TWENTY-SEVENTH CONGRESS. Sess.I. Ch.9. 1841.

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within two years after the declaration and decree of bankruptcy, or afterthe cause of suit shall first have accrued.

Sec. 9. And be it further enacted, That all sales, transfers, and otherconveyances of the assignee of the bankrupt’s property and rights ofproperty, shall be made at such times and in such manner as shall beordered and appointed by the court in bankruptcy; and all assets re-ceived by the assignee in money, shall, within sixty days afterwards,be paid into the court, subject to its order respecting its future safe-keeping and disposition ; and the court may require of such assignee abond, with at least two sureties, in such sum as it may deem proper,conditioned for the due and faithful discharge of all his duties, and hiscompliance with the orders and directions of the court; which bondshall be taken in the name of the United States , and shall, if there beany breach thereof, be sued and sueable, under the order of such court,for the benefit of the creditors and other persons in interest.

Sec. 10. And be it further enacted, That in order to ensure a speedysettlement and close of the proceedings in each case in bankruptcy, itshall be the duty of the court to order and direct a collection of theassets, and a reduction of the same to money, and a distribution thereofat as early periods as practicable, consistently with a due regard to theinterests of the creditors : and a dividend and distribution of such assetsas shall be collected and reduced to money, or so much thereof as canbe safely so disposed of, consistently with the rights and interests ofthird persons having adverse claims thereto, shall be made among thecreditors who have proved their debts, as often as once in six monthsfrom the time of the decree declaring the bankruptcy; notice of suchdividends and distribution to be given in some newspaper or newspapersin the district, designated by the court, ten days at least before the ordertherefor is passed ; and the pendency of any suit at law or in equity, byor against such third persons, shall not postpone such division and dis-tribution, except so far as the assets may be necessary to satisfy thesame; and all the proceedings in bankruptcy in each case shall, if prac-ticable, be finally adjusted, settled, and brought to a close, by the court,within two years after the decree declaring the bankruptcy. And whereany creditor shall not have proved his debt until a dividend or distribu-tion shall have been made and declared, he shall be entitled to bepaid the same amount, pro rata, out of the remaining dividends or dis-tributions thereafter made, as the other creditors have already received,before the latter shall be entitled to any portion thereof.

Sec. 11. And be it further enacted, That the assignee shall have fullauthority, by and under the order and direction of the proper court inbankruptcy, to redeem and discharge any mortgage or other pledge, ordeposite, or lien upon any property, real or personal, whether payablein presenti or at a future day, and to tender a due performance of theconditions thereof. And such assignee shall also have authority, by andunder the order and direction of the proper court in bankruptcy, tocompound any debts, or other claims, or securities due or belonging tothe estate of the bankrupt; but no such order or direction shall be madeuntil notice of the application is given in some public newspaper in thedistrict, to be designated by the court, ten days at least before the hear-ing, so that all creditors and other persons in interest may appear andshow cause, if any they have, at the hearing, why the order or directionshould not be passed.

Sec. 12. And be it further enacted, That if any person, who shallhave been discharged under this act, shall afterward become bankrupt,he shall not again be entitled to a discharge under this act, unless hisestate shall produce (after all charges) sufficient to pay every creditorseventy-five per cent, on the amount of the debt which shall have beenallowed to each creditor.

Sales, &c. bythe assignee,when and howto be made.

Assignee maybe required togive bond.

Collection ofassets, distribu-tion, &c.

Dividend anddistribution.

Notice thereofto be given.

Proceedings,if practicable, tobe closed in twoyears.

Debts notproved until adividend hasbeen made,how to be paid.

Assignee, byorder of thecourt, may re-deem and dis-charge anymortgage, &c.

Andcompounddebts, &c. duethe estate.

Persons oncedischarged, be-coming bank-rupts again, notto be dischargedunless. &c.