Page:United States Statutes at Large Volume 54 Part 1.djvu/703

 54 STAT.] 76TH CONG., 3D SESS.-CH. 438-JUNE 28, 1940 "At the hearing, or a continuance thereof, the judge may refer any matters to a special master for consideration, the taking of testi- mony, and a report upon special issues, and may allow reasonable compensation for the services performed by such special master, and the actual and necessary expenses incurred in connection with the proceeding, including compensation for services rendered and expenses incurred in obtaining the deposit of securities and the preparation of the plan, whether such work may have been done by the petitioner or by committees or other representatives of creditors, and may allow reasonable compensation for the attorneys or agents of any of the foregoing: Provided, however, That no fees, compensation, reim- bursement, or other allowances for attorneys, agents, committees, or other representatives of creditors shall be assessed against the peti- tioner or paid from any revenues, property, or funds of the petitioner except in the manner and in such sums, if any, as may be provided for in the plan of composition. An appeal may be taken from any order making such determination or award to the United States circuit court of appeals for the circuit in which the proceeding under this chapter is pending, independently of other appeals which may be taken in the proceeding, and such appeal shall be heard summarily. "On thirty days' notice by any creditor to petitioner, the judge, if he finds that the proceeding has not been prosecuted with reasonable diligence, or that it is unlikely that the plan will be accepted by said proportion of creditors, may dismiss the proceeding." SEC. 3. Section 83 (e) of chapter IX of such Act as amended, is amended to read as follows: "(e) Before concluding the hearing, the judge shall carefully examine all of the contracts, proposals, acceptances, deposit agree- ments, and all other papers relating to the plan, specifically for the purpose of ascertaining if the fiscal agent, attorney, or other person, firm, or corporation promoting the composition, or doing anything of such a nature, has been or is to be compensated, directly or indirectly, by both the petitioner and the creditors thereof, or any of such creditors-either by fee, commission, or other similar payment, or by transfer or exchange of bonds or other evidence of indebtedness whereby a profit could accrue-and shall take evidence under oath to make certain whether or not any such practice obtains or might obtain. "After such examination the judge shall make an adjudication of this issue, as a separate part of his interlocutory decree, and if it be found that any such practice be possible, he shall forthwith dismiss the proceeding and tax all of the costs against such fiscal agent, attorney, or other person, firm, or corporation promoting the com- position, or doing anything of such a nature, or against the petitioner, unless such plan be modified within the time to be allowed by the judge so as to eliminate the possibility of any such practice, in which event the judge may proceed to further consideration of the confirma- tion of the plan. If it be found that no such practice is possible, then the judge may proceed to further consideration of the confirmation of the plan. "At the conclusion of the hearing, the judge shall make written findings of fact and his conclusions of law thereon, and shall enter an interlocutory decree confirming the plan if satisfied that (1) it is fair, equitable, and for the best interests of the creditors and does not discriminate unfairly in favor of any creditor or class of creditors; (2) complies with the provisions of this chapter; (3) has been accepted and approved as required by the provisions of subdivision (d) of this section; (4) all amounts to be paid by the petitioner for services or expenses incident to the composition have been fully 669 Reference to special master. Compensation and expenses. Proviso. Assessment of fees, etc. Appeal from order. Dismissal of pro- ceeding. 50 Stat. 658 . 11U. S.C ., Spp. V, §403 (e). Examination of source of promoter's compensation. Adjudication; dis- missal of proceeding; taxing of costs. Condition. Findings. Basis for entry of deeee confirming plan.

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