1746: 19 George 2, c.32: An act for amending the laws relating to bankrupts.
WHEREAS many persons within the description of, and liable to the Statutes concerning bankrupts, frequently commit secret acts of bankruptcy unknown to their creditors and other persons, with whom, in the course of trade, they have dealings and transactions; and after the committing thereof continue to appear publickly and carry on their trade and dealings, by buying and selling of goods and merchandizes, drawing, accepting, and negotiating bills of exchange, and paying and receiving money on account thereof in the usual way of trade, and in the same open and publick manner as if they were solvent persons, and had not become bankrupt; and whereas the permitting such secret acts of bankruptcy to avoid and defeat payments, really and bona fide made in the cases, and under the circumstances above mentioned, where the persons receiving the same had not notice of or were privy to such persons having committed any act of bankruptcy, will be a great discouragement to trade and commerce, and a prejudice to credit in general: be it therefore enacted by the King’s most excellent majesty, by and with the advice and consent of the lords spiritual and temporal, and commons, in this present parliament assembled, and by the authority of the same,
[After 29 October, 1746, Creditors of bankrupts not liable to refund to the assignees.]
That, from and after the twenty ninth day of October, in the year of our Lord one thousand seven hundred and forty six, no person who is or shall be really and bona fide a creditor of any bankrupt, for or in respect of goods really and bona fide sold to such bankrupt, or for or in respect of any bill or bills of exchange really and bona fide drawn, negotiated, or accepted by such bankrupt, in the usual and ordinary course of trade and dealing, shall be liable to refund or repay to the assignee or assignees of such bankrupt’s estate,
[Monies received before notice of insolvency, &c.]
any money which, before the suing forth of such commission, was really and bona fide, and in the usual and ordinary course of trade and dealing, received by such person of any such bankrupt, before such time as the person receiving the same shall know, understand, or have notice that he is become a bankrupt, or that he is in insolvent circumstances.
II. And whereas merchants, and other traders, frequently lend money on bottom-ree, or at respondentia, and in the course of their trade frequently cause their ships or vessels, and the goods and merchandizes loaded thereon, to be insured; and whereas commissions of bankruptcy have issued against the obligor in such bottom-ree, or respondentia bond, or the under-writer, or assurer in such assurance, before the loss of the ship or goods, in such bond or policy of insurance mentioned, hath happened, it hath been made a question, Whether the obligee or obligees in such bond, or the assured in such policy of insurance, should be let in to prove their debts, or be admitted to have any benefit or dividend under such commission, which may be a discourage-merit to trade: for remedy whereof be it enacted by the authority aforesaid,
[Obligees in bottom-ree, &c. admitted to claim]
That from and after the said twenty ninth day of October, the obligee in any bottom-ree or respondentia bond, and the allured in any policy of insurance, made and entered into upon a good and valuable consideration, bona fide, shall be admitted to claim; and after the loss or contingency shall have happened, to prove his, her, or their debt and demands in respect of such bond or policy of insurance, in like manner as if the loss or contingency had happened before the time of the issuing of the commission of bankruptcy against such obligor, or insurer;
[Dividends.]
and shall be intitled unto, and shall have and receive a proportionable part, share, and dividend of such bankrupt’s estate, in proportion to the other creditors of such bankrupt, in like manner as if such loss or contingency had happened before such commission issued;
[Bankrupts discharged from debts on policy of insurance, &c.]
and all and every person or persons against whom, from and after the said twenty ninth day of October, any commission of bankruptcy shall be awarded, shall be discharged of and from the debt or debts owing by him, her, or them, on every such bond and policy of insurance, as aforesaid, and shall have the benefit of the several Statutes now in force against bankrupts, in like manner to all intents and purposes, as if such loss or contingency had happened, and the money due in respect thereof, had become payable, before the time of the issuing of such commission.