Page:United States Statutes at Large Volume 30.djvu/604

 FIFTY-FIFTH CONGRESS. Srzss. II. C11. 541. 1898. 565 rupt, and the same is not exempt from execution and liability for debt by the law of his domicile, be and remain a part of the assets and estate of the bankrupt and shall pass to his said trustee, whose duty it shall be to recover and reclaim the same by legal proceedings or otherwise · for the benefit of the creditors. And all conveyances, transfers, or f C°¤·"¤¥=¤¤*¤¤t!**¤=*!· incumbrances of his property made by a debtor at any time within four nid; $Si).i'lfZaZr dal: months prior to the filing of the petition against him, and while insol- ""“· vent, which are held null and void as against the creditors of such debtor by the laws of the State, Territory, or District in which such property is situate, shall be deemed null and void under this Act again st -*0*6 ¤¤¤¤r ¤¤¤ wtthe creditors of such debtor if he be adjudged a bankrupt, and such property shall pass to the assignee and be by him reclaimed and recovered for the benefit of the creditors of the bankrupt. . f That all levies, judgments, attachments, or other liens, obtained- th¥·*¢¤j;,•>¤=-· ·=~¤*¤•i through legal proceedings against a person who is insolvent, at any mglg °g°lPr°°°°d` time within four months prior to the lilin g of a petition in bankruptcy against him, shall be deemed null and void in case he is adjudged a —v¤id.etc. ` bankrupt, and the property affected by the levy, judgment, attachment, Evfgveuy P·¤¤·¤¤ *¤ or other lien shall be deemed wholly discharged and released from the us °°' ~ same, and shall pass to the trustee as a part of the estate of the bankrupt, unless the court shall, on due notice, order that the right under such levy, judgment, attachment, or other lien shall be preserved for the benefit of the estate; and thereupon the same may pass to and shall be preserved by the trustee for the benent of the estate as aforesaid. And the court may order such conveyance as shall be necessary ;°°°“'°8';**Y°“*°’“* to carry the purposes of this section into effect: Provided, That noth- #2 ing herein contained shall have the effect to destroy or impair the title rm-cnmrm mus. obtained by such levy, judgment, attachment, or other lien, of a bona iide purchaser for value who shall have acquired the same without notice or reasonable cause for inquiry. Sec. 68. Sm-Orrs um OouNmuoLAms.—a In all cases of mutual °,_,$§_*:*·¤¤¤°¤¤*•· debts or mutual credits between the estate of a bankrupt and a creditor i the account shall be stated and one debt shalrbe set off against the other, and the balance only shall be allowed or paid. b A set·oft' or counterclaim shall not be allowed in favor of any debtor ·°°““°"°‘· of the bankrupt which (1) is not provable again st the estate; or (2) was purchased by or transferred to him after the filing of the petition, or within four months before such filing, with a view to such use and with knowledge or notice that such bankrupt was insolvent, or had committed an act of bankruptcy. Sec. 69. Possnssiou or Pnorsnr Y.-a A judge may, upon satis- "};j•··•·*·¤ ¤* PNP factory proof, by atiidavit, that a bankrupt against whom an involnn- -selpnre ut snr. tary petition has been Bled and is pending has committed an act of ’“P"P'°P°"Y· bankruptcy, or has neglected or is neglecting, or is about to so_neglect his property that it has thereby deteriorated or is thereby deteriorating or is about thereby to deteriorate in value, issue a warrant to the marshal to seize and hold it subject to further orders. Before such war- ;0r:fi¤¤¤¤r¤ w rife rant is issued the petitioners applying therefor shall enter into a bond ‘ in such an amount as the judge shall tix, with such sureties as he shall approve, conditioned to indemnify such bankrupt for such damages as he shall sustain in the event such seizure shall prove to have been wrongfully obtained. Such property shall bereleased, if such bankrupt -¤>l¤··° •' P¤•P°'*¥· shall give bond in a sum which shall be fixed by the judge, with such ' snreties as he shall approve, conditioned to turn over such property, or pay the value thereof in money to the trustee, in the event he is adjudged a bankrupt pursuant to such petition. Sec. 70. TrrL1•1 1*0 Pnormnrr.-a The trustee of the estate of a bank- Jfjg: gg r•;>:·::r· rupt, upon his appointment and qualification, and his successor or suc- ' cessors, if he shall have one or more, upon his or their appointment and qualification, shall in turn be vested by operation of law with the title of the bankrupt, as of the date he was adjudged a bankrupt, except in —°*°°¤'*· °*°· so far as it is to property which is exempt, to all (1) documents relating