SECTION SEVENTY TITLE TO PROPERTY § 70. Title to Property.-a The trustee of the estate of a bankrupt, upon his appointment and qualification, and his successor or successors, if he shall have one or more, upon his or their appointment and qualification, shall in turn be vested by operation of law with the title of the bankrupt as of the date he was adjudged a bankrupt, except in so far as it is to property which is exempt, to all (1) documents relating to his property; (2) interests in patents, patent rights, copyrights, and trade-marks; (3) powers which he might have exercised for his own benefit, but not those which he might have exercised for some other person; (4) property transferred by him in fraud of his creditors; (5) property which prior to the filing of the petition he could by any means have transferred or which might have been levied upon and sold under judicial process against him: Provided, That when any bankrupt shall have any insurance policy which has a cash surrender value payable to himself, his estate, or personal representatives, he may, within thirty days after the cash surrender value has been ascertained and stated to the trustee by the company issuing the same, pay or secure to the trustee the sum so ascertained and stated, and continue to hold, own, and carry such policy free from the claims of the creditors participating in the distribution of his estate under the bankruptcy proceedings, otherwise the policy shall pass to the trustee as assets; and (6) rights of action arising upon contracts or from the unlawful taking or detention of, or injury to, his property. b All the real and personal property belonging to bankrupt estates shall be appraised by three disinterested appraisers; they shall be appointed by, and report to, the court. Real and personal property shall, when practicable, be sold subject to the approval of the court; it shall not be sold otherwise than subject to the approval of the court for less than seventy-five per centum of its appraised value. c The title to property of a bankrupt estate which has been sold, as herein provided, shall be conveyed to the purchaser by the trustee. d Whenever a composition shall be set aside, or discharge revoked, the trustee shall, upon his appointment and qualification, be vested as herein provided with the title to all of the property of the bankrupt as of the date of the final decree setting aside the composition or revoking the discharge. e The trustee may avoid any transfer by the bankrupt of his property which any creditor of such bankrupt might have avoided, and may recover the property so transferred, or its value, from the person to whom it was transferred, unless he was a bona fide holder for value prior to the date of the adjudication. Such property may be recovered or its value collected from whoever may have received it, except a bona fide holder for value. For the purpose of such recovery any court of bankruptcy as hereinbefore defined, and any State court which would have had jurisdiction if bankruptcy had not intervened, shall have concurrent jurisdiction.* f Upon the confirmation of a composition offered by a bankrupt, the title to his property shall thereupon revest in him. Analogous provisions: In U. S. As to property in general passing to the trustee, Act of 1867, § 14, R. S., § 5044; Act of 1841, § 3; Act of 1800, §§ 10, 11, 17, 27, 50; As to patents, copyrights, rights of action and the like; Act of 1867, § 14, R. S., § 5046; Act of 1841, § 3; Act of 1800, §§ 13, 17; As to sales by the trustee, Act of 1867, §§ 15, 25, R. S., §§ 5062, 5062-b, 5063, 5064, 5065, 5066; As to sales of incumbered property, Act of 1867, § 20, R. S., § 5075. In Eng. As to property passing to the trustee, Act of 1883, §§ 43, 44, 59; Act of 1914, §§ 37, 38, 63; As to burdensome property, Act of 1883, 55; Act of 1890, § 13; Act of 1914, § 54; As to sales by the trustee, Act of 1883, §§ 56(1), 70; Act of 1914, §§ 55, 74. In Can.: Act of 1919, §§ 6, 20, 25, 33. Cross-references: To the law: in writing, § 1(13). "Document "includes book, deed or instrument Appointment of receivers to preserve property of estate, § 2(3). Bond where creditors ask for appointment of receiver prior to adjudica- Fraudulent transfer as act of bankruptcy, § 3-a. Partnership property, disposition of proceeds, etc., § 5. Bankrupt to execute necessary papers to convey title, § 7-a(4) (5). * This sentence was added by the amendatory act of 1903. Cross-references - Continued: Suits or proceedings in which stays may be granted, § 11. Discharge; application for; when granted and revoked, §§ 14, 15. Trustees, duties in respect to estate; rights in respect to property belonging to estate, § 47-a (2). Preferences, what constitute; recovery by trustee, § 60. Liens, void and voidable; recovery of property for benefit of estate, § 67. To the General Orders: Trustee to make inventory of property belonging to estate, XVII. Sales of property regulated, XVIII. Compounding claims against estate, XXVIII. To the Official Forms: Appointment, oath and report of appraisers, Form No. 13. Sale of property; petition and order, No. 42; for sale subject to lien, No. 44; for private sale, No. 45; for sale of perishable property, No. 46. To the Supplementary Forms: For additional forms concerning the sale of the bankrupt's property, see Forms, Nos. 280-302, Vol. III, post. SYNOPSIS OF SECTION TITLE TO PROPERTY I. Section in General, 1632. a. Comparative legislation, 1632. b. Scope of section, 1633. c. Conflict between bankruptcy act and State law, 1633. II. Trustee Vested with Title of Bankrupt, 1634. a. In general, 1634. b. Time of vesting, 1635. (1) IN GENERAL, 1635. (2) TITLE VESTS AT ADJUDICATION, BUT RELATES BACK TO FILING OF PETITION, 1635. c. Title pending appointment of trustee, 1638. d. What property vests, 1639. (1) IN GENERAL, 1639. (2) AFTER ACQUIRED PROPERTY, 1641. e. Subject to all claims, ilens and equities, 1643. (1) IN GENERAL, 1643. (2) DISPOSITION OF PROPERTY SUBJECT INCUMBRANCE, 1648. TO LIEN OR II. Trustee Vested with Title of Bankruptcy - Continued. f. Title vests subject to charge for support of widow or minor children, 1650. III. Title to Specific Property, 1651. a. In general, 1651. b. Documents relating to bankrupt's property, 1651. c. Patents, copyrights, and trade-marks, 1652. d. Personal powers, 1653. e. Property fraudulently transferred, 1653. (1) IN GENERAL, 1653. (2) PROPERTY AFFECTED; CHARACTER OF TRANSFER, 1654. (3) ACTUAL OR IMPLIED FRAUD, 1655. (4) EFFECT OF A GENERAL ASSIGNMENT, 1655. (5) RECEIVERSHIP; DISSOLUTION OF CORPORATION, 1657. f. Claims against the United States, 1657. g. Property which might have been transferred or levied upon, 1657. (1) IN GENERAL, 1657. (2) TEST TO BE APPLIED, 1658. (3) PLEDGED PROPERTY, 1660. (4) STOCK BROKERAGE TRANSACTIONS, 1662. (I) In general, 1662. (II) Stock pledged by broker, 1664. (III) Costs and expenses, 1668. (5) PROPERTY IN WHICH OTHERS HAVE AN INTEREST, 1669. (6) EQUITIES IN PROPERTY, 1671. (7) INTEREST IN REAL PROPERTY, 1671. (I) In general, 1671. (II) Equity of redemption, 1673. (III) Life estate, 1673. (IV) Remainders and contingent interests, 1674. (V) Rents of mortgaged property, 1675. (VI) Dower and curtesy rights, 1677. (VII) Public land rights, 1678. (VIII) Crops, 1679. (IX) Leases, 1679. (8) LEGACIES AND INHERITANCES, 1679. (9) PROPERTY OF BANKRUPT'S WIFE, 1679. (10) BANK DEPOSITS, 1680. (11) PROPERTY HELD BY BANKRUPT AS TRUSTEE, 1680. (I) In general, 1680. (II) Mingling trust funds, 1682. (12) PROPERTY HELD IN TRUST FOR BANKRUPT, 1686. III. Title to Specific Property - Continued. (13) LICENSES, FRANCHISES AND PERSONAL PRIVILEGES, 1688. (I) In general, 1688. (II) Pensions, 1688 (III) Personal contracts, 1688. (IV) Franchises and licenses, 1688. (V) Seat in stock exchange, 1690. (VI) Good will, 1692. (14) LIFE INSURANCE POLICIES, 1692. (I) In general, 1692. (II) Policies with cash surrender value, 1692. (III) Policies not payable to insured, 1696. (IV) Exemption of life insurance policies, 1699. (V) Effect of assignment, 1699. (VI) Bankrupt as beneficiary of another, 1699. (15) FIRE INSURANCE POLICIES, 1699. (16) PROPERTY SOLD TO BANKRUPT ON CONDITION, 1701. (I) In general, 1701. (II) Property sold C. O. D., 1705. (III) Property leased with privilege of purchase, 1706. (IV) Property sold subject to approval, 1708. (17) PROPERTY HELD BY BAILEE OR AGENT; CONSIGNMENT FOR SALE, 1709. (I) In general, 1709. (II) Tracing proceeds, 1715. (III) Public notice of agency, 1716. (18) PROPERTY AFFECTED BY FRAUDULENT REPRESENTATIONS, 1716. (I) In general, 1716. (II) Concealment of insolvency or false representation as to solvency, 1717. (III) Intent not to pay, 1719. (IV) Proof of insolvency, or intent not to pay, 1720. h. Rights of action, 1721. (1) IN GENERAL, 1721. (2) PARTITION ACTIONS, 1722. (II) Recovery of unpaid stock subscriptions, 1725. (III) Liabilities of officers, directors and stock holders, 1730. |