Page:United States Statutes at Large Volume 49 Part 1.djvu/989

 944 74TH CONGRESS. SESS. I. CH. 792. AUGUST 28, 1935. Stay of proceedings ... (2) When the conditions set forth in this section have been com- agai nst debt or. plied wit h, the cou rt shall s tay all ju dicial or official p roceedings in any court, or under the direction of any official, against the debtor or Rental payments . any of his property, for a period of three years. During such three years the debtor shall be permitted to retain possession of all or any part of his property, in the custody and under the supervision and control of the court, provided he pays a reasonable rental semian- nually for that part of the property of which he retains possession. T ime of mak ing . The first payment of such rental shall be made within one year of the date of the order staying proceedings, the amount and kind of such rental to be the usual customary rental in the community where the property is located, based upon the rental value, net income, and Manner of payment; earning capacity of the property. Such rental shall be paid into dis trib ution. court, to be used, first, for payment of taxes and upkeep of the prop- erty, and the remainder to be distributed among the secured and unsecured creditors, and applied on their claims, as their interests p Sale of property. pt may a ppea r. The court, in its di scretion, if it deem s it neces sary to protect the creditors from loss by the estate, and/or to conserve the security, may order sold any unexempt perishable property of the debto r, or any unexe mpt p erson al pr opert y not reas onabl y nec essar y for the farming operations of the debtor, such sale to be had at Paymen ts on prin ci- private or public sale, and may, in addition to the rental require pal' payments on the principal due and owing by the , debtor to the secured or unsecured creditors, as their interests may appear, in accordance with the provisions of this Act, and may require such payments to be made quarterly, semiannually, or annually, not in- consistent with the protection of the rights of the creditors and the debtor's ability to pay, with a view to his financial rehabilitation. Pay ment of ap- "(3) At the end of three years, or prior thereto, the debto r may praised value' pay int o court the amount of the appraisal of the property of which he retains possession, including the amount of encumbrances on his exemptions, up to the amount of the appraisal, less th e amount paid Provi sos » on principal : Provided, That upon request of any secured or unse- Reappraisals. cured creditor, or upon request of the debtor, the court shall cause a reappraisal of the debtor's property, or in its discretion set a date for hea ring, and after such hearing, fix the value of the property, Paym ent of amount in accordance with the evidence submitted, and the debtor shall then determined by reap- praisal . pay the value so arrived at into court, less payments made on the principalfor distribution to all secued and unsecured creditors, as thei r interests may appear, and thereupon the court shall, by an order, turn over full possession and title of said property, free and sale of pro perty at clear of encumbrances to the debtor : Provided, That upon request in public suct ion upon request of secured cred- writing by any secured creditor or creditors, the court shall order itor. the property upon which such secured creditors have a lien to be sold Rede mpti on. at public auction. The debtor shall have ninety days to redeem any propert y sold at such sale, by paying the amount for which any such property was sold, together with 5 per centum per annum interest, into court, and he may apply for his discharge, as provided for by Limitation. this Act. If, however, the debtor at any time fails to comply with the provisions of this section, or with any orders of the court made p ursua nt to this sect ion, or is unab le to refi nance hims elf w ithin three years, the court may order the appointment of a trustee, and order t he property sold or otherwise disposed of as provided for in this Act.