Page:United States Statutes at Large Volume 47 Part 1.djvu/1086

 1062 Payment of debts. 72d CONG RESS. SESS. II. CH. 127. FEBR UARY 27, 1933. PAYMENT OF DEBTS OF ESTATE Order. SEC. 875 . ORDER IN WHIC H DEB TS MU ST BE PAID .-The debts of the estate must be p aid in the foll owing orde r 1. Fu neral expe nses ; 2. The expenses of the last sickness ; 3. Debts due to the United States ; 4. J udgme nts r ender ed ag ainst the deced ent in his life time, and mortgages and other liens in the order of their date ; 5. All other de man ds ag ai nst the estate. Debts payable in If a d ebt is in a particular kin d of mo ney or currenc particular kmd of cur- payable y Yf rency. it must be pa id on ly in such mone y or curre ncy. If the estate is insolvent, no greater rate of interest must be paid upon any debt, 'from the time of the first publication of notice to creditors, than is allowed by law on judgments. Limitation on prior- SEC. 876 . WHERE PROPERTY INSUFFICIENT TO PAY MORTGAGE :The ity of mortgage, etc. preference given in section 875 to a mortgage or lien only extends to the proceeds of the property subject to the mortgage or lien. If the proceeds of such property are insufficient to pay the mortgage or lie n, the par t remaining unsatisfied must be cla ss ed wi th ge ner al demands against the estate. dividends If esn t o be befp a id aid . ' SEC. 877 . ESTATE INSUFFICIENT, A DIVIDEND TO BE PA ID.- If the estate is insufficient to pay all the debts of any one class, each creditor must be paid a dividend in proportion to his claim ; and no c redito r of any one clas s sha ll re ceive any payme nt un til all th ose of the preceding class are fully paid. Expenses of funeral SE C. 878. FUNE RAL E XPENS ES AND EXP ENSE S OF LAST SICKNESS : and leaf sick ness. The executor or administrator, as so on as he has sufficient funds in his hands, must pay the funeral expenses and the expenses of the la st sickness, and the allowance made to the family of the decedent. He may retain in his ha nds the necessary expenses of administration, but he is not obliged to pay any other debt or any legacy until, as prescribed in this sub-chapter, the payment has been ordered by the court. Payment o f debts by SEC. 879. ORDER FOR PAYMENT OF DEBTS, AND DISCHARGE OF THE court order. EXECU TOR OR ADM INIST RATOR .-U pon the se ttlem ent of the acco unt of the, execu tor or administrator, provided for in section 863, the court must make an order for the payment of the debts, as the circum- stances of the estate require. If there are not sufficient funds in the han ds of the executor or administrator, the court mus t spe ci fy in Discharge of execu- the decree the sum to be paid to each creditor. If the whole property tor, etc' of the estate is exhausted by su ch payment or distribution, su ch account must be considered as a final account, and the executor or administrator is entitled to his discharge on producing and filing the necessary vouchers and proofs showing that such payments ha ve be en made, and that he has fully complied with the decree of the court. Disputed and contin- SE C. 880. PROVISION FOR DISPUTED AND CONTINGENT CLAIMS .- I f o a gent clai ms. there is any claim not due, or any contingent or disputed claim against the estate, the amount thereof, or such part of the same as the holder would be entitled to if the claim were due, established, or bsolute, must be pa id in to the court, and there remain, to be p aid ver to the part y whe n he becom es en title d thereto ; or, if he fails to est ablis h his clai m, to be p aid o ver or dis tribu ted as the circ um- stances of the estate require. If any creditor who se claim has be en allowed, but is not yet due, appears and assents to a deduction therefrom of the legal interest for the time the claim has yet to run, he is entitled to be paid accordingly. The p aymen ts pr ovide d for