§ 80 TITLE 1.
-BANKRUPTCY
trustee in each case hiftituted before filing the petition, except
the petition of a proli ed voluntary bankrupt which is ac-
colpainled by anl affidavit statriig that the petitioner is with-
out, nll can not obtain, the money with which to pay such
fees; (1) deliver to the refere's upon application all papers
which nay be referred to them, or, If tie offices of such
referees are not fit the same citles or towns as the offices of
such clerks, transmit such papers by mall, and in like manner
return papers which were recelveO front such referees after
they have beem used ; (4) and within ten days after each case
has been closed pay to the referee, if the case was referred,
the fee colleed for him, and to the irustee the fee collected
for himi at the time of filing the petition. (July 1, IS98, c.
541, § 51, 30 Stat. 558.)
80. Fees of clerks and marshals.-(a) Clerks shall respec-
tively charge and collect for their service to each estate, a
filing fee of $10, except when a fee is not required from a
voluntary bankrupt, which said fee shall be paid into tile
Treasury of the United States In tiie ianner provided by law.
(b) Marshals shall respectively charge the estate where an
adjudicat ion In hankruptcy is moade, except as hereih otherwise
provided, for the performance of their services in proceedings
III hankruptt y, the samte fees, and account for them in the same
way, Ins tney tire entitled to charge for the performance of tie
sane or sinflar ser%lees In other cases In accordance with laws
in force on July 1, 1818, or such its may be thereafter enacted,
fixing the conltiisation of marshals. (July 1, 189S, e. 541,
§ 52, 308t Stt. 551; Feb. 20, 1919, c. 49, § 1, 40 Stat. 1182; Feb.
11, 1921, c. 46, 41 Stlt. 1090.)
81. Duties of Attorney Gene al.-The Attorney General shall
annually lay before Congress statistical tables showing for the
whole country, and by States, the inunber of cases during the
year of voluntary and Involuntary bankruptcy; the amount of
the property of the estates; the dividends paid and the expenses
of aidministering such estate,; and such other like Information
as lie may deeni important. (July 1, 1898, c. 541, § 53, 80
Stat. 559.)
82. Statistics of bankruptcy proceedings.-Officers shall fur-
nisli In writing and transmit by mail such information as iN
within their knowledge, and as may be shown by the records
anl papers InI their possession, to the Attorney General, for
statistical purposes, within ten (lays fifter being requested by
him to do so. (July 1, 1898, c. 541, § 54, 30 Stat. 559.)
Chapter .- CtE)ITORS.
See.
91. Creditors' meetings.
112. Same; %oters lit.
9"3. Proof and allowance of claims.
94. Creditors; notices to.
05. lhnkruptcy petitions; filing and dismissal.
06. l'refered creditors.
Section 91. Creditors' meeting.-() The court shall cause
the first meeting of the creditors of a bankrupt to be held, not
less than tell or more than thirty days after the adjudication,
at tile county seat of the county in which the bankrupt has had
his principal place of business, resided, or ha!l his domicile;
or if that jlace wouhl be manifestly Inconvenient ns a place of
meeting for the parties in interest, or if the bankrupt Is one
who does not do business, reside, or have his domicile within
the United States, the court shall fix a place for the meeting
which is the most convenient foe parties In interest. If such
meeting should by any mischance not be held within such time,
the court shall fix the date, as soon as may be thereafter, when
it sh11ll he held.
(b) At the first meeting of creditors the judge or referee
shall preside, and, before proceeding with the other business,
mty allow or disallow the claims of creditors there presented,
and may publicly examine the bankrupt or cause him to be
examined at the instance of any creditor.
(c) The cre(litors shall at each meeting take such steps as
may be pertinent and necessary for the promotion of the best
interests of the estate and the enforcement of the provisions of
this title.
(d) A niecting of creditors, subsequent to the first one, may
be held at any tine and plice when til of the creditors wio
have secured the allowance of their chtlms sign a written con-
sent to hold a meeting at such time and place.
(e) The court shall call a meeting of creditors whenever
one-fourth or more In nubler of those who have in'oven their
claims shall file a written request to that effect; If such request
is siglied by a majority of such creditors, whih munher repre-
sents a majority In amount of such clahms, and contains a
request for such meeting to be held at a desigmted place, the
court shall call such meeting at such l)lscc within thirty days
after fltl date of the filing of the request.
(f) Whenever the affairs of tht estate are ready to le
closed a final nieetlng of creditor-i sliall be ordered. (July 1,
1898, c. 511, § 55, 30 Stat. 559.)
92. Same; voters at.-(a) Creditors shall pass upon matters
submitted to theni at their meetiugs by a majority voie ii
number and aniount of chliis of all creditors whose claios
have beeni allowed and are present, except its otherwise pro-
vided ill this title.
(b) Creditors holding clainis which are secured or have
)riority shall not, III respect to such claihs, be entitled to vote
at creditors' nectigs, nor shall such clainis be counted in coal-
puthig either the number of creditors or the anount of their
claims, unless the amounts of such claims exceed the values of
such securities or priorities, and then only for such excess.
(July 1, 1808, c. 511, § 56, 30 Stat. 560.)
93. Proof and allowance of claims.-(a) Proof of clains
shall consist of it statenment under oath, in writing, signed by a
creditor setting forth the claim, the consideration therefor, atld
whether any, and, if so, what, securities are leld therefor, and
whether any, and, If so what, paynents have beenmade thereon,
and that the suii claimed Is justly owing from the bankrupt to
the creditor.
(b) Whenever a claim is founded upon an instrument of writ-
lng, such Instrument, unless lost or destroyed, shall be filed with
the proof of clahn. If such instrument is lost or destroyed, it
statement of such fact and of the circumstances of such loss
or destruction shall be filed under oath with the claim. After
the claiui is allowed or disallowed, such instrument uay be
vithdrawmn by permission of the court, upon leaving a copy
thereof on file with the clain.
(c) Ciaitn,, after being proved may, for the purpose of allow-
ance, be filed iy the claimnts Iin the court where the piroceed-
lings are Initiig 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 obje2-
tion to their allowance shall lie made by parties In ittrest, or
their consideration be continued for cause by the court upoi
its own motion.
(e) Claims of secured creditors and those who have priority
may be allowed to enable such creditors to participate III tim
proceedings at creditors' meetings held prior to the deternilna-
tion of the value of their securities or priorities, but shall be
allowed for such sums only as to the courts seem to lie owing
over and above the value of their securlties or priorities.
(f) Objections to claims shall lie heard and determinmd as
soon as the convenience of the court and the best interests of
the estates and the claimants will perinit.
(g) The claims of creditors who have received preference.4,
voidable under section 90, subdivision (1)), of this title, or to
whom conveyances, transfers, assignllents, or hliCuibrances,
void or voidable under section 107, subdivision (e), of this title,
trave been made or given, shall not be allowed unless such
 'ITL l.=-BANKR UPTOY § 96
creditors shall surrender such preferences, conveyances, trans- 95. Bankruptcy petitions; filing and dlsmissal.-(a) Any
fers, assiglllnents, or imlnlbrances. qualified person may file a petition to be adjudged a voluntary
(I) The value of securities held by secured creditors shall bankrupt.
be determined by converting the slime into money according to (b) Three or more creditors who lave provhie claims
tie ternis of the agreenlent pursuant to which such securities against any person which amount in the aggregate, in excess
were delivered to shll creditors or by sucl creditors arid the of the value of securities held by them, if any, to $500 or over;
trustee, by agreement, arbitration, compromise, or litigaton, or if all of the creditors of such lerson ire less than twelve it
as the court may direct, and the amjount of such value shall number, then one of such creditors whose clai equals such
be credited upon such claims, and it dividend shall be paid only amount may file a petition to have hhin adjudged a bankrupt.
Oilthe uapal balance. (c) Petitions shall be flied in duplicate, one copy for the
(1) Whenever a creditor whose claim against a bankrupt clerk and one for service on the bankrupt.
estte is secured by the individual undertaklng of any person
(d) If It be averred in tie petition that the creditors of the
fails to prove such claim, such person may do so in the creditor's bankrupt are less than twelve in number, and le';s than three
naine, and if liedischarge such undertaking In whole or in part creditors have joined as pettitionvrs therein, and the answer
lie shall be subrogated to til, extent to the rights of the avers the existence of a larger number of creditors, there shall
creditor. be filed with the answer a lst under oath of till the creditors,
with their addresses, and thereupon the court shall cause all
(j) Debts owing to the United States, a State, a county, a dis-
such creditors to be notified of the pendeney of such petition
trlet, or a inulelpllty as a penalty or forfeiture shall not be
and shall delay the hearing upon such petition for a reasonable
allowed, except for the amount of the pecuniary loss sustained time, to the end that parties In interest shall have an oppor-
by tie act, transaction, or proceeding out of which tie penalty tunity to be heard; if upon such hearing it shall appear that
or forfeiture arose, with reasonable and actual costs occasioned
a sufficient number have joined in such petition, or if prior to
thereby and such interest a1smay have acerued thereon accord-
or during such hearing a sulilclent number shall join therein,
iIg to law.
tle case may be proceeded with, but otherwise it shall be
(k) Clains which have been allowed may be reconsidered for dismissed.
cause an1l reallowed or rejected il whole or Ill part, according (e) In computing the number of creditors of a bankrupt
to the equities of the ease, before but not after the estate has for tIle purpose of determining how miany creditors must join
been closed. in the petition, such creditors as were employed by hin at
(1) Whenever a claim shall have been reconsidered and re- the time of tie filing of the petition or are related to hn by
jected, il whole or in part, upon which a dividend has been consanguinity or affinity within tie third degree, as determined
paid, the trustee nmy recover from the creditor the amount of by the comlion law, and have not joined in the Ietitioll, shall
the dividend received upon the claim If rejected in whole, or the not be counted.
prolportional part thereof if rejected only Il llrt. (f) Creditors other than original petitioners may at any
(mIl) Tile claha of any estate which is being administered in time enter their appearance and join in the petition, or file
bankruptcy against any like estate may lie proved by the aln answer and be heard in opposition to the plrayer of the
trustee nnd allowed by the court i tile samn,o anner antd petition.
upon like terms as the claims of other creditors. (g) A voluntary or involuntary petition shall not ie ils-
(n) Claims shall not be proved against a bankrupt estate missed by the petitioner or petitioners or for want of proseci-
subsequent to one year after the adjudication; or if they are tion or by consent of parties until after notice to the creditors,
liqulated by lIltigatiom and the fild judgment therein is reu- and to tlat end the court slali, before entertaining an appli-
dered within thirty days before or after the expiration of snell cation for dismissal, require the bankrupt to ile it list, uuder
ti1e, then within sixty days after the rendition of such jlldg- oath, of all 1it.; creditors, with their addresses, and shall cause
meLt. The right of Infants and insane persons w:.ioit gutlardl- notice to be sent to all such creditors of tle pndeney of such
aln15, without notice of tile procecdings, may continue six months application, and shall lelay the hearing thereon for it reaso-
longer. (July 1, 189, c. 541, § 57, 30 Stat. 560; Feb. 5, 1903, able thne to allow all creditors and parties in interest opplr-
c. 187, § 12, 32 Stat, 7199.) tunity to be heard. (July 1, 1898, c. 511, § 59, 30 Slat. 5()1;
94. Creditors; notices to.-(a) Creditors Shall hlave at leastt Jane 25, 1910, c. 412, § 10, 36 Stat. 811.)
tell days' notice by mail, to their respective addresses its they 96. Preferred creditors.-(a) A person shall be deellied to
appear il the list of creditors of the bankrupt, or as after- - have given a preference if, being insolvent, lie has, within four
wards filed with the papers il the case by the creditors, un-S onitlis before the filing of tile petitlon, or after the filing of
le.ss they waive notice in writing, of (1) 1ll examinations o the petitlon and before tie adjudiclation, proclred or sliffered
the lakrupt; (2) all hearings upon applications for the con. - a judgnent to be entered against himself In favor of any
firilation of compositilons; (3) all imeetings of creditors; (4) person, or inade a transfer of tiny of lls property, and tie
ll proposed sales of property; (5) the declaration and timci effect of tile enforenlent of such judgment or tlransfer wiIl he
of paymlent of dividen.ds; (0) tie filing of the final accountEs to enable tiny one of 1is creditors to obtain a greater per-
of the trustee, and the thne when and the place where they, ceitago of iis debt than ally other of such creditors of tile
will be examined and passed upon; (7) the proposed cojla sallie class. Where tile preferlence consists in a transfer, such
promise of any controversy; (8) the proposed dismissal of th( period of four months slall not expire until four mnils aftr
lwoceedings, and (9) there slall be thirty days' notice of allt tlhe date of the recording or registering of the tranlsfer, if by
appilications for the discbarge of bankrupts. law such recording or registering !s required.
(b) Notice to creditors of the first meeting shall be pmb - (b) If a bankrupt shall ]lave procured or suffered a J1lig-
1lslhed at least once and may be published such number o fment to be entered against him in favor of any person 3r ]lave
additional tiles as the court may direct; the last publicatioz nlade a transfer of any of his property, and if, lit tie Hale of
Shall be .ttleast one week prior to tie date fixed for the meet - the transfer, or of the entry of the judgnent, or of the reord-
Ing. Other notices nmy be iublished as the court shall direct lng or registering of the transfer if by law recording or regis-
(e) All notices shall be g.ven by the referee, unles.4 other - tering thereof is required, and being within four months before
wise ordered by the judge. (July 1, 1898, e. 541, § 58, 8( the filingof tl petition in bankruptcy or after the filing thereof
Stat. 501; June 25, 1910, e. 412, § 91h, 80 Otat. 841.) and before the adjudication, the bankrupt be ilsolvent and 1110
§ .101 TITLE 1l.--B,ANKRUPTOY
judgment or transfer then operate an a preference, and the
person receiving it or to be benefited thereby, or his agent
acting therein, shall then have 'reasonable cause to believe that
the enforcement of such judgment or transfer would effect a
preference, it shall be voidable by the trustee and he may
recover the property or its value from such person. And for
the purpose of such recovery any court of bankruptcy, as here-
Inlbefore defined, and any State court which would have had
jurisdiction If bankruptcy had not intervened, shall have con-
current jurisdiction.
(e) If a creditor has been preferred, and afterwards in good
faith gives the debtor further credit without security of any
kind for property which becomrs a part of the debtor's estates,
the amount of such new credlt remaining unpaid at the time
of the adjudication In bankruptcy may be set off against the
amount which would otherwise be recoverable from him.
(d) If a debtor shall, directly or Indirectly, in contemplation
of the filing of a petition by or against him, pay money or
transfer property to an attorney and c6ungelor at law, solicitor
In equity, or proctor in admiralty for services to be rendered,
the transaction shall be reexamined by the court on petition of
the trustee or any creditor and shall only be held valid to the
extent "of a reasonable amount to be determined by the court,
and tle excess may be recovered by the trustee for the benefit
of the estate. (July 1, 1898, c. 541, § 60, 30 Stat. 562; Feb. 5,
1903, c. 487, § 13, 82 Stat. 79; June 25, 1910, c. 412, § 11, 36
Stat. 842.)
Chapter 7.-ESTATES.
101. Depositories for money.
102. Expenses of administration.
103. Debts provable against.
104. Debts which have priority.
105. Declaration and payment of dividends.
106. Unclaimed dividends.
107. Liens, conveyances, transfers, and assignments; validity of.
108. Set-offs and counterclaims.
109. Property; seizure to avoid deterioration.
110. Same; Utlo.
111. Records; duty of clerks to keep; inspection.
112. Restriction of compensation of referees, receivers, and trustees.
Section 101. Depositories for money.-Courts of bankruptcy
shall designate, by order, banking institutions as depositories
for the money of bankrupt estates, as convenient as may be
to the residences of trustees, and shall require bonds to the
United States, subject to their approval, to be given by such
banking Institutions, and may from time to time as occasion
may require, by like order Increase the number of depositories
or the amount of any bond or change such depositories.
(July 1, 1898, e. 541, f 01, 30 Stat. 562.)
102. Expenses of administration.-The actual and necessary
expenses incmirred by officers in the administration of estates
shall, except where other provisions are made for their pay-
meant, be reported in detail, under oath, and examined and
approved or disapproved by the court. If approved, they shall
be paid or allowed out of the estates in which they were
incurred. (July 1, 1808, c. 541, § 62, 30 Stat. 562.)
103. Debts provable against.-(a) Debts of the bankrupt
may be proved and allowed against his estate which are (1) a
fixed liability, as evidenced by a judgment or an instrument
in writing, absolutely owing at the time of the filing of the
petition against him, whether then payable or not, with any
interest thereon N1hich would have been recoverable at that
date or with a rebate of interest upon such as were not then
payable and mid not bear Interest; (2) due as costs taxable
against an Involuntary bankrupt who was at the time of the
filing of the petition against him plaintiff In a cause .of action
which would pass to the trustee and which the trustee declines
to prosecute after notice; (3) founded upon a claim for taxa-
ble costs incurred in good faith by a creditor before the filing
of a petition in an action to recover a provable debt; (4) founded
upon an open account, or upon a contract express or implied;
and (5) founded upon provable debts reduced to judgments
after the filing of the petition and before the consideration of
the bankrupt's application for a discharge, less costs incurred
and interest accrued after the filing of the petition and up to
the time of the entry of such judgments.
(b) Unliquidated claims against the bankrupt may, pur-
suant to application to the court, be liquidated in such manner
as it shall direct, and may thereafter be proved and allowed
against the estate. (July 1, 1898, c. 541, § 63, 80 Stat. 562.)
104. Debts which have priority.-(a) Time court shall order
the trustee to pay all taxes legally duo and owing by the
bankrupt to the United States, State, county, district, or
municipality in advance of the payment of dividends to credi-
tors, and upon filing the receipts of the proper public oticers
for such payment lie shall be credited with the amount thereof,
and in case any question arises as to the amount or legality
of any such tax the same shall be heard and determined by
the court.
(b) The debts to have priority, except us herein provided,
and to be paid in full out of bankrupt estates, and the order
of payment shall be (1) the actual and necessary cost of pre-,
serving the estate subsequent to filing the petition; (2) the
filing fees paid by creditors in involuntaiy cases, and, where
property of the bankrupt, transferred or concealed by him
either before or after the filing of the petition, shall have been
recovered for the benefit of the estate of the bankrupt by the
efforts and at the expense of one or more creditors, the reason-
able expenses of such recovery; (3) the cost of administration,
including the fees and mileage payable to witnesses as on July
1, 1898, or thereafter provided by the laws of the Gnited States,
and one reasonable attorney's fee, for the professional services
actually rendered, irrespective of the number of attorneys em-
ployed, to the petitioning creditors in involuntary cases, t0 the
bankrupt in involuntary cases while performing the duties
herein prescribed, and to the bankrupt in voluntary cases, as
the court may allow; (4) wages duo to workmen, clerks,
traveling or city salesmen, or servants which have been earned
within three months before the date of the commencement of
proceedings, not to exceed $300 to each claimant; and (5) debts
owing to any person who by the laws of the States or the
United States is entitled to priority.
(c) In the event of the confirmation of a composition being
set aside, or a discharge revoked, the property acquired by
the bankrupt in addition to his estate at the time the composi-
tion was confirmed or the adjudication was made shall be ap-
plied to the payment In full of the claims of creditors for
property sold to him on credit, in good faith, while such com-
position or discharge was in force, and the residue, If any,
shall be applied to the payment of the debts which were owing
at the time of the adjudication. (July 1, 1898, c. 541, § 04,
30 Stat. 503; Feb. 5, 1903, c. 487, § 14, 32 Stat. 800; June 15,
1906, c. 3333, 34 Stat. 207.)
105. Declaration and payment of dividends.-(a) Dhiidends
of an equal per centum shall be declared and paid on all al-
lowed claims, except such as have priority or are secured.
(b) The first dividend shall be declared within thirty days
after the adjudication, if the money of the estate in excess of
the amount necessary to pay the debts which have priority and
such claims as have not been, but probably will be, allowed
equals 5 per centuma or more of such allowed claims. Divi-
dends subsequent to the first shall be declared upon like terms
as the first and as often as the amount shall equal 10 per,
centum or more and upon closing the estate. Dividends may I
be declared oftener and in smaller proportions If the judge,