Page:United States Statutes at Large Volume 47 Part 1.djvu/1493

 72d CONGRESS. SESS. II. CH. 204. MARCH 3, 1933 . 1469 "(h) The terms of an extension proposal may extend the time of Terms of. payment of either or both unsecured debts and secured debts the security for which is in the actual or constructive possession of the debtor or of the custodian or receiver, and may provide for priority of payments to be made during the period of extension as between secured and unsecured creditors . It may also include specific under- takings b y the deb tor durin g the per iod of th e extensi on, inclu ding provision s for pay ments on account, and may p rovide fo r supervi sory or other control over the debtor's business or affairs during such pe riod by a creditor s' commit tee or ot herwise, and for the termi na- tion of such period under certain specified conditions : Provided, Proviso. not at- That the provision s of this section shall not affect t he allowa nces feeted . and exemp tions to debtors a s are pro vided for bankrupt s under t itle uos 3c. pza g s. 11, chapter 3, section 24, of the United States Code, and such allow- ances and exemptions shall be set aside for the use of the debtor in the manner provided for bankrupts. " (i ) Upon its confirmat ion an ex tension p roposal s hall be b inding t of confirma- upon th e debt or and his u nsecur ed and secure d cred itors affect ed the reb y Provided, however, That such exten sion or c ompos itio n r ien or sec ured c red- shall not reduce the amount of or impair the lien of any secured itor. creditor, but shall affect only the time and method of its liquidation . Upon the confirmation of a composition the consideration Dis tribution of con- shall be distrib uted as the court shall direct, a nd the case dis missed
 * ontfect
 * ironof'compos~ton.

Provided, That -the debts having priority of payment under title 11, o- ,a- payments, chapter 7, section 104, of the United States Code, for bankrupt debts having priority. y. estates, shall have priority of payment in the same order as set forth in said section 104 under the provisions of this section in any dis- tribution, assignment, composition, or settlement herein provided for . Upon the confirmation of an extension proposal the court may ing wheM o epre oceo- dismiss the proce eding or retain ju risdicti on of the debtor a nd his confirmed. property during th e period of the ex tension i n order t o protect and preserve the estat e and enf orce the terms of the exten sion prop osal. "(k) The judge may, upon the application of the parties in inter- oaR ein within sta`S;mmonths, f est, filed at any time within six months after the composition or exten- u fraud at trfat . sion proposal has been confirmed, set the same aside and reinstate the case, if it shall be made to appear upon a trial that fraud was practiced in the procuring of such composition or extension, and that knowledge thereof has come to the petitioners since the confirmation thereof. App ointment of t rus- "(1) If (1) the debt or shall fail to c omply wit h any of the terms tee upo n defa ult of required of him for the protection of and indemnity against loss debtor. b y the estate ; or (2) the debtor has failed to make the required deposit in case of a composition ; or (3) the debtor's proposal has not been accepted by the creditors or (5) w ithout su fficient reason th e debtor defaults in any p ayment required to be made under the terms of an extension proposal when the court has retained jurisdiction of the debtor or his property, the court may appoint the trustee nominated by the creditors at the first meeting, and if t he credit ors shall have fa iled to s o nominat e, may appoint any other qualified person as trustee to liquidate the estate. Liquidation of estate. The cour t shall i n additio n adjudge the deb tor a ban krupt if satis- fied that he commenced or prolonged the proceeding for the purpose of delaying creditors and avoiding an adjudication in bankruptcy, or if the confirmation of his proposal has been denied. No order of person e w earner and liquidation or adjudication shall be entered in any proceeding under ce pted. this section instituted by or against a wage earner or a person engaged chiefly in farming or the tillage of the soil unless the wage earner o r a perso n engaged chiefly in farmi ng or the tillage of the soil consents.
 * or (4) confirmation has been denied ;