Page:United States Statutes at Large Volume 52.djvu/907

 PUBLIC LAWS-CH. 575-JUNE 22, 1938 Claims of $50 orless. Proof and allowance of claims. Production of instrument on which claim is founded. Filing of proofs of claims. Allowance. Proviso. Unliquidated or contingent claims. Secured, etc., credi- tors. Objections to claims, determination of. Vo id or voidable preferences, etc. Determination of value of securities held by secured credi- tors. Court supervision, etc. Claim secured by individual undertak- lng of another. "c. Claims of $50 or less shall not be counted in computing the number of creditors voting or present at creditors' meetings, but shall be counted in computing the amount. "SEC. 57. PROOF AND ALLOWANCE OF CLAMs.-a. A proof of claim shall consist of a statement under oath, in writing and signed by a creditor, setting forth the claim; the consideration therefor; whether any and, if so, what securities are held therefor; and whether any and, if so, what payments have been made thereon; and that the claim is justly owing from the bankrupt to the creditor. "b. Whenever a claim is founded upon an instrument of writing, such instrument, unless lost or destroyed, shall be filed with the proof of claim. If such instrument is lost or destroyed, a statement of such fact and of the circumstances of such loss or destruction shall be filed under oath with the claim. After the claim is allowed or disallowed, such instrument may be withdrawn by permission of the court upon leaving a copy thereof on file with the claim. "c. Proofs of claim may, for the purpose of allowance, be filed by the claimants in the court of bankruptcy where the proceedings are pending or before the referee if the case has been referred. "d. Claims which have been duly proved shall be allowed upon receipt by or upon presentation to the court, unless objection to their allowance shall be made by parties in interest or unless their con- sideration be continued for cause by the court upon its own motion: Provided, however, That an unliquidated or contingent claim shall not be allowed unless liquidated or the amount thereof estimated in the manner and within the time directed by the court; and such claim shall not be allowed if the court shall determine that it is not capable of liquidation or of reasonable estimation or that such liqui- dation or estimation would unduly delay the administration of the estate or any proceeding under this Act. "e. Claims of secured creditors and those who have priority may be temporarily allowed to enable such creditors to participate in the proceedings at creditors' meetings held prior to the determination of the value of their securities or priorities, but shall be thus tempo- rarily allowed for such sums only as to the courts seem to be owing over and above the value of their securities or priorities. "f. Objections to claims shall be heard and determined as soon as the convenience of the court and the best interests of the estates and the claimants will permit. "g. The claims of creditors who have received or acquired pref- erences, liens, conveyances, transfers, assignments or encumbrances, void or voidable under this Act, shall not be allowed unless such creditors shall surrender such preferences, liens, conveyances, transfers, assignments, or encumbrances. "h. The value of securities held by secured creditors shall be determined by converting the same into money according to the terms of the agreement pursuant to which such securities were delivered to such creditors, or by such creditors and the trustee by agreement, arbitration, compromise or litigation, as the court may direct, and the amount of such value shall be credited upon such claims, and a dividend shall be paid only on the unpaid balance. Such determination shall be under the supervision and control of the court. "i. Whenever a creditor whose claim against a bankrupt estate is secured by the individual undertaking of any person fails to prove and file such claim, such person may do so in the creditor's name and, if he discharge such undertaking in whole or in part, he shall be subrogated to that extent to the rights of the creditor. [52 STAT.

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