shall be divided amongst the creditors, as by the said recit ed act is directed, to which rule and direction the assig nee or assignees of the bankrupt's estate shall conform, as often as one hundred pounds shall be got in and received from such bankrupt's estate, and shall be and are hereby indemnified for what they shall do in pursuance of such directions of the said commissioners as aforesaid; provided that it shall not be lawful for the commissioners to direct such monies to be paid into the hands of the said commissioners, or into any banking house or other house of trade or business in which the commissioners or any of them, or the solicitor to the commission, are, or is interested or concerned as a partner or partners, or otherwise.

This section did not seem to be necessary, as it was expressly directed by Lord Loughborough's order in 1794, where the creditors do not elect a banker, that there shall be a covenant inserted in the assignment by the commissioners that the money shall be paid into the bank of England. That still remaining in force, the commissioners can have no choice under this section.

Lord Eldon had censured commissioners and solicitors to the commission for placing the bankrupt's money in banking houses in which they had a concern.

See Regulations, 6 Ves. 1. and Exparte Lacey, 6 Ves. 721.

The only difference in that respect, in England, I conceive, would be this; that before the statute they might by the Chancellor have been censured and removed; since this act they may be indicted for a misdemeanor, it being a common law misdemeanor to act contrary to the prohibition of a statute.

49 Geo. 3. c. 121. sec. 4.

Assignees disobeying such directions to be

charged 20 per

cent. on the

And be it further enacted by the authority aforesaid, money otherThat from and after the passing of this act, in all cases

wise retained or employed.

An accountant employed by the assignees.

in which any assignee or assignees of any bankrupt's estate shall wilfully retain in his or their hands, or otherwise employ for his or their own benefit, any sum or sums of money, part of the estates of such bankrupts, contrary to the aforesaid direction of the said recited act passed in the fifth year of the reign of King George the second, or of the aforesaid direction in this act contained, he or they shall be charged in his or their accounts with the estates of such bankrupts, with such sum or sums of money as shall be equal to the amount of interest, computed at the rate of twenty pounds per centum per annum, on all such sums of money so retained or employed by him or them for the time or times during which he or they shall have so retained or employed the same contrary to the said direction of the said acts or either of them: and the commissioners of bankrupts are hereby required to charge such assignee or assignees in their accounts with such sum or sums of money accordingly.

Lord Hardwicke ordered assignees, who were making a private advantage of the bankrupt's effects, to pay four per cent, the interest allowed at that time. Exparte Lane,

1 Atk. 90.

Lord Rosslyn ordered an assignee who mixed the bankrupt's property with his own, and kept it at his banker's, to pay five per cent. interest. Treves v. Towns hend, 1 Bro. 384.

The assignees have no allowance for their trouble. If they wish to employ an accountant to assist them, they ought to obtain the consent and approbation of the creditors, otherwise the commissioners will have a diffi culty in allowing the expence in their accounts. If the commissioners charge the assignees 201. per cent. they ought not to divide it the same day; the assignees ought to have an opportunity of appealing to the Chancellor.

49 Geo. 3. c 121. s. 5.

And for the purpose of ascertaining in what manner the Commissioners money which shall from time to time come to the hands of

not to declare a dividend till a

in writing be

signees, &c.

such assignee or assignees has been employed, the com- true statement missioners shall in no case declare a dividend upon admission made upon oath by the asonly of a certain sum in the hands of the assignees,but shall require such assignee or assignees to deliver upon oath a true statement in writing of all the sums of money received by such assignee or assignees, and when received by him or them respectively; and on what accounts and how employed, and shall examine such statement and compare the receipts with the payments, and ascertain what balances have been from time to time in the hands of such assignee or assignees respectively, and shall inquire for what reason any sum appearing to be in the hands of such assignee or assignees ought to be retained, and thereupon shall declare a dividend on the remaining sum, specifying in their order the sum so allowed to be retained, and the grounds on which they may conceive it proper that the same should be retained, and not divided amongst the creditors.

All this was the duty of the commissioners before the passing of this statute, except that they used to divide at the first dividend what the assignees admitted to be in their hands, without always administering an oath to them. But at a final dividend they were always sworn to the truth of their account, and some commissioners also made them answer upon oath upon every other occasion. By taking a balance at different times, the commissioners can see whether the assignees have incurred the penalty of the former section.

If assignees be

come bankrupt

estate, their

future effects

will be liable to the payment.

49 Geo. 3. c. 121. s. 6.

Provided always, and be it further enacted by the au having 100% of thority aforesaid, that from and after the first day of the bankrupt's January, one thousand eight hundred and ten, in case any commission of bankrupt shall issue against any person who is or shall be an assignee of the estate and effects of any bankrupt, and who shall at the time of such commission issued against him, be indebted to the estate of the bankrupt, of whose estate and effects he was an assignee to the amount of one hundred pounds or upwards, in respect of money come to his hands as such assignee, and wilfully retained or employed by him for his own benefit, the certificate of conformity, which may be obtained by such assignee so becoming bankrupt as aforesaid, shall only have the effect of freeing the person of such person from arrest and imprisonment; but the future estate and effects of every such person shall remain liable for so much of his debt to the estate of the bankrupt of whose estate and effects he was an assignee, as shall not be paid by dividends under the same commission, together with lawful interest for the whole debt,in like manner as if he had not obtained his certificate; the tools of trade, the necessary household goods and furniture, and necessary wearing apparel of such bankrupt and his wife and children, only excepted.

Till the whole debt is paid by such an assignee, who must of course be removed, there cannot be a final dividend of the bankrupt's estate to which he is indebted. But the assignees might sell and assign that contingent in terest, by which means the bankrupt's accounts might be finished.

49 Geo. 3. c. 121. s. 7.

money paid in

estate to be in

chequer bills.

Provided always and be it enacted, that it shall be commissioners lawful for the commissioners, upon the application of the way direct the assignees, or of any five or more of the creditors who have on bankrupt's proved their debts under the commission, on notice given vested in exto the assignees of such intended application, when and as often as it shall appear to the said commissioners expedient and beneficial to the estate and effects of any bankrupt, that the money so paid in to any person or persons as aforesaid for the purpose of being divided amongst the creditors, or any money retained to answer any claimi which may have been duly entered upon the proceedings under the said bankruptcy, or any dividends ordered to be retained by the assignees should be laid out at interest, to order and direct that the whole or any part of such money shall be invested in the purchase of exchequer bills for the benefit of such creditors and claimants, and to direct where and with whom such exchequer bills shall be kept for safe custody, and to cause such exchequer bills to be sold when it shall appear to them necessary and proper, and to direct the proceeds thereof to be again laid out in the purchase of exchequer bills, or to be applied for the benefit of the creditors and claimants according to their several interests, as to the said commissioners shall seem meet, subject nevertheless to the authority and controul of the Lord Chancellor, Lord Keeper, or Lords Commissioners for the custody of the great seal.

The commissioners must always upon the application of the assignees, or of any five creditors, think it beneficial to the estate that the money shall be laid out in exchequer bills, as they bear interest, and the money in the bank or a banker's hands does not.

The commissioners are entitled to a fee of one pound each for making the order.