Insolvent Laws.

Attachment of vessels.-Debts amounting to fifty dollars or upwards, contracted by the master, owner, agent, or consignee of any ship or vessel within the state, on account of work done, or materials or articles furnished in the state, towards the building or repairing, furnishing or equipping such vessel, or such provisions and stores, furnished within the state, as were proper at the time for the use of such vessel, or on account of wharfage and the expense of keeping the vessel in port, are liens upon the vessel, tackle, apparel, and furniture, to be preferred to all other liens except mariners' wages. Such lien ceases, however, whenever the vessel leaves the state, or when she leaves the port where the debt was contracted for another within the state, in twelve days after such departure. (a)

10. Insolvent Laws.

Voluntary assignments on the application of an insolvent and his creditors. (b)-The object of this proceeding is to procure for the insolvent a discharge from certain obligations, and an exoneration of his person from future arrest in any action founded upon an existing indebtedness or liability. The petition must be signed by the debtor, and creditors residing in the United States, whose claims amount to two-thirds of the debts owing by him to persons residing within the United States. The petition must be accompanied by an affidavit from each creditor, stating that the sum therein specified is justly due, or will become due at a time mentioned, also the nature of the demand and the evidence and. consideration thereof, and that neither the petitioner nor any one for his use hath received from the insolvent or any other person, payment of any demand or any part thereof, in money or in any other way whatever, or any gift or reward upon an express or implied confidence that he should become a petitioner for such insolvent. The insolvent must accompany the petition with a schedule, containing a full and true account of all of his creditors, their places of residence, amount, nature, evidences, and securities of their claims, as well as a full and true inventory of his entire estate, real and personal, legal and equitable, and all incumbrances (b) Ib. 76 to 82.

(a) R. S. ii. 587.

Insolvent Laws.

thereon, and books and securities relating thereto. He must also annex to his petition and schedule an affidavit of the truth of the same, and that he has not at any time or in any manner whatever, disposed of, or made over any part of his estate for the future benefit of himself or his family, or in order to defraud any of his creditors, and that he has in no instance acknowledged a debt for a greater sum than he honestly and truly owed, and that he has not paid, or secured to be paid, or in any way compounded with his creditors, for the purpose of fraudulently obtaining the prayer of his petition.

Upon the receipt of these papers, it is the duty of the officer to make an order, requiring all creditors to show cause at a day and place to be named therein, why an assignment of the insolvent's estate should not be made, and he discharged from his debts. The officer is at the same time to direct a notice of the contents of this order to be published in the state newspaper, and in the newspaper of the county where the application is made, or if there be none, then in the newspaper nearest thereto; and if one-fourth part of the debts owing by such insolvent have accrued in the city of New-York, or be owing to creditors residing there, then in a newspaper of that city to be designated by him. If all the creditors of the insolvent reside within one hundred miles of the place where they are required to show cause, the notice must be published once in each week, for four weeks successively; otherwise once in each week for ten weeks successively. Any creditor desirous of opposing the discharge, may appear at the appointed time and place, and file his objections in writing, which, with the proofs and allegations of the parties, shall be submitted for determination to a jury. At the hearing, the insolvent may be examined upon oath, touching his estate and condition; and if it appears that he has collected any debts or demands, or made any transfer of any part of his personal or real estate, since the execution of his schedule, he will be required to pay or secure to be paid within thirty days to his assignees, the full amount or value of the same, excepting such portion as has been necessarily expended in his support or that of his family. In default thereof, or if it appear that the insolvent, in contemplation of insolvency or of petitioning for a discharge under this act, has made any sale or transfer, absolute

Insolvent Laws.

or conditional, of any part of his estate or interest therein, or has confessed a judgment or given any security with a view to give a preference for an antecedent debt to any creditor, he will be debarred. If the officer before whom the application is pending, is satisfied that the insolvent has fairly complied with the requisitions of the law, he shall direct him to make an assignment of his entire estate, excepting such articles as may be deemed necessary for his own use, to such person or persons as the petitioning creditors, or those owning the major part of the claims, shall nominate. The assignment shall vest in the assignees all the interest which the insolvent may possess at the time of executing the same, in any estate, real or personal, legal or equitable, and any contingent interest which may accrue to him within three years. The insolvent, upon the execution and proof of this assignment, is entitled to a discharge from all debts due at that time, or to become due afterwards, but contracted previously, founded upon contracts made or to be executed within the state, and from all debts owing to persons resident within the state at the time of the first publication of the notice of the application for such discharge, or owing to persons not residing within the state, but who have united in the petition for the discharge, or accepted a dividend from the estate; and also from all liabilities incurred by reason of the making or indorsing of any promissory note or bill of exchange previous to the execution of the assignment, or in consequence of the payment by any party to such instrument of the whole or any part of the money to be secured thereby, whether such payment be made prior or subsequent to the execution of the assign

Such discharge will also exonerate the insolvent from arrest or imprisonment, upon any proceeding founded upon contracts or liabilities previously incurred. The discharge will be rendered null and void by reason of any perjury, fraud, or collusion on the part of the insolvent in the premises.

Voluntary assignments by an insolvent debtor. (a)—Proceedings similar to those which have just been described, may be had upon the application of an insolvent debtor, praying that his estate may be assigned for the benefit of all his creditors, and his person thereafter exempted from arrest or imprisonment by reason of

(a) R. S. 86 to 88.

Insolvent Laws.

debts arising out of contracts or liabilities previously incurred; and if in prison to be released from imprisonment, and the discharge which may be granted shall have that operation. The liability however of the property of the insolvent is in no manner affected by this discharge.

Voluntary assignments by debtors imprisoned in execution. (a) -A debtor whose body has been taken in execution, may at any time, if the demand against him does not exceed five hundred dollars, or after the lapse of three months, if it does, be released from imprisonment, upon filing a petition for that purpose, accompanied by a full and true account of his condition as it was at the time of his imprisonment, and as it is at the period of his application, and an affidavit that such account is true, and that he has not in any manner disposed of any part of his property, with a view to his future benefit, or to defraud his creditors. If, upon notice served on the creditors, at whose instance he is imprisoned, and an opportunity afforded them to contest the allegations of the petition, the court or officer shall be satisfied that the proceedings on the part of the petitioner have been just and fair, they may order him to make an assignment of his property to persons designated for the benefit of the creditors upon whose executions he is imprisoned, and upon the execution thereof shall direct his discharge, his property still remaining liable. The assignees shall forthwith collect, sell, and distribute the proceeds of the insolvent's estate among the creditors by whom his body had been taken in execution previous to his petition, in proportion to the amounts due to them respectively. If a debtor remains in prison for the space of three months without applying for his discharge, he may be required by his creditor in writing to make application for the benefit of this act; and for default thereof for the space of thirty days after personal service of the notice, he will be forever debarred from doing so.

Proceedings by creditors to compel assignment by insolvent debtors. (b)-Where any person has been imprisoned for more than sixty days in any civil action, any creditor having a claim amounting to twenty-five dollars, upon which suit might then be brought, may file a petition to compel an assignment of such (b) Ib. ii. 82 to 85.

• (a) R. S. 88 to 91.

Insolvent Laws.

debtor's estate, and if two-thirds in amount of the creditors of such debtor residing in the United States, upon being made parties to the proceeding by a notice served on them, shall unite in the petition, and no good cause appear to the contrary, the officer making the order shall require the debtor by a certain specified day to deliver an account of his creditors, and an inventory of his estate upon oath, and to execute an assignment thereof. Unless that number unite in the petition, it will be dismissed. If upon being served with this order, the imprisoned debtor comply with it, and in all respects conform to the requisitions of the act concerning the voluntary assignments of insolvent debtors, he will be entitled to the discharge which is provided in that act. If he fails to obey the order, and shows no sufficient reason for his neglect, the officer by whom it was made may execute an assignment of all the estate of such debtor to the persons nominated by the petitioning creditors as assignees, for the benefit of all the creditors, which shall have the same operation and effect as if it had been voluntarily executed by the debtor upon the day of the first publication of notice to his creditors. Every debtor thus refractory will be afterwards precluded from obtaining any discharge from his imprisonment, except upon his petition and that of his creditors, under the act providing for the voluntary assignment of insolvent debtors; upon which petition the proceedings pointed out in that act may be had, except that the assignment must be made to the assignees appointed under the provisions of this chapter.

General provisions as to attachments and assignments. (a)— Applications for warrants of attachment, for the appointment of trustees, for the discharge of an insolvent debtor to compel an assignment, for the exemption of a debtor's person from imprisonment or arrest, may be made to circuit judges, supreme court commissioners, first judges of county courts,' and any other judges of such courts of the degree of counselor of law in the supreme court, recorders of cities.

Corporations are deemed creditors within the meaning of the provisions of these acts, and may present or unite in a petition as other creditors. Whenever partners or joint companies are creditors of any debtor, the petition or affidavit may be signed by

(a). R. S. ii. 91 to 95.