Page:United States Statutes at Large Volume 47 Part 1.djvu/1076

 1052 Notice. Hearing. Order to issue, to allow loan. Contentg. Execution of note and mortgage. To be valid as against all parties. Irregular ity in pro - ceedings not to impair. Provisos. Deficiency on fore° clos ure. 72d CONGR ESS. SESS. II. CH. 127. FEBRU ARY 27, 1933 . . Third. The order to show cause may be personally served on the persons interested in the estate, at least ten days before the time appointed for hearing the petition, or may be published for fo ur successive weeks in a newspaper of general circulation in the Canal Zone. Fourth. PROCEEDINGS UPON HE ARIN G .- Upon the hea ring of the ord er to show cause, having first r eceived satisfac tory proof of pe r- son al service or pu blication of the order to show c ause, the court or jud~*e must proceed to hear the petition and any objections that may be filed or presented thereto. Upon such hearing, witnesses may be compelled to attend and testify, in the same manner, and with like effect, as in other cases ; and if, after a full hearing, the court or jud ge is satisfied that it will be for the advantag e of the estate to hypothecate the whole or any portion of the property, an order must be made authorizing, empowering, and directing the executor o r admi nistr ator, or th e gua rdian of such minor or incompetent person, to make such mortgage, pledge, or other lien, and a promis- sory note or notes to .the lender, for the amount of the loan, to be secured by said mortgage or other lien. WHA T OR DER MAY PRESCRIBE .-The order may direct that a lesser amount than that named in the petition be borrowed, and may pre- scribe the maximum rate of interest and period of the loan, and may direct in what coin or currency it shall be paid, and require that the interest and th e whole or any p art of the princ ipal be paid, fr om time to time, out of the whole estate or any part thereof. Fifth. EXECUTION OF NOTE AND MORTGAGE.-After the making of the order to mortgage, the executor, administrator, or guardian of a minor or of an incompetent person shall execute and deliver a promissory note or notes for the amount and period specified in the order, and shall execute a mortgage, pledge, or other lien setting forth therein that it is made by authority of the order, and giving the date of such order. The note or notes and mortgage or other_ lien shall be signed by the executor, administrator, or guardian as such, and shall create no personal liability against the person so signing. Sixth. Every note or notes and mortgage or. other lien so made shall be effectual to mortgage and hypothecate all the right, title, an d intere st which the dec edent, m inor, or incompe tent per son has in the property des cribed therein. No irregularity in the proceedings shall impair or invalidate the same or the note or notes and mortgage or other lien given in the pursuance thereof, and -the mortgagee, his heirs and assigns, shall have and possess the same rights and remedies on the note or notes and mortgage or other lien as if it had been made by the decedent prior to his death, the minor after reaching the age of maturity, or the incompetent person when legally competent. DEFICIENCY O N FORECLOSURE .-Provided, however, That up on any foreclosure, if the proceeds of the encumbered property are insuffi- cie nt to pay the no te or notes, and mortgage, or ot her lien, no jud g- ment or claim for any deficiency of such proceeds to satisfy the note or notes and mortgage, or the costs or expenses of sale, shall be had or allowed, except in cases where the note or notes and mortgage were given to pay, reduce, extend, or renew a lien or mortgage sub- sisting on the property, or some part thereo :, at the time of the death of the decedent, and the indebtedness secured by such lien or mort- gage was an allowed and approved claim against his estate, or a lien upon t he interest of t he minor in said property at the time it vested in him, or upon the estate of the incompetent at the time the in- competency of the incompetent person was so declared by the court :