or salary, whether the employment in respect of which the same may be payable be by the hour, day, week, month, year or other period of time. R.S.M. c. 8, s. 28; 9 Ed. 7, c. 1,

s. 1.

to value

29. Every creditor in his proof of claim shall state wheth- Creditors er he holds any security for his claim or any part thereof; securities. and if such security is on the estate of the debtor, or on the estate of a third party for whom such debtor is only secondarily liable, he shall put a specified value thereon; and the assignee, under the authority of the creditors, may either consent to the right of the creditor to rank for the claim after deducting such valuation, or he may require from the creditor an assignment of the security at an advance of ten per cent, upon the specified value to be paid out of the estate; and in such case the difference between the value at which the security is retained and the amount of the gross claim of the creditor shall be the amount for which he shall rank and vote in respect of the estate. R.S.M. c. 8, s. 29.

re-value in

30. If a creditor holds a claim based upon negotiable Right to instruments upon which the debtor is only indirectly or certain cases. secondarily liable, and which is not mature or exigible, such creditor shall be considered to hold security within the meaning of the last preceding section, and shall put a value on the liability of the party primarily liable thereon as being his security for the payment thereof; but after the maturity of such liability and its non-payment he shall be entitled to amend and re-value his claim. R.S.M. c. 8, s. 30.

tor holding

to value

same.

31. If a person claiming to be entitled to rank on the When crediestate assigned holds security for his claim or any part there- security fails of, of such a nature that he is required by this Act to value the same, and he fails to value such security, a judge of the Court of King's Bench may, upon summary application by the assignee or by any other person interested in the debtor's estate, of which application three days' notice shall be given to such claimant, order that, unless a specified value be placed on such security and notified in writing to the assignee within a time to be limited by the order, such claimant shall, in respect of the claim or the part thereof for which the security is held, in case the security is held for part only of the claim, be wholly barred of any right to share in the proceeds of such estate; and if a specified value is not placed on such security, and notified in writing to the assignee according to the exigency of the said order, or within such further time as the said judge may by subsequent order allow, the said claim or the said part, as the case may be, shall be wholly barred as against such estate, but without prejudice to the liability of the debtor therefor. R.S.M. c. 8, s. 31.

Contestation of claim,

Service of process on solicitors.

Procedure

where

assignee is

proof of claim and debtor desires to

32. At any time after the assignee receives from any person claiming to be entitled to rank on the estate proof of his claim, notice of contestation of the claim may be served by the assignee upon the claimant. Within thirty days after the receipt of the notice, or such further time as a judge of the Court of King's Bench may on application allow, an action shall be brought by the claimant against the assignee to establish the claim, and if such action be not brought, or if the statement of claim or summons be not served, within the time aforesaid, the claim to rank on the estate shall be forever barred.

(2) The notice by the assignee shall contain the name and place of business of one of the solicitors of the Court of King's Bench for Manitoba, upon whom service of the statement of claim or summons may be made; and service upon such solicitor shall be deemed sufficient service of the statement of claim or summons. R.S.M. c. 8, s. 32.

33. If the assignee is satisfied with the proof adduced in support of a claim, but the debtor disputes the same, such satisfied with debtor shall do so by notice in writing to the assignee, stating the grounds upon which he disputes the claim; and such dispute same. notice shall be given within ten days of such debtor being notified in writing by the assignee that he is satisfied with the proof adduced as aforesaid, and not afterwards unless by special leave of a judge of the Court of King's Bench.

(2) If upon receiving such notice of dispute the assignee does not deem it proper to require the claimant to bring an action to establish his claim, he shall notify the debtor in writing of this fact, and the debtor may thereupon, and within ten days of his receiving such notice, apply to the said judge for an order requiring the assignee to serve a notice of contestation. The judge shall only make such order if, after notice to the assignee, the judge is of opinion that there are good grounds for contesting the claim. the debtor does not make an application as aforesaid, the decision of the assignee shall as against him be final and conclusive so far as regards the distribution of the assigned

estate.

If

(3) If upon the application the claimant consents in writing, the judge may, in a summary manner, decide the question of the validity of the claim.

(4) If an action is brought by the claimant against the assignee, the debtor may intervene at the trial, either personally or by counsel, for the purpose of calling and examining or cross-examining witnesses. R.S.M. c. 8, s. 33.

DIVIDENDS.

when to be

34. As large a dividend as can with safety be paid shall Dividends. be paid by every assignee under this Act within six months paid. from the date of any assignment made hereunder, and earlier if required by the inspectors; and thereafter a further dividend shall be paid every six months, and more frequently if required by the inspectors, until the estate is wound up and disposed of. R.S.M. c. 8, s. 34.

dividend

35. So soon as a dividend sheet is prepared notice there- Notice of of shall be given by letter posted to each creditor, inclosing sheet. an abstract of receipts and disbursements, showing what interest has been received by the assignee for moneys in his hands, together with a copy of the dividend sheet, noting thereon the claims objected to, and stating whether any reservation has or has not been made therefor; and, after the expiry of eight days from the day of mailing such notice, abstract and dividend sheet as aforesaid, dividends on all claims not objected to within that period shall be paid. R.S.M. c. 8, s. 35.

ADMINISTRATION OF ESTATE.

be removed

Province,

to be deposit

36. No property or assets of an estate assigned under Assets not to the provisions of this Act shall be removed out of the Pro- out of the vince without the order of a judge of the Court of King's and moneys Bench, and the proceeds of the sale of any such property or ed in a bank. assets and all moneys received on account of any estate shall be deposited by the assignee in one of the incorporated banks within this Province, and shall not be withdrawn or removed without the order of such judge, except in payment of dividends and other charges incidental to the winding up of the estate, which shall include rent, wages, mortgages, secured and preferred and partly secured and preferred claims.

(2) Any assignee or other person acting in his stead Penalty. or on his behalf violating the provisions of this section shall be liable to a penalty of five hundred dollars, which may be recovered summarily with costs before any of the judges aforesaid, and one-half of the said penalty shall go to the person suing therefor, and the other half shall belong to the said estate; but, in default of payment of the said penalty and all costs which may be incurred in any action or proceeding for the recovery thereof, such assignee or other person may be imprisoned for any period not exceeding thirty days, and shall be disqualified from acting as assignee of any estate while such default continues. R.S.M. c. 8, s. 36.

Accounts to to be kept accessible.

Gifts, trans

fers, etc., made by

insolvents

which defeat

creditors

to be void.

37. Upon the expiration of one month from the first meeting of creditors, or as soon as may be after the expiration of such period, and afterwards from time to time at intervals of not more than three months, the assignee shall prepare, and keep constantly accessible to the creditors, accounts and statements of his doings as such assignee, and of the position of the estate. R.S.M. c. 8, s. 37.

FRAUDULENT OR PREFERENTIAL TRANSFERS.

38. Subject to the provisions of sections 44 to 47 of this Act, every gift, conveyance, assignment or transfer, delivery over or payment of goods, chattels or effects, or of or prejudice bills, bonds, notes or securities, or of shares, dividends, premiums or bonus in any bank, company or corporation, or of any other property, real or personal, made by a person at a time when he is in insolvent circumstances, or is unable to pay his debts in full, or knows that he is on the eve of insolvency, with intent to defeat, hinder, delay or prejudice his creditors, or any one or more of them, shall, as against the creditor or creditors injured, delayed or prejudiced, be utterly void. R.S.M. c. 8, s. 38.

Transfers with intent to prefer creditors.

Transfers

having effect

void, if

attacked within sixty days.

39. Subject to the provisions of said sections 44 to 47, every gift, conveyance, assignment or transfer, delivery over or payment of goods, chattels or effects, or of bills, bonds, notes or securities, or of shares, dividends, premiums or bonus in any bank, company or corporation, or of any other property, real or personal, made by a person at a time when he is in insolvent circumstances, or is unable to pay his debts in full, or knows that he is on the eve of insolvency, to or for a creditor, with intent to give such creditor preference over his other creditors, or over any one or more of them, shall, as against the creditor or creditors injured, delayed, prejudiced or postponed, be utterly void. R.S.M. c. 8, s. 39.

40. Subject to the provisions of said sections 44 to 47, of preference every such gift, conveyance, assignment or transfer, delivery over or payment as aforesaid, made to or for a creditor by a person at any time when he is in insolvent circumstances, or is unable to pay his debts in full or knows that he is on the eve of insolvency, and which has the effect of giving such creditor a preference over the other creditors of the debtor, or over one or more of them, shall, in and with respect to any action or proceeding which, within sixty days thereafter, is brought, had or taken to impeach or set aside such transaction, be utterly void as against the creditor or creditors injured, delayed, prejudiced or postponed. R.S.M. c. 8, s. 40.

days.

41. Subject to the provisions of said sections 44 to 47, Or if assignevery such gift, conveyance, assignment or transfer, delivery within sixty over or payment as aforesaid, made to or for a creditor by a person at any time when he is in insolvent circumstances, or is unable to pay his debts in full, or knows that he is on the eve of insolvency, and which has the effect of giving such creditor a preference over the other creditors of the debtor or over one or more of them, shall, if the debtor, within sixty days after the transaction, makes an assignment for the benefit of his creditors, be utterly void as against the assignee or any creditor authorized to take proceedings to avoid the same under section 48 hereof. R.S.M. c. 8, s. 41.

or

actions to

42. A transaction shall be deemed to be one which has what transthe effect of giving a creditor a preference over other creditors be deemed within the meaning of the two last preceding sections, if preferential. by such transaction a creditor is given or realizes or is placed in a position to realize payment, satisfaction security for the debtor's indebtedness to him, or a portion thereof, greater proportionately than could be realized by or for the unsecured creditors generally of such debtor, or for the unsecured portion of his liabilities, out of the assets of the debtor left available and subject to judgment, execution, attachment or other process; and such effect shall not Intent or be deemed dependent upon the intent or motive of the debtor motive or upon the transaction being entered into voluntarily or under pressure; and no pressure by a creditor, or want of Pressure or notice to the creditor alleged to have been so preferred of knowledge on the debtor's circumstances, inability or knowledge as afore- creditor not said, or of the effect of the transaction, shall avail to pro- transaction. tect the transaction, except as provided by sections 44 and 47 hereof. R.S.M. c. 8, s. 42.

immaterial.

want of

part of

to save the

for certain

include

endorser.

43. When the word "creditor" or "creditors" occurs in "Creditor" any of the five last preceding sections, such word shall be purposes to deemed to include any surety and the endorser of any pro- surety and missory note or bill of exchange who would, upon payment by him of the debt, promissory note or bill of exchange, in respect of which such suretyship was entered into or such endorsement was given, become a creditor of the person giving the preference within the meaning of said sections, and such word shall include a cestui que trust or other person to whom the liability is equitable only. R.S.M. c. 8, s. 43.

for benefit of

44. Nothing in the six last preceding sections shall apply Assignments to any assignment made to an official assignee or, with the creditors and consent of a majority of the creditors having claims of one sales, etc., hundred dollars and upwards, computed according to the protected.

bona fide