Page:United States Statutes at Large Volume 52.djvu/919

 PUBLIC LAWS-CH. 575-JUNE 22, 1938 Within four months prior to filing petition to effect preference to third party. Post, pp. 883, 905, 916, 930. Remedies of trustee for avoidance cumula- tive. Proviso. Limitation. Partnership prop- erty transfers and obligationsincurred within one year prior to filing petition. When transfer deemed to have been made. Purchasers, etc., for fair value. Provio. Innocent transfers at less than fair value. Voidable transfers. Ante, p. 869. Recovery or avoid- ance, jurisdiction of courts. 8et-offS and counter- claims. Ante, p. 868. "(3) Every transfer made and every obligation incurred by a debtor within four months prior to the filing of a petition in bank- ruptcy or of an original petition under chapter X, XI, XII, or XIII of this Act by or against him is fraudulent, as to then existing and future creditors, if made or incurred with intent to use the considera- tion, obtained for the transfer or obligation, to effect a preference to a third person voidable under section 60 of this Act. The remedies of the trustee for the avoidance of such transfer or obligation and of such preference shall be cumulative: Provided, however, That the trustee shall be entitled to only one satisfaction with respect thereto. "(4) Every transfer of partnership property and every partnership obligation incurred within one year prior to the filing of a petition in bankruptcy or of an original petition under chapter XI or XII of this Act by or against the partnership, when the partnership is insolvent or will be thereby rendered insolvent, is fraudulent as to partnership creditors existing at the time of such transfer or obliga- tion, without regard to actual intent if made or incurred (a) to a partner, whether with or without a promise by him to pay partner- ship debts, or (b) to a person not a partner without fair consideration to the partnership as distinguished from consideration to the indi- vidual partners. "(5) For the purposes of this subdivision d, a transfer shall be deemed to have been made at the time when it became so far per- fected that no bona-fide purchaser from the debtor and no creditor could thereafter have acquired any rights in the property so trans- ferred superior to the rights of the transferee therein, but, if such transfer is not so perfected prior to the filing of the petition in bank- ruptcy or of the original petition under chapter XI or XII of this Act, it shall be deemed to have been made immediately before the filing of such petition. "(6) A transfer made or an obligation incurred by a debtor adjudged a bankrupt under this Act, which is fraudulent under this subdivision d against creditors of such debtor having claims provable under this Act, shall be null and void against the trustee, except as to a bona-fide purchaser, lienor, or obligee for a present fair equiva- lent value: Provided, however, That such purchaser, lienor, or obligee, who without actual fraudulent intent has given a considera- tion less than fair, as defined in this subdivision d, for such transfer, lien, or obligation, may retain the property, lien, or obligation as security for repayment. "(7) Nothing contained in this subdivision d shall be construed to validate a transfer which is voidable under section 60 of this Act. "e. For the purpose of any recovery or avoidance under this section, where plenary proceedings are necessary, any State court which would have had jurisdiction if bankruptcy had not intervened and any court of bankruptcy shall have concurrent jurisdiction. "SEC. 68. SET-OrFs AND COUNTERCLAIMS. - a. In all cases of mutual debts or mutual credits between the estate of a bankrupt and a creditor the account shall be stated and one debt shall be set off against the other, and the balance only shall be allowed or paid. "b. A set-off or counterclaim shall not be allowed in favor of any debtor of the bankrupt which (1) is not provable against the estate and allowable under subdivision g of section 57 of this Act; or (2) was purchased by or transferred to him after the filing of the peti- tion or within four months before such filing, with a view to such use and with knowledge or notice that such bankrupt was insolvent or had committed an act of bankruptcy. 878 [52 STAT.

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