DEBTOR AND CREDITOR LAW Laws 1909, Chap. 17. AN ACT relating to debtors and creditors, constituting chapter twelve of the consolidated laws. Became a law, February 17, 1909, with the approval of the Governor. Passed, three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows: CHAPTER 12 OF THE CONSOLIDATED LAWS DEBTOR AND CREDITOR LAW Article 1. Short title (§ 1). 2. General assignments for the benefit of creditors (§§ 2-29). 3. Insolvent's discharge from debts (§§ 50-88). 4. Insolvent's exemption from arrest and imprisonment (§§ 100-111). 5. Judgment debtor's discharge from imprisonment 6. Discharge of bankrupt from judgment (§ 150). 8. Compositions by joint debtors (§§ 230-233). 9. Payment of debts of incompetent person (§§ 250 255). 10. Laws repealed; when to take effect (§§ 280, 281). Section 1. Short title. ARTICLE 1 Short Title § 1. Short title. "Debtor and Creditor Law." This chapter shall be known as the 446 § 2 a '14 c 360 ARTICLE 2 General Assignments for the Benefit of Creditors Section 2. Jurisdiction of proceedings. 3. Requisites of general assignment. 5. Notice to creditors to present claims. 6. Bond of assignee. 7. Further security. 8. *Discharge of assignee; accounting; correction of schedules. 9. Failure to file bond. 10. Action on bond; application of recovery. 11. Proceedings in case of death of assignee. 14. Service of citation. 15. Time of service of citation. 16. Service by publication. 17. Personal service without the state. 18. Service upon minors and incompetent persons. 19. Service upon partners. 20. Appearance of claimants not cited. 21. Power of court on accounting. 22. Examination of witnesses. 23. Effect of orders; power of judge and duties of clerk. 24. Sale and compromise of claims. 25. General powers of court. 26. Trial, costs and commissions. 28. Limitation of preferences. 29. Appraisal of insolvent estate in the hands of as signees. § 2. Jurisdiction of proceedings. The term "judge " when used in this article shall apply equally to a county judge of the county within which the assignment is recorded and to justices of the supreme court, and the term "court" when used in this article shall, in like manner, apply to the county court of such county and to the supreme court. All applications hereunder made in the supreme court shall be made to the court, or a justice thereof within the judicial district where the assignment is recorded, and all proceedings and hearings under this article had in the supreme court upon the return of a citation shall be had at a special term of said court held in the county where the judgSo in original. †29 inserted by L. 1909, ch. 240, § 10. ment debtor resided at the time of the assignment, or in case of an assignment by copartners, in the county where the principal place of business of such copartners was at the time of such assignment. § 3. Requisites of general assignment. Every conveyance or assignment made by a debtor of his estate, real or personal, or both, to an assignee for the creditors of such debtor, shall be in writing, and shall specifically state therein the residence and the kind of business carried on by such debtor at the time of making the assignment, and the place at which such business shall then be conducted, and if such place be in a city, the street and number thereof, and if in a village or town such apt designation as shall reasonably identify such debtor. Every such conveyance or assignment shall be duly acknowledged before an officer authorized to take the acknowledgment of deeds and shall be recorded in the county clerk's office in the county where such debtor shall reside or carry on his business at the date thereof. An assignment by copartners shall be recorded in the county where the principal place of business of such copartners is situated. When real property is a part of the property assigned, and is situated in a county other than the one in which the original assignment is required to be recorded, a certified copy of such assignment shall be filed and recorded in the county where such property is situated. The assent of the assignee, subscribed and acknowledged by him, shall appear in writing, embraced in or at the end of, or indorsed upon the assignment, before the same is recorded, and, if separate from the assignment, shall be duly acknowledged. § 4. Debtor's schedule. A debtor making an assignment shall, at the date thereof or within twenty days thereafter, cause to be made, and filed with the county clerk of the county where such assignment is recorded, an inventory or schedule containing: 1. The name, occupation, place of residence, and place of business, of such debtor; 2. The name and place of residence of the assignee; 3. A full and true account of all the creditors of such debtor, stating the last known place of residence of each, the sum owing to cach, with the true cause and consideration therefor, and a full statement of any existing security for the payment of the same; 4. A full and true inventory of all such debtor's estate at the date of such assignment, both real and personal, in law and in equity, with the incumbrances existing thereon, and of all vouchers and securities relating thereto, and the nominal as well as actual value of the same according to the best knowledge of such debtor; 447 § 3 a '14 c 360 447 § 4 a '14 c 360 448 448 § 6 a '14 c 360 5. An affidavit made by such debtor, that the same is in all respects just and true. In case such debtor shall omit, neglect or refuse to make and deliver such inventory or schedule within the twenty days required, the assignee named in such assignment shall, within thirty days after the date thereof, cause to be made, and filed as aforesaid such inventory or schedule as above required, in so far as he can; and for such purpose the judge shall, at any time, upon the application of such assignee, compel by order such delinquent debtor, and any other person to appear before him and disclose, upon oath, any knowledge or information he may possess, necessary to the proper making of such inventory or schedule. The assignee shall verify the inventory and schedule so made by him, to the effect that the same is in all respects just and true to the best of his knowledge and belief. In case the said assignee shall be unable to make and file such inventory or schedule, within said thirty days, the judge may, upon application upon oath, showing such inability, allow him such further time as shall be necessary, not exceeding sixty days. If the assignee fail to make and file such inventory or schedule within said thirty days or such further time as may be allowed, the judge shall require, by order, the assignee forthwith to appear before him, and show cause why he should not be removed. Any person interested in the trust estate may apply for such order and demand such removal. The books and papers of such delinquent debtor shall at all times be subject to the inspection and examination of any creditor. The judge is authorized, by order, to require such debtor or assignee to allow such inspection or examination. Disobedience to such order is a contempt, and obedience to such order may be enforced by attachment. § 5. Notice to creditors to present claims. The judge may, upon the petition of the assignee, authorize him to advertise for creditors to present to him their claims, with the vouchers therefor, duly verified, on or before a day to be specified in such advertisement, not less than thirty days from the last publication thereof, which advertisement or notice shall be published in two newspapers, to be designated by the judge, as most likely to give notice to the persons to be served, not less than once a week for six successive weeks. § 6. Bond of assignee. The assignee named in any such assignment shall, within thirty days after the date thereof, and before he shall have any power or authority to sell, dispose of or convert to the purposes of the trust any of the assigned property, enter into a bond to the people of the state of New York, in an amount to be ordered and directed by the judge, with sufficient sureties to be approved of by such judge, and conditioned for the faithful discharge of the duties of such assignee, and for the due accounting for all moneys received by him, which bond shall be filed in the clerk's office of the county where such assignment is recorded, but in case the debtor shall fail to present such inventory within the twenty days required, then the assignee, before the ten days thereafter shall have elapsed, may apply to said judge by verified petition for leave to file a provisional bond, until such time as he may be able to present the schedule or inventory as herein before provided. § 7. Further security. The judge may, upon his own motion or upon the application of any party in interest, and on such notice as he may direct to be given to the assignor, assignee and surety, require further security to be given whenever, in his judgment, the security afforded by the bond on file is not adequate. § 8. Discharge or removal of assignee; correction of inventory or schedule; supplemental inventories or schedules. The judge shall, in the case provided in section four, and may also, at any time, on the petition of one or more creditors, showing misconduct or incompetency of the assignee, or on petition of the assignee himself, showing sufficient reason therefor, and after due notice of not less than five days to the assignor, assignee, surety and such other person as the judge may prescribe, remove or discharge the assignee, and appoint one or more in his place, and order an accounting of the assignee so removed or discharged, and may enjoin such assignee from interfering with the assignor's estate, and make provision by order for the safe custody of the same, and enforce obedience to such injunction and orders by attachment; and, upon the discharge of the assignee upon his own application, such assignee's bond shall be canceled and discharged. The new assignee shall give a bond, to be approved as required by section six. The judge shall have power, by order, to require or allow any inventory or schedule filed to be corrected or amended. The judge may also require and compel, from time to time, supplemental inventories or schedules to be made and filed within such time. as he shall prescribe, and to enforce obedience to such orders by attachment. § 9. Failure to file bond. A failure to file any bond required by or under this article, within the specified time will not |