Page:United States Statutes at Large Volume 47 Part 1.djvu/1003

 72d CONGRESS. SESS. II. CH. 127. FEB RUARY 27, 1933 . 979 SEC. 393 . PROCEEDINGS UP ON CLAIM OF AN OTH ER PARTY.-If it cl 1-of another party. appea. - s that a person or corporation, alleged to have property of the judgment debtor, or to be indebted to him, claims an interest in the property adverse to him, or denies the debt, the judgment creditor may maintain an action against such person or corporation for the recovery of such interest or debt ; and the court or judge may, by order, forbid a transfer or other disposition of such interest or debt, until an action can be commenced and prosecuted to judgment. Such order may be modified or vacated by the judge granting the same, or the court in which the action is brought, at any time, upon such terms as may be just. SEC. 394 . DISOBEDIENCE OF ORDERS, HOW PUNISHED.-If any person, bedi h m ofor diSo- party, or witness disobey an order of the referee, properly made, in the proceedings before him under this subchapter, he may be pu n- ished by the court or judge ordering the reference, for a contempt. CHAPTER 13. ACTIONS IN PARTICULAR CASES TCTIORCASES. ACTIONS FOR FORECLOSURE OF MORTGAGES Foreclosure of mort- gages. SEC. 395 . PROCEEDINGS IN FORECLOSURE sure$ .--There can be but P1•• " one action for the recovery of any debt, or the enforcement of any right secured by mortgage upon real or personal property, which action must be in accordance with the provisions of this subchapter . In suc h action the cou rt may, by its j udgment, direct t he sale of the encumbered property (or so much thereof as may be necessary) and the application of the proceeds of the sale to the payment of the costs of court, and the expenses of the sale, and the amount due plaintiff, including, where the mortgage provides for the payment of attorney's fees, such sum for such fees as the court shall find rea- sonable, not exceeding the amount named in the mortgage . The court may, by its judgment, or at any time after judgment, appoint a commissioner to sell the encumbered property . It mus t require of him an undertaking in an amount fixed by the court, with sufficient sureties, to be approved by the judge, to the effect that the comm issioner will fai thfully perform the duti es of hi s office accord- ing to law. Before entering upon the discharge of his duties he must file such undertaking, so approved, together with his oath that he will ,faithfully perform the duties of his office. If it appear from the marshal's return, or from the commissioner's report, that the proceeds are insufficient and a balance still remains du e, judgment mu st th en be docketed icy the clerk in the manner provided in this code for such balance against the defendant or de- fendants ersonally liable for the debt. No pers on hold ing a con- veyance from or under the mort gage e of the property mortgaged, or having a lien thereon, which conveyance or lien does not appear of record in the office of the registrar of property at the time of the commencement of the action, need be made a party to such action, and the judgment therein rendered, and the proceedings therein had, are as conclusive against the party holding such unrecorded con- veyance or lien as if he had been a party to the action. If the court appoint a commissioner for the sale of the property, he must sell it in the manner provided by law for the sale of like property by the marshal upon execution ; and the provisions of sections 349 to 386 are hereby made applicable to sale made by such Ante, p. 968. co mmiss ioner, and the p owers there in gi ven a nd the duti es th erein imposed on the marshal are exten ded to such commissioner. Surp lus money to be SEC. 396. S URP LUS MONEY TO BE DEPOSITED IN COURT:If there be deposited iu court. surplus money remaining, after payment of the amount due on the