(Scotland.) A BILL ΤΟ Amend the Laws relating to Bankruptcy in [Note.-The Words printed in Italics are proposed to be inserted W HEREAS an Act was passed in the Session of Parliament Preamble. holden in the Second and Third Years of the Reign of Her present Majesty, intituled, "An Act for regulating 2 & 3 Vict. "the Sequestration of the Estates of Bankrupts in Scotland;" and it c. 41. 5 is expedient that the said Act be in some respects altered and amended, and that further Provision be made for the due Management and more speedy Distribution of the Estates of Bankrupts under Sequestration in Scotland: Be it therefore enacted, by the Queen's most Excellent Majesty, by and with the Advice and 10 Consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the Authority of the same, as follows: Office of Interim Factor abolished, Clerk to take immediate I. The Office of Interim Factor shall be and is hereby abolished, and all the Powers and Duties presently performed or possessed by 15 or incumbent upon such Interim Factor shall in future devolve and Sheriff upon the Sheriff Clerk of the County, who shall, immediately on Sequestration being awarded, or as soon thereafter as the Circum- Possession of stances admit of, take possession of the Bankrupt's Estate and Effects, Bankrupt's, and of his Title Deeds, Books, Bills, Vouchers, and other Papers and 20 Documents, and also make up an Inventory of such Estate and A Effects, 441. Estate. Circular Letters to be sent to Creditors mentioned in the Bank Effects, and a Valuation showing the estimated Value and the annual II. It shall be the Duty of the Sheriff Clerk, as soon as the State of Affairs directed by the said recited Act to be made up by the Bankrupt has been prepared and delivered to him, to notify, by cir- 5 cular Letter transmitted through the Post Office to every Creditor rupt's State mentioned in the said State of Affairs, the Period within which Claims should be lodged; and the said State of Affairs shall be prepared by the Bankrupt with all Despatch, and shall be delivered by him to the Sheriff Clerk at latest before the Time appointed by this Act for the 10 Election of Trustee. of Affairs. Deliverance awarding Sequestra tion to appoint Meeting to elect Trustee. Not to be imperative on Lord Ordi Lord Ordi nary, if he thinks fit, III. The Deliverance awarding Sequestration shall appoint a Meeting of the Creditors, to be held at a specified Hour on a specified Day, being not earlier than Twelve nor later than Twenty-one Days from the Date of such Deliverance, to elect a Trustee or Trustees in suc- 15 cession, and Commissioners, and to do the other Acts provided by the said recited Act to be done at the Meeting for electing a Trustee. IV. It shall not be imperative upon the Lord Ordinary, when awarding Sequestration, to grant to the Debtor or Partners of the Company nary to grant against whom or which Sequestration is awarded a Warrant of Pro- 20 personal tection against Arrest or Imprisonment for Civil Debt until the Protection. Meeting of the Creditors for the Election of Trustee, but the Lord Ordinary may, while awarding while awarding Sequestration, refuse to grant such may withhold Warrant of Protection: Provided always, that it shall in such Case be competent to the Creditors on the Occasion of their Meeting to 25 elect a Trustee, or at the Meeting after the Examination of the Bankrupt, or at any Meeting called for the Purpose of receiving an Offer of Composition, to resolve that personal Protection ought to be granted to the Bankrupt for such Time as they may think fit, and the Trustee shall thereupon apply to the Sheriff, who shall grant the 30 Protection. personal Protection. Deliverance of Sheriff as to the Election of Trustee to be final. Errors in to infer V. The Deliverance of the Sheriff, or Sheriff Substitute, declaring the Person or Persons elected to be Trustee or Trustees in succession, shall be final, and in no Case subject to Review in any Court or in any Manner whatever. 35 VI. The Failure on the Part of any Creditor to comply with the framing Oath or Claim by Provisions of the said recited Act, with reference to the Mode of Creditor not framing his Oath and Claim in the Sequestration, shall not infer Nullity, but Nullity of such Oath or Claim or render the same inoperative, either as to voting or ranking or otherwise, unless it shall appear probable 40 that to be sub ject to Correction. that such Failure was of fraudulent Purpose, or unless some substantial Injury can be qualified by the other Creditors, or any of them, in respect thereof; but it shall always be competent to the Trustee to call upon any Creditor who has failed to comply with any such Pro5 vision to rectify his Oath and Claim, pointing out to him wherein it is defective, and such Creditor shall thereupon be bound forthwith to alter his Oath and Claim so as to rectify the same. raised after VII. Nothing in the said recited Act contained shall be construed Poinding to import that a Creditor holding a Security over the Heritable Estate, the Ground 10 preferable to the Right of the Trustee, may raise a Summons of Poind- Sequestraing the Ground after the Date of the Sequestration, to the Effect of tion not to competing with the Trustee in respect of such Poinding; and no Exe- Trustee. cution of Poinding the Ground, proceeding on a Summons raised after the Date of the Sequestration, shall in any Question with the Trustee 15 have any Effect. compete with Examination of Bankrupt, and for the Meeting of VIII. The Day to be fixed by the Sheriff for the Examination of Time for the Bankrupt shall be not sooner than Seven Days, nor later than Fourteen Days from the Date of the Sheriff's Warrant for such Examination; and the Meeting of Creditors appointed by the said recited 20 Act to be held after the Examination of the Bankrupt shall be held thereafter. on a Day not sooner than Seven Days nor later than Fourteen Days from the Day appointed for such Examination. Creditors IX. Wherever it is by the said recited Act or by this Act directed Notice on that a Meeting of Creditors shall or may be called or held, a Notice which Meetings may 25 of the Day, Hour, Place, and Purpose of the Meeting shall be adver- be called, tised in the Edinburgh Gazette Seven Days at least before the Day of the Meeting, in place of Fourteen Days, as at present; and such Meeting may be adjourned till the following Day. shortened. Acceleration X. In place of the Times appointed by the said recited Act for Provision for 30 Payment of Dividends, the Periods for Payment of Dividends shall be Payment and as follows; that is to say, where there are sufficient Funds realized, of Dividends. the First Dividend shall be payable on the First lawful Day after the Expiration of Six Months from the Date of Sequestration, and a Dividend shall always be payable on the First lawful Day after the Date of the Payment of the 35 Expiration of Three Months from the 441. |