Page:United States Statutes at Large Volume 76A.djvu/369

–273– -273§ 4953. Avoidance only where enforcement of creditor's right obstructed A creditor can avoid the act or obligation of his debtor for fraud only where the fraud obstructs the enforcement, by legal process, of his right to take the property affected by the transfer or obligation. Subchapter III—Assignments for Benefit of Creditors § 4971. When debtor may execute assignment An insolvent debtor may in good faith execute an assignment of property in trust for the satisfaction of his creditors, in conformity with this subchapter; subject, however, to the provisions of this Code relative to trusts and fraudulent transfers, and to the restrictions imposed by law upon assignments by special partnerships, or by other specific classes or persons. § 4972. Form of assignment The assignment shall contain a list of the names of the creditors of the assignor, and their places of residence and amounts of their respective demands, and the amounts and nature of any security therefor; and shall, subject to the other provisions of this subchapter, be made to the marshal for the Canal Zone. § 4973. Custody of property; creditors* meeting; election of assignee The marshal shall forthwith take possession of all the property assigned to him, and keep it till delivered by him, as provided in this subchapter. When the assignment has been made, the marshal shall immediately, by mail, notify the creditors named in the assignment, at their places of residence as given therein, to meet at his office on a day and hour to be appointed by him, not less than 8 or more than 10 days from the date of the delivery of the assignment to him, for the purpose of electing one or more assignees, as they may determine, in the place and stead of the marshal in the premises. He shall also publish a notice of the meeting, and the purpose thereof, at least once before the meeting, in a newspaper of general circulation in the Canal Zone. The notice to be mailed shall also contain a statement of the amount of the demand of the creditor, and the amount and nature of any security therefor, as set forth in the assignment. If a creditor does not find the amount of his claim to be correctly so stated, he may file with the marslial, at or before the meeting, a statement, under oath, of his demand, and his statement shall, for the purpose of voting, be accepted by the marshal as correct. When such a statement is not filed, the statement of amount as set forth in the assignment shall be accepted by the marshal as correct. A creditor having a mortgage or pledge of property of the debtor, or lien thereon, for securing the payment of a debt owing to him from the debtor, may not be allowed to vote any part of his claim at the meeting of creditors, unless he has first conveyed, released, or delivered up his security to the marshal for the benefit of all creditors of the assignor. At the meeting the marshal shall preside, and a majority in amount of demands present or represented by proxy shall control all questions and decisions. The creditors may adjourn the meeting from time to time, and may vote on all questions either in person or by proxy signed and acknowledged before any officer authorized to take acknowledgments, and filed with the marshal. At the meeting, or any adjournment thereof, the creditors may elect one or more assignees from their own number, in the place and

B558 O - 62 - 24

�