Appeal. An appeal against the judgment of the sheriff, declaring a party duly elected, may be taken to the Court of Session. It may be taken at the instance of any creditor or competitor who gives notice in writing to the sheriff-clerk within two days after the date of the deliverance. In the case of a competition, the appellant must lodge with the note of appeal a bond of caution signed by a cautioner approved of by the meeting, as above.

The note of appeal must be lodged with, and marked by the clerk to the bills within fourteen days after the date of the deliverance; and along with it there must be lodged a certificate from the sheriff-clerk of the due deliverance of notice, and the lodging of the bond of caution. On a copy of the note of appeal, certified by one of the bill-chamber clerks, being delivered to the sheriff-clerk, he is to transmit to the bill-chamber "the minutes of election, together with such of the proceedings as may be required." The appeal is to the Inner-House during session, and to the Lord Ordinary on the bills during vacation. When the appeal is taken to the Lord Ordinary during vacation, if the court should resume its sittings before it is disposed of, the proceeding goes to the Inner-House. If the question be decided by the Lord Ordinary, it may be reviewed by the Inner-House on reclaiming note, in the same manner as the other decisions of the Lord Ordinary under the act are reviewed (§ 54).

Effect of the Judgment. The court, on pronouncing judgment, may order a new election, and appoint a time and place for that purpose. If an appealing competitor is preferred, a remit is made to the sheriff to confirm him. An appeal does not stop proceedings in the sequestration. (§§ 54, 55, 128.)

Confirmation.-On the bond for the interim-factor being lodged, the sheriff confirms his election without appeal. If there have been no appeal as to the election of a trustee, or on an appeal being disposed of, the trustee is in the same manner finally confirmed. The interim-factor or trustee receives an act and warrant from the sheriff-clerk, of which he must immediately transmit a copy to the bill-chamber for entry in the register of sequestrations. A copy of the act and warrant, certified by the bill-chamber clerk, is evidence of the title of the interim-factor or trustee, and will enable him to sue in all courts within the British dominions (§ 49).

At the meeting for electing a trustee, commissioners are elected, and the interim-factor's remuneration may be fixed. (See below, pp. 388, 389.)

SECT. 6.-Powers and Duties of the Interim-Factor or

Sheriff-Clerk.

If the creditors fail to elect an interim-factor, or the nomination otherwise fail, his duties, as below specified, devolve on the sheriff-clerk (§ 50). They are as follows:-He must immediately take the steps necessary for the preservation of the estate until the meeting for election of trustee. He must "take possession of and recover the bankrupt's estate, and his title-deeds, books, bills, vouchers, and all other documents whatsoever, so far as then known, and make an inventory thereof," a copy of which he must transmit to the bill-chamber. He must lodge all monies in bank in the same manner as the trustee (see below, p. 390), and pay to the petitioning or concurring creditor, out of the first funds realized, the expense occasioned by the necessary procedure (§ 51). The factor must keep a sederunt-book, and engross in it abstracts of the state and rental provided to him by the bankrupt (§ 52). (See below, p. 394.)

At the meeting to elect a trustee the factor must exhibit the sederunt-book," and also an account of his intromissions and disbursements, and if required by any creditor, the books of the bankrupt, with the title-deeds, bills, vouchers, and other documents, conform to inventory;" and if the meeting be satisfied that he has duly lodged all monies and performed his duties, they are to fix his remuneration, to be paid with his advances out of the funds in his hands. If he be dissatisfied with the sums allowed, the amount is to be determined by the sheriff, but he is not entitled in respect of nonpayment, or on any other ground, to retain any part of the estate, which he must deliver with all vouchers, the state and rental, and other documents, to the trustee, who, if sufficient funds have not been realized by the factor, is to pay him out of the first realized funds (§ 53). The creditors may at any meeting (which the trustee must call if required) make an allowance to the interim-factor, subject to review. He may obtain, by application to the Lord Ordinary or the Sheriff, an order for the opening of the bankrupt's letters (§ 97). If an appeal be pending as to the election of a trustee, the factor is to continue to act till a trustee be confirmed (§ 55). The factor is amenable for his conduct to the Lord Ordinary and the Sheriff (§ 64). (See below, p. 392.) He is, along with the trustee and commissioners, statutorily precluded from purchasing any part of the bankrupt estate (§ 99).

SECT. 7.-The Commissioners.

At the meeting for electing the trustee (see above, p. 385), and after he is chosen, three commissioners are to be elected in the same manner. They must be either creditors or mandataries. They are not bound to find security. The sheriff decides who are the persons duly elected, and declares their election by a deliverance in the sederunt book, which entitles them to act without further confirmation. A majority forms a quorum. No person is eligible as a commissioner who is disqualified to be a trustee. (See above, p. 386.) Any mandatary elected a commissioner loses that office on written intimation by his constituent to the trustee that the mandate is recalled, and the trustee must immediately record the intimation in the sederunt-book. The trustee must in all cases where a commissioner has ceased to act, call a meeting of creditors to elect a new one (§ 56).

"The commissioners shall superintend the proceedings of the trustee, concur with him in submissions and transactions, give their advice and assistance relative to the management of the estate, examine the acts and intromissions of the trustee, audit his accounts, decide as to paying or postponing payment of a dividend, fix his remuneration, and may assemble at any time to ascertain the situation of the bankrupt estate; and any one of them may make such report as he may think proper to a general meeting of the creditors" (§ 57).

The commissioners hold a meeting within fourteen days after expiry of six months from the date of the sequestration, to examine into the proceedings of the trustee, and audit his accounts, &c., when they declare what part of the net produce of the estate, after a reasonable deduction for future expenses, shall be divided among the creditors (§ 103). (See below, p. 403.)

The manner in which the commissioners must exercise their powers is more particularly considered under the heads applicable to the various steps in the sequestration.

SECT. 8.-Powers and Duties of the Trustee.

The trustee within twenty-one days after his confirmation, must present an Abbreviate in the form prescribed by the act, to be recorded in the register of Adjudications, and certified by the keeper (§ 60). "The trustee shall manage,

realize, and recover the estate belonging to the bankrupt wherever situated, and convert the same into money, according to the directions given by the creditors at any meeting, and if no such directions are given, he shall do so with the advice of the commissioners ; and he as well as the interim-factor or sheriff-clerk acting as factor, shall lodge all money which he may receive in such bank as four-fifths of the creditors in number and value at any general meeting shall appoint;" and failing such appointment, in the Bank of Scotland, the Royal Bank, the bank of the British Linen Company, the Commercial Bank, or the National Bank,provided the bank be not one in which he is an acting partner, manager, or cashier. The money must be lodged by him "in his official character" under the act, "at the highest rate of interest which can be procured for the same." The bank must once yearly balance the account, and accumulate the interest with the principal sum, so that both bear interest, on failure to do so being liable to account as if the money had been so accumulated (§ 61). If the interimfactor, or trustee, keep in his hands more than £50 belonging to the estate for more than ten days, he must pay to the creditors at the rate of £20 per cent. per annum on the excess, for such time as it may be in his hands beyond the ten days; and unless the money has been kept from innocent causes he will be dismissed, on petition to the Lord Ordinary by any creditor, being liable to expenses, and having no claim for remuneration (§ 62). The trustee must reimburse the petitioning creditor if the interim-factor have not received sufficient funds (§ 51).

Sederunt-Book.-"The trustee shall keep a sederuntbook, in which he shall record all minutes of creditors and of commissioners, states of accounts, reports, and all the proceedings necessary to give a correct view of the management of the estate; and he shall also keep regular accounts of the affairs of the estate, and transmit to the bill-chamber clerk before each of the periods herein assigned for payment of a dividend, a copy, certified by himself, of such accounts, and such copies shall be preserved in the office of the said clerk; and the said sederunt-book and accounts shall be patent to the commissioners, and to the creditors or their agents at all times: Provided always, that where any document is of a confidential nature (such as the opinion of counsel in regard to any matter affecting the interests of the creditors on the estate), the trustee shall not be bound to

insert it in the sederunt-book, or to exhibit it to any other person than the commissioners, unless he be ordered by competent authority to do so" (§ 63).

Within eight days after his confirmation, the trustee must apply to the sheriff to name a day for the bankrupt's public examination. On the warrant being granted, the trustee must intimate by advertisement in the Edinburgh Gazette his name and designation, his election as trustee, and the time and place of the examination. He must likewise intimate a day and hour for a meeting of the creditors, which must be not less than fourteen, or more than twenty-one days after the day of examination, or (in the case of a deceased debtor) after the trustee's confirmation (§ 65). Within fourteen days after the examination the trustee must prepare a report as to the position of the estate, and an estimate of what it may produce, to be presented to the meeting, where he must be prepared to give all explanations (§ 73).

Resignation and Removal.-A majority in number and value of the creditors at any meeting called through the Edinburgh Gazette at least fourteen days previously, by advertisement specifying the purpose of the meeting, may remove the trustee or accept of his resignation. The removal is absolutely vested in such a majority, and they are not bound to show any cause,* *" and one-fourth of the creditors in value may at any time apply by petition to the Lord Ordinary for removal of the trustee; and the Lord Ordinary shall order the said petition to be served on the trustee, and intimated in the Edinburgh Gazette; and if the Lord Ordinary shall be satisfied that sufficient reason has been shown, he shall remove the trustee, and appoint a meeting of the creditors to be held for devolving the estate on the trustee next in succession, or electing a new trustee; and if the trustee shall die, resign, or be removed, or remain at any one time for three months furth of Scotland, any commissioner, or any creditor ranked, or claiming and entitled to be ranked, on the estate, may apply to the sheriff for an order to hold a meeting for devolving the estate on the next trustee in succession, or electing a new trustee, and the sheriff shall grant warrant to hold such a meeting at a certain time and place, which shall be advertised in the Edinburgh Gazette by the commissioner or creditor so applying." If it be found necessary to elect a new trustee, the proceedings are the same as those in the election of the previous one (§ 77).

• See Law of Bankruptcy, &c., p. 597.