Page:United States Statutes at Large Volume 52.djvu/886

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 575-JUNE 22, 1938 mature, procured, permitted, or suffered voluntarily or involuntarily the appointment of a receiver or trustee to take charge of his prop- erty; or (6) admitted in writing his inability to pay his debts and his willingness to be adjudged a bankrupt. "b. A petition may be filed against a person within four months after the commission of an act of bankruptcy. Such time with respect to the first, second, or fourth act of bankruptcy shall not expire until four months after the date when the transfer or assign- ment became so far perfected that no bona-fide purchaser from the debtor and no creditor could thereafter have acquired any rights in the property so transferred or assigned superior to the rights of the transferee or assignee therein. For the purposes of this section, it is sufficient if intent under the first act of bankruptcy or if intent or insolvency under the second act of bankruptcy exists either at the time when the transfer was made or at the time when it became perfected, as hereinabove provided. "c. It shall be a complete defense to any proceedings under the first act of bankruptcy to allege and prove that the party proceeded against was not insolvent as defined in this Act at the time of the filing of the petition against him. If solvency at such date is proved by the alleged bankrupt, the proceedings shall be dismissed. In such proceedings the burden of proving solvency shall be on the alleged bankrupt. "d. Whenever a person against whom a petition has been filed alleging the commission of the second, third, or fifth act of bank- ruptcy takes issue with and denies the allegation of his insolvency or his inability to pay his debts as they mature, he shall appear in court on the hearing, and prior thereto if ordered by the court, with his books, papers, and accounts, and submit to an examination and give testimony as to all matters tending to establish solvency or insolvency or ability or inability to pay his debts as they mature and, in case of his failure so to do, the burden of proving solvency or ability to pay his debts as they mature shall rest upon him. "SEC. 4. WHO MAY BECOME BANKRUPTS. -a. Any person, except a municipal, railroad, insurance, or banking corporation or a build- ing and loan association, shall be entitled to the benefits of this Act as a voluntary bankrupt. "b. Any natural person, except a wage earner or farmer, and any moneyed, business, or commercial corporation, except a build- ing and loan association, a municipal, railroad, insurance, or banking corporation, owing debts to the amount of $1,000 or over, may be adjudged an involuntary bankrupt upon default or an impartial trial and shall be subject to the provisions and entitled to the benefits of this Act. The bankruptcy of a corporation shall not release its officers, the members of its board of directors or trustees or of other similar controlling bodies, or its stockholders or members, as such, from any liability under the laws of a State or of the United States. The status of an alleged bankrupt as a wage earner or farmer shall be determined as of the time of the commission of the act of bankruptcy. "SEC. 5 . PARTNERS. -a. A partnership, including a limited part- nership containing one or more general partners, during the con- tinuation of the partnership business or after its dissolution and before the final settlement thereof, may be adjudged a bankrupt either separately or jointly with one or more or al of its general partners. "b. A petition may be filed by one or more or all of the general partners in the separate behalf of a partnership or jointly in behalf of a partnership and of the general partner or partners filing the 845 Petition against per- son committing act of bankruptcy. Proof of solvency. Denial of allegation of insolvency; hearing. Who may become bankrupts. Voluntary bank- ruptcy. Involuntary bank- ruptcy. Determination of status as wage earner or farmer. Partners. Petition, by whom filed.

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