Page:United States Statutes at Large Volume 47 Part 1.djvu/1496

 1472 72d C ONGRESS. SESS. II. CH. 204. MA RCH 3, 1933. Application for con- † g An application for the confirmation of a composition or firma tion of comp osi- tion or extension. extension proposal may be filed in the court of bankruptcy after when may be filed . but not before (1) it has been accepted in writing by a majority in number of all creditors whose claims have been allowed, includ- ing secured creditors whose claims are affected, which number shall represent a majority in amount of such claims, and (2) the money or security necessary to pay all debts which have priority unless waived, and in case of a composition, the consideration to be paid by the farmer to his creditors has been deposited in such place as shall be designated by and subject to the order of the court. Date and place of "(h) A date and plac e, with referenc e to the conveni ence of the he ari ng parties in interest, shall be fixed for a hearing upon each applica- tion for the confirmation of the composition or extension proposal and up on such objectio ns as ma y be mad e to its confirm ation . Confirmation of pro- G6 (i) The court shall confirm the proposal if satisfied that (1) it pOSAI . includes an equitable and f easible method * of liquidation f or secured creditors and of financial rehabilitation for the farmer ; (2) it is for the best interests of all creditors ; and (3) the offer and its accept- ance are in good faith, and have not been made or procured except as herein provided, or by any means, promises, or acts herein for- te te nsi on, ati oir or rex- bidden . In applications for extensions the court shall require proof from each creditor filing a claim that such claim is free from usury as defined by the laws of the place where the debt is contracted. Terms. 66 (j) The t erms of a co mpos itio n or ext ensi on p ropo sal may extend the time of payment of either secured or unsecured debts, or both, 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 undertakings by the farm er du ring the period of the extension including provisions for payments on account, and may provide for supervisory or other control by the conciliation commissioner over the farmer's affairs during such period, and for the termination of such period of supervision or con- Proa iso ' trol under conditions specified : Provided, That the provisions of this Exemptions not af- fected. section shall not affect the allowances and exemptions to debtors vl.3,p. za5. as are provided for bankrupts under title 11, chapter 3, section 24, of the United States Code, and su ch allowances and exemptions shall be set aside for the use of the debtor in the manner provided for ban krupts. Effect of confirma- "(k) Upon its confirmation a composition or extension proposal tton. shall be bi nding upon the f armer and h is se cured and u nsecu red Proviso . creditors affected thereby : Provided, That such composition or exten- itorsen of secured cred „ sion s hall not r educe the a mount of nor impair the lien of any secured creditor, but shall affect only the time and method of its liquidation . Distribution of con- "(1) Upon the confirmation of a composition the consideration sid era ti on, confirms. tion ofcom posi tion. shall be distributed under the supervision of the conciliation com- Pro ais o r missioner as the court shall direct, and the case dismissed : Provided, Order of payments, That the debts having priority of payment under title 11, chapter debts having priority. U.S. C.,p. 251. 7, section 104, of the United States Code, for bankrupt estates, shall have priority of payment in the same order as set forth in said section 104 unde r the provisions of this section in any distribut ion, assignment, composition or settlement herein provided for. Upon Dismissal of p roceed- the confirmation of an extension proposal the court may dismiss 1ng , wh en extension con fir med . the proceeding or retain jurisdiction of the farmer and his prop- erty during the period of the extension in order to protect and preserve the estate and enforce through the conciliation commis- Fieinststement of sioner t he terms of the extensio n propos al. The court may, after e, for cause shown; hearing and for good cause shown, at any time during the period when. covered by an extension proposal that has been confirmed by the