said discharge does not operate against a debt for necessaries, or, excepting that he cannot be arrested or his after-acquired property attached, against a debt to a person not a resident in this state, or a debt founded on a contract made or to be performed without this state, unless proved against his estate. Neither does such discharge operate against certain fiduciary debts, nor those created by the fraud or embezzlement of the debtor, nor a claim for goods attached on mesne process, or taken on execution by the debtor as an officer or for malfeasance in office, but a dividend declared thereon shall be payment of so much thereof. Sales, pledges, assignments, or transfers of property by an insolvent debtor, made with a view to give a preference, within 6 months before the filing of the petition by or against him to a person having reasonable cause to believe such person insolvent or in contemplation of insolvency, and that the same is made to prevent the property from coming to the assignee in insolvency, and that the said sales or transfers are made with a view to prevent the distribution of said property among the general creditors, are void, and also a payment, pledge, assignment, or conveyance made by a person insolvent

or in contemplation thereof, within 6 months before proceedings are commenced, with a view to give a preference, if the person receiving the same or to be benefited thereby has reasonable cause to believe the person making same insolvent or in contemplation of insolvency; and that the same is made in fraud of the laws relating to insolvency; and the property, or the value of it, may be recovered by the assignee. A person who has accepted any preference, having reasonable cause to believe that the same was made or given by the debtor contrary to any provision of the statutes, shall not prove the debt or claim on account of which the preference was made or given, or receive any dividend thereon. The assignment to the assignee vests in him all the estate of the debtor, except that which is exempt from being taken in execution. Assignments for benefit of creditors are not valid as against insolvency proceedings, excepting that if made, accepted by the assignee, and assented to by a majority in number and value of creditors whose claims are neither secured nor privileged, and notice sent all creditors, and record of assignment, the assignee's acts in caring for and disposing of the property will be valid, and an assignee in insolvency shall be entitled to recover the net amount received therefor. Provision is made for a composition with creditors under the direction of the court. In the ordinary course of proceedings, it requires from 6 to 8 months to close an insolvent estate and reach payment of dividends, if any. There are three meetings at which creditors may prove claims. At the first, the assignee is chosen. The second is called within 3 months after the date of the warrant, and the third within 6 months after the appointment of the assignee. Under the composition act, the period before final settlement is reached is usually much shorter. In forwarding proofs of claims to be allowed in insolvency proceedings, the form of affidavit adopted by the courts must be used. Unless represented by counsel here, creditors desiring to prove a claim should send to the register of the court and procure proper blanks, whether for individual, firm, or corporation creditor. Originals of bills and notes, and itemized bills of merchandise accounts, must be annexed to the proof or affidavit. Copies of bills and notes will not serve, but such originals may, after claim is allowed, be taken from the files upon leaving a copy, and with permission of the register. The assignee is chosen at the first meeting of the creditors by a majority in amount of those whose claims have been proved and allowed. Non-resident assignees must appoint agent resident here for service of process. In the order for a dividend, the following claims shall be entitled to priority, and to be first paid in full in that order: (1) Debts due the United States and taxes. (2) Wages due an operative, clerk, or servant to an amount not exceeding $100, for labor performed within 1 year next preceding commencement of insolvency proceedings. (3) Debts due physicians for medical attendance on the debtor or his family rendered

within six months preceding insolvency, not exceeding in amount $50. (4) Debts due to persons who, by United States laws or those of this state, are or may be entitled to priority or preference in like manner as if the chapter on insolvency in public statutes had not been enacted. (5) Legal fees, costs and expenses of suit, and for custody of property when the debtor's property has been attached under mesne process, and not dissolved before commencement of insolvency proceedings. A small maintenance allowance may be made debtor from assets. Firms and corporations, including foreign, having their usual places of business here, except railroad and banking companies, may petition to be petitioned into insolvency. In the cases of foreign firms and corporations, the proceedings apply so far as any property in this state is concerned. Discharge not granted corporations. Grounds for involuntary proceedings are as follows: If a person arrested on mesne process in a civil action for the sum of $100 or upwards, founded upon a demand in its nature provable against the estate of an insolvent debtor, has not given bail therein on or before the return day of such process, or has been actually imprisoned thereon for more than 30 days; or if a person whose goods or estate are attached on mesne process in such action founded upon such contract has not, before the return day of such process, dissolved the attachment in the manner provided by law; or if a person has removed himself or any part of his property from the state with intent to defraud his creditors, or has concealed himself to avoid arrest or any part of his property to prevent its being attached or taken on a legal process, or procured himself to be arrested or his property to be attached or taken on any legal process, or made a fraudulent payment, conveyance, or transfer of any part of his property, or, being a banker, broker, merchant, trader, manufacturer, contractor, builder, or miner, has fraudulently stopped payment, or has stopped or suspended and not resumed payment of his commercial paper within a period of 14 days, any three or less number of his creditors whose combined claims provable against his estate amount to $100 may, within 90 days thereafter, or, in the case of any such fraudulent conveyance of real estate, within 90 days after the same has been recorded, if the debtor has resided in the state within 1 year, apply by petition to the judge for the county in which the debtor has last resided, or had a usual place of business, for 3 consecutive months before the application if he has resided, or has a usual place of business, for that time in any county, otherwise to the judge for the county within which he resides or last resided, or has or last had a usual place of business, setting forth the facts and the nature of their claims, verified by oath, and praying that his estate may be seized and distributed according to the provisions of this chapter. Ground upon which discharge is refused is as follows: Discharge not granted or valid if the debtor has wilfully sworn falsely as to any material fact in the course of the proceedings, or has fraudulently concealed

any part of his estate or effects, or any book or writings relating thereto; or has made any fraudulent payment, gift, transfer, conveyance, or assignment of any part of his property, or spent any part thereof in gaming, or if within 6 months before the filing of the petition by or against him he has obtained on credit from any person any money, goods, chattels, or other thing of value, with intent not to pay for the same, or has procured his lands, goods, money, or chattels to be attached, sequestered, or seized on execution, or has destroyed, altered, mutilated, or falsified any of his books, documents, papers, writings, or securities, or has made, or been privy to the making, of any false or fraudulent entry in any book of account or other document with intent to defraud his creditors, or, with that intent, has expended, invested, or used any part of his property in the erection, alteration, repair, or location of building on land owned or leased wholly or in part by another, or has removed himself or removed or caused to be removed any part of his property from the state with intent to defraud his creditors, or if, having knowledge that a person has proved a false debt against his estate, he have not disclosed the same to his assignee within 1 month after such knowledge; or if, being a merchant or tradesman, he have not kept proper books of account; except when the total claims proved exceed $5,000 and twothirds in number and the majority in value of creditors assent in writing and the court orders.

Michigan.-An assignment is void unless it be of all the assignor's property not exempt from execution, and be without preferences. It must be acknowledged, and within 10 days it or a duplicate, a sworn inventory of the assigned property, and list of the assignor's creditors, and a proper bond by the assignee, must be filed with the clerk of the circuit court of the county where the assignor resides, or if he be not a resident of the state, where the assignee resides, or if neither be a resident of the state, then of the county where the assigned property is principally located. So much of the debt as is not paid by the assignee remains an obligation against the debtor. The law as to such assignments is suspended by the national bankruptcy act.

Minnesota.-The assignee must be a freeholder and a resident of this state. No preferences are allowed. The assignment must be filed in the office of the clerk of the district court where the debtor resides or does business. Within 10 days thereafter the assignor must file a verified account of his creditors and their claims. All proceedings are subject to the order and supervision of the judge of the district court, and such judge may, for cause shown, remove the assignee and appoint another. At least 20 days before the assignee shall make payment of any dividend or distribution of any such estate, he shall file with the clerk of the district court a statement under his oath of all creditors who have filed claims, with the