Page:United States Statutes at Large Volume 47 Part 1.djvu/1365

 72d CONGRESS. SESS. II. CH. 12 8. FEB RUARY 27, 1933 . CROSS REFERENCE Insolvency defined, see section 671 . SEC. 1668. CERTAIN TRANSFERS NOT AFFECTED .--The provisions of th is subchapter do not prevent a person residing in any state or country from making there, in good faith, and without intent to evade the laws of the Canal Zone, a transfer of property situated within it ; but such person can not make a general assignment of property situated in the Canal Zone for the satisfaction of all his creditors, except as in this subchapter provided ; nor do the provisions of this subchapter affect the power of a person, although insolvent, and whether residing within or witho ut the C anal Zone, to tra nsfer property in the Canal Zone, in good faith to a particular creditor, or creditors, or to some other person or persons in trust fo r such particu- lar creditor or creditors, for the purpose of paying or securing the whole or part 'of a debt owing to such c reditor or credit ors, whether in his or their own right or otherwise. SEC. 1669. WHAT DEBTS MAY BE sFcuRED.-An assignment for the benefit of creditors may provide for any subsisting; liability of the assignor which he might lawfully pay, whetl absolu te or cont ingent. SEC. 1670. ASSIGNMENT'WHEN VOID.-An assignment for the benefit of creditors is void against any creditor of the assignor not assenting thereto, in the following cases : First. If it give a preference of one debt or class of debts. ewer another. Second. If it tend to coerces any creditor to release or compromise his demand. Third. If it provide for the payment. of any claim knownn to the assignor to be false or fraudulent ; or for the payment of more upon any claim than is known to be. justly due from the assignor. Fourth. If it reserve any nterest in the assigned propert~, or in any part thereof, to the assignor, or for his benefit, before all his existi ng debts are pai d. Fifth. If it confer upon the assignee any power which, if exercised, might prevent or delay the immediate conversion of the assigned property to the purposes of the trust. Sixth. If it exempt him from liability for neglect of duty or misconduct. CROSS REFE08ENClES Preferences by special partnersh ip, see sec tion 1138 . Preferences to creditors, see se cti on 1657 . SEC. 1671. ASSIGNMENT TC BE IN WRITING.-An assignment for the benefit of creditors must be in writing, subscribed by'the assignor, or by his agent thereto authorized in writing, and the transfer by the ma rshal must also be in writing, s ubscribed by the marshal in his official capacity. Both such assignment and such transfer must be acknowledged, or proved and certified, in the mode prescribed by cha pter 22 of this code, and be rec orded as require d by section 167 6. CROSS REFERENCES Form of assignment, see section 1663 . Reco rdin g of ass ignm ent, see sec tion s 16 72 and 1676. SEC. 1672. COMPLIANCE WITH PROVISIONS OF LAST SECTION NECESSARY TO VALIDITY OF ASSIGNMENT .-Unless the provisions of section 1671 'arc complied with, an assignment for the benefit of creditors is void against every creditor of the assignor not assenting thereto. Ante,p.1221. Certain transfers not affected. What debts may be secured. Assignment when void. Ante, p . 1277. Ante, p. 1338. Ass ignment to be in writing. 1341 Ante, p. 1164. Pact, p. 1342. Ante, p. 1339 . Pan. p. 1342. Compliance with provisions of last sac- on necessary to valid- icy of assignment.