Page:United States Statutes at Large Volume 76A.djvu/422

–326– -326crcditor, unless objection to the undertaking is made as herein provided, and if objection is made to the undertaking filed and served, then the undertaking shall become effective for such purposes when an undertaking is given as herein provided. § 569. Attachments and executions on mortgaged personal property (a) Except as provided in subsection (b) of this section, before mortgaged personal property is taken under attachment or execution issued at the suit of a creditor of the mortgagor, the officer shall pay or tender to the mortgagee the amount of the mortgage debt and interest or deposit the amount thereof with the registrar of property, payable to the order of the mortgagee. (b) When an attachment or execution creditor presents to the officer a verified statement that the mortgage is void or invalid for reasons therein specified and delivers to the officer a good and sufficient indemnity bond in double the amount of the mortgage debt or double the value of the mortgaged property, as the officer may determine and require, the officer shall take the property, and, in the case of an execution, sell it in the manner provided by law. The bond shall be made to both the officer and the mortgagee and shall indemnify them and each of them for the taking of the property against loss, liability, damages, costs, and counsel fees. (c) When the property is taken after payment or tender of deposit as provided for m subsection (a) of this section and is sold under process the officer shall apply the proceeds of the sale as follows: (1) to the repayment of the sum paid to the mortgagee, with interest from the date of the payment; and (2) the balance, if any, in like manner as the proceeds of sales under execution are applied in other cases. (d) When the property is taken after presentation to the officer of the verified statement and bond mentioned in subsection (b) of this section and is sold under process the officer shall apply the proceeds of the sale as follows: (1) to the satisfaction of the amount specified in the process including interest and costs; and (2) the balance, if any, in like manner as the proceeds of sales under execution are applied in other cases. Subchapter III—Proceedings Supplemental to Execution § 601. Examination of judgment debtor When an execution against property of the judgment debtor, or of any one of several debtors in the same judgment, issued to the marshal, is returned imsatisfied in whole or in part, the judgment creditor, at any time after the return is made, is entitled to an order from the judge of the court, requiring the judgment debtor to appear and answer concerning his property before the judge, or a referee appointed by him, at a time and place specified in the order. § 602. Order for judgment debtor to appear; arrest; bail (a) After the issuing of an execution against property, and upon proof, by affidavit of a party or otherwise, to the satisfaction of the judge of the court that a judgment debtor has property which he unjustly refuses to apply toward the satisfaction of the judgment, the judge may, by an order, require the judgment debtor to appear at a specified time and place before the judge, or a referee appointed by him, to answer concerning the same; and such proceedings may thereupon be had for the application of the property of the judgment debtor toward the satisfaction of the judgment as are provided upon the return of an execution.

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