196 



CONGRESS. (UNIFORM SYSTEM OF BANKRUPTCY.) 



party proceeded against was not insolvent as defined 

 in this act at the time of the filing the petition 

 against him, and if solvency at such date is proved 

 by the alleged bankrupt the proceedings shall be 

 dismissed, and under said subdivision 1 the burden 

 of proving solvency shall be on the alleged bank- 

 rupt. 



'</. Whenever a person against whom a petition 

 has been filed as hereinbefore provided under the 

 second and third subdivisions of this section takes 

 i-i-iu- with and denies the allegation of his insol- 

 vency, it shall be his duty to appear in court on the 

 hearing, with his books," papers, and accounts, and 

 Mihmit to an examination, and give testimony as to 

 all matters tending to establish solvency or insol- 

 vency, and in case of his failure to so attend and 

 submit to examination the burden of proving his 

 solvency shall rest upon him. 



" e. Whenever a petition is filed by any person for 

 the purpose of having another adjudged a bank- 

 rupt, and an application is made to take charge of 

 and hold the property of the alleged bankrupt or 

 any part of the same, prior to the adjudication and 

 pending a hearing on the petition, the petitioner or 

 applicant shall file in the same court a bond, with 

 at least two good and sufficient sureties, who shall 

 reside within the jurisdiction of said court, to be 

 approved by the court or a judge thereof, in such 

 sum as the 'court shall direct, conditioned for the 

 pay merit, in case such petition is dismissed, to the 

 respondent, his or her personal representatives all 

 costs, expenses, and damages occasioned by such 

 seizure, taking, and detection of the property of 

 the alleged bankrupt. 



"If such petition be dismissed by the court or 

 withdrawn by the petitioner, the respondent or re- 

 spondents shall be allowed all costs, counsel fees, 

 expenses, and damages occasioned by such seizure, 

 taking, or detention of such property. Counsel 

 fees, costs, expenses, and damages shall be fixed and 

 allowed by the court and paid by the obligors in 

 such bond. 



" SEC. 4. Who may become bankrupts. a. Any 

 person who owes debts, except a corporation, shall 

 be entitled to the benefits of this act as a voluntary 

 bankrupt. 



" b. Any natural person, except a wage earner or a 

 person engaged chiefly in fanning or the tillage of 

 the soil, any unincorporated company, and any cor- 

 poration engaged principally in manufacturing, 

 trading, printing, publishing, or mercantile pur- 

 suits, owing debts to the amount of $1,000 or over, 

 may be adjudged an involuntary bankrupt upon 

 default or an impartial trial, and shall be subject 

 to the provisions and entitled to the benefits of this 

 act. rrivate bankers, but not national banks or 

 banks incorporated under State or Territorial laws, 

 may be adjudged involuntary bankrupts. 



" SEC. 5. Partners. a. A partnership during the 

 continuation of the partnership business or after 

 its dissolution and before the final settlement there- 

 of, may be adjudged a bankrupt. 



"b. The creditors of the partnership shall appoint 

 the trustee; in other respects so far as possible the 

 c-tatc shall be administered as herein provided for 

 other estates. 



"c. The court of bankruptcy which lias jurisdic- 

 tion of one of the partners may have jurisdiction 

 of all the partners and of the administration of the 

 partnership and individual property. 



"a". The trustee shall keep separate accounts of 

 the partnership property and of the property belong- 

 ing to the individual partners. 



"e. The expenses shall be paid from the partner- 

 ship property and the individual property in such 

 proportion as the court shall determine. 



"/ 1 he net proceeds of the partnership property 



shall be appropriated to the payment 'of the part- 

 nership debts, and the net proceeds of the individ- 

 ual estate of each partner to the payment of his 

 individual debts. Should any surplus remain of 

 the property of any partner after paying his indi- 

 vidual debts, such surplus shall be added to the 

 partnership assets and be applied to the payment 

 of the partnership debts. Should any surplus of 

 the partnership property remain after paying the 

 partnership debts, such surplus shall be added to 

 the assets of the individual partners in the pro- 

 portion of their respective interests in the part- 

 nership. 



" g. The court may permit the proof of the claim 

 of the partnership estate against the individual 

 estates, and vice versa, and may marshal the assets 

 of the partnership estate and individual estates so 

 as to prevent preferences and secure the equitable 

 distribution of the property of the several estates. 



"/t. In the event of one or more but not all of 

 the members of a partnership being adjudged bank- 

 rupt, the partnership property shall not be admin- 

 istered iu bankruptcy, unless by consent of the 

 partner or partners not adjudged bankrupt; but 

 such partner or partners not adjudged bankrupt 

 shall settle the partnership business as expedi- 

 tiously as its nature will permit, .and account for 

 the interest of the partner or partners adjudged 

 bankrupt. 



'SEC. 6. Exemptions of bankrupts. a. This act 

 shall not affect the allowance to bankrupts of the 

 exemptions which are prescribed by the State laws 

 in force at the time of the filing of the petition iu 

 the State wherein they have had their domicile for 

 the six months or the greater portion thereof 

 immediately preceding the filing of the petition. 



" SEC. 7. Duties of bankrupts. a. The bankrupt 

 shall (1) attend the first meeting of his creditors, if 

 directed by the court or a judge thereof to do so, 

 and the hearing upon his application for a dis- 

 charge, if filed ; (2) comply with all lawful orders 

 of the court ; (3) examine the correctness of all 

 proofs of claims filed against his estate ; (4) execute 

 and deliver such papers as shall be ordered by the 

 court ; (5) execute to his trustee transfers of all his 

 property in foreign countries; (6) immediately in- 

 form his trustee of any attempt, by his creditors 

 or other persons, to evade the provisions of this act, 

 coming to his knowledge ; (7) in case of any person 

 having to his knowledge proved a false claim 

 against his estate, disclose that fact immediately to 

 his trustee ; (8) prepare, make oath to, and file in 

 court within ten days, unless further time is granted, 

 after the adjudication, if an involuntary bankrupt, 

 and with the petition if a voluntary bankrupt, a 

 schedule of his property showing the amount and 

 kind of property, the location thereof, its money 

 value in detail, and a list of his creditors, show ii g 

 their residences, if known, if unknown, that fact to 

 be stated, the amounts due each of them, the con- 

 sideration thereof, the security held by them, if 

 any. and a claim for such exemptions as he may be 

 entitled to. all in triplicate, one copy of each for the 

 clerk, one for the referee, and one for the trustee ; 

 and (9) when present at the first meeting of 1 is 

 creditors, and at such other times as the court shall 

 order, submit to an examination concerning the' 

 conducting of his business, the cause of his bank- 

 ruptcy, his dealings with his creditors and other 

 persons, the amount, kind and whereabouts of his 

 property, and. in addition, all matters which nuy 

 affect the administration and settlement of his 

 estate; but no testimony given by him shall lie 

 offered in evidence against him in any criminal 

 proceeding. 



" Provided, however. That he shall not be required 

 to attend a meeting of his creditors, or at or for an 



