Page images
PDF
EPUB

CHAP. IX.

an account of all moneys received by him, and on the first days of Art. VI. January, April, July and October, in each and every year, to make and file a written statement, verified by his oath, that such statement is correct and true, showing the amount of money received by such receiver, his agents or attorneys, the amount he has a right to retain under the provisions of this title, and the items for which he claims to retain the same, and the distributive share due each person interested therein.

He shall pay such distributive share to the person or persons entitled thereto, on demand, at any time after such statement, Such account, statement and all the books and papers of the corporation in the hands of such receiver shall, at all reasonable times, be open for the inspection of all persons having an interest therein. And in case of neglect or refusal to comply with either of the above requirements, or any duty imposed upon him by this title, the supreme court, at either a general or special term, shall, on the application of the party aggrieved, unless such neglect or refusal shall be satisfactorily explained to the court, forthwith remove such receiver and appoint some suitable person as receiver in his place. Such removal shall not vitiate or annul any legal proceedings had by such receiver; but such proceedings shall be continued by such successor as if no removal had been made. Such receiver shall also be liable to pay to the party interested interest at the rate of ten per cent per annum on all moneys due to such party and retained by him more than one day after such demand made as aforesaid. [As amended by Laws of 1858, chap. 348, and saved by the repealing act of 1880, which declares the sectionapplicable to a permanent receiver appointed as prescribed in g 1788 of the Code of Civil Procedure.See post, p. 260.] (Sections 43-57 were repealed by Laws of 1880, chap. 245.)

[465] Pentz, 2 Sandf. Ch. 257; Verplank v. The Mercantile Ins. Co., 2 Paige, 452; Attorney-General v. The Life and Fire Ins. Co., 4 id. 225; Matter of Bank of Niagara, 6 id. 217; Holbrook v. Receiver of Am- , erican Fire Ins. Co., id. 227; Bank Commissioners v. Bank of Buffalo, id. 503 ; Halliday v. Noble, i Barb. 148 ; Devendorf v. Beardsley, 23 id. 656 ; Noble v. Halliday, i N. Y. 332 ; Matter of Harmony Fire and Marine Ins. Co., 45 id. 315.

Mann v.

CHAP. IX.

Art. VI.

Receiver to make

on prem

Notice of assessment

L. 1852, Chap. 71- An Act to facilitate the collection of debts against corporations.

Passed March 19, 1852. (SECTION 1 repealed by Laws of 1880, chap. 245.)

§ 2. In case the corporation in regard to which a receiver assessment has been or shall hereafter be appointed is or shall be a mutual ium notes. insurance company, such receiver shall have full power, under the

authority and sanction of the court appointing him, to make all such assessments on the premium notes belonging to such corporation as may be necessary to pay the debts of such corporation, as by the charter thereof the directors of such corporation have authority to make ; and the notice of such assessment may be given in the same manner as is provided in the charter of said company for

the directors of said company to give; and the said receiver shall to be given. have the like rights and remedies upon and in consequence of the

non-payment of such assessments as are given to the corporation or the directors thereof by the charter of such corporation,

Williams v. Babcock, 25 Barb. 113; Sands v. Sanders, 25 How. 88; S. C. 26 N. Y. 239; Bangs v. Gray, 15 Barb. 266; Shaughnessy v. Rensselaer Ins. Co., 21 id. 608 ; Devendorf v. Beardsley, 23 id. 666 ; Hyatt v. McMahon, 25 id. 467; Thomas v. Whallon, 31 id. 175; Bangs v. Duckinfield, 18 N. Y. 597 ; Savage v. Medbury, 19 id. 36.

§ 3. Such receiver is authorized to receive a voluntary surrenof policies.

der of all policies issued by such corporation, or to cancel the policies issued by such corporation, in all cases where, by the charter of such corporation, the directors thereof are authorized to receive the surrender of or cancel the policies issued by such corporation,

§ 4. The court by which any such receiver may have been or acts of cor- shall be appointed, is authorized upon a proper action, instituted poration,

for that purpose by such receiver, to examine by a reference or otherwise, as it may deem proper, into the proceedings and acts of such corporation; and if it shall appear upon such examination, that the directors or officers of such corporation, or either or any of them, have in any manner misapplied, or improperly disposed of the funds, property or effects of such corporation, it shall be lawful for such court to decree that such directors or officers of such corporation, as shall have been guilty of such misapplication or improper disposition of such funds, property or effects, to pay the same to such receiver, and to enforce such decree by such process as may be necessary to accomplish that object.

Surrender

Receiver to examine

CHAP. IX.

L. 1858, Chap. 314 - An Act to declare and extend the Art. VI.

powers of executors, assignees, receivers and other trustees, and to protect the rights of creditors and others against frauds, and for other purposes.

PASSED April 17, 1858. SECTION 1. That any executor, administrator, receiver, assignee, Trustees or other trustee of an estate, or the property and effects of an peach as.

sigament. insolvent estate, corporation, association, partnership or individual, may, for the benefit of creditors or others interested in the estate or property so held in trust, disaffirm, treat as void, and resist all acts done, transfers and agreements made, in fraud of the rights of any creditor, including themselves and others, interested in any estate or property held by or of right belonging to any such trustee or estate.

Levin v. Russell, 42 N. Y. 255.

§ 2. That every person who shall, in fraud of the rights of And have creditors and others, have received, taken, or in any manner inter-against

offenders. fered with the estate, property or effects of any deceased person, or insolvent corporation, association, partnership or individual, shall be liable in the proper action to the executors, administrators, receivers or other trustees of such estate or property for the same, or the value of any property or effects so received or taken, and for all damages caused by such acts to any such trust estate. (Section 3 repealed by Laws of 1880, chap. 245.) Britton v.

Lorenz, 3 Daly, 26; Barclay v. The Quick-silver Mining Co., 6 Lans. 31 ; Levin v. Russell, 42 N. Y. 255 ; Fort Stanwix Bank v. Leggett, 51 id. 554.

with

L. 1880, Chap. 537 – An Act in relation to receivers of insolvent corporations.

PASSED May 31,

1880. SECTION 1. All receivers of insolvent corporations who are now

Receivers required by law to make and file reports of their proceedings shall be serve

attorneyhereafter, at the time of making and filing such reports, serve a

general

copy copy thereof upon the attorney-general of this state, and receivers of their of such corporations as reported to, and were under the supervision of, the banking department prior to their appointment as such receivers, and who have not been discharged from their respective trusts, and all receivers of such corporations, that may hereafter be appointed, shall on the first day of January and July of each year, during the continuance of their respective trusts, file with the

attorney

etc.

CHAP. IX.
Art. vi. superintendent of the banking department a report, verified by oath,

in such form as the superintendent may prescribe, showing the
condition of their respective trusts. [As amended by Laws of 1881,
chap. 639.]

Attril v. Rockaway Beach Improvement Co., 25 Hun, 376, 509. Motion by § 2. In case any receiver of an insolvent corporation shall neggeneral to lect to make and file a report of his proceedings for thirty days after making the time he is now required by law to make and file such report, or report, etc.

shall neglect for the same length of time to serve a copy thereof on the attorney-general as required by the first section of this act, the attorney-general may make a motion in the supreme court for an order to compel the making and filing and serving a copy on him

of such report, or for the removal of such receiver from his office. Attorney § 3. The attorney-general may, at any time he deems that the general may move interests of the stockholders, creditors, policyholders, depositors of removing other beneficiaries interested in the proper and speedy distribution receiver,

of the assets of any insolvent corporation will be subserved thereby, make a motion in the supreme court at a special term thereof, in any judicial district, for an order removing the receiver of any insolvent corporation and appointing a receiver thereof in his stead, or to compel him to account, or for such other or additional order or orders as to him may seem proper to facilitate the closing up of the affairs of such receivership, and any appeal from any order made upon any motion under this section shall be to the general term of said court of the department in which such motion is made.

[As amended by Laws of 1882, chap. 331, $ 1.] Notice, § 4. A copy of all notices of motion and of all motion papers, etc., must be served and a copy of any other application to the court, together with a

copy of the order or judgment to be proposed thereon to the court, in every action or proceeding now pending for the dissolution of a corporation or a distribution of its assets, or which shall hereafter be commenced for such purpose, shall in all cases be served on the attorney-general, in the same manner as provided by law for the service of papers on attorneys who have appeared in actions, whether the applications but for this law would be ex parte or upon notice, and no order or judgment granted shall vary in any material respect from the relief specified in such copy, order or judgment, unless the attorney-general shall appear on the return day and have been heard in relation thereto; and any order or judgment granted in any action or proceeding aforesaid without such service of such papers upon the attorney-general, shall be void, and no receiver of

on attorney-general.

CHAP. IX.

any such corporation shall pay to any person any money directed Art. VII. to be paid by any order or judgment made in any such action or proceeding, until the expiration of eight days after a certified copy of such order or judgment shall have been served as aforesaid upon the attorney-general. [As amended by Laws of 1882, chap. 331, $ 2.]

The provisions of this act shall only apply to actions and special proceedings heretofore instituted by the attorney-general and to such as shall hereafter be instituted by him for the purposes aforesaid. [Laws of 1882, chap. 331, $ 3.]

ARTICLE VII-VOLUNTARY DISSOLUTION OF CORPORATIONS. 1828, R. S., Part III, Chap. II, Title IV, Art. 3 — Of the vol.

untary dissolution of corporations. Sec. 58–65 (Repealed.)

66. Who may be receivers; security to be given.
67 and 68 Rights, interest and authority of receivers.
69. To prosecute stockholders for arrears on their stock.
73. Notice to be given by receivers; its contents.

[467]
71. Acts of corporation after presenting petition, void.
22. Debtors to account to receivers; their powers to discover debts, etc.
23. Power of receivers to refer controversies; proceedings.
74. Duties of receivers; to call meetings of creditors, etc.
75. Subsisting contracts how cancelled.
76. Commissions to be allowed to receivers.
77. To retain moneys to cancel subsisting contracts.
78. Also to meet recovery in suits pending.
79. Order of payment of debts.
86. Second and final dividend when to be made, how notified.
81. Proceedings therein; to be final, except in certain cases.
82. Receivers not to be answerable for debts not exhibited.
83. Surplus to be distributed among stockholders.
84. Application of moneys retained to meet suit.
85. Power of court of chancery over receivers.
86. When to render accounts on oath to court.
87. Notice of intent to render, when and how to be published.
88. Duty of master to whom account is referred
89. Settlement of account by court, its effect; further accounts, etc.

90 and 91. (Repealed.) [Sections 58-65 were repealed by L. 1880, Ch. 245.]

[Sections 66 to 89, both inclusive, were saved by the repealing act of 1880, which declared them applicable to a receiver appointed as prescribed in § 2429 of the Code of Civil Procedure, post, p. 252.]

$ 66. Any of the directors, trustees or other officers of such Receivers. corporation, or any of its stockholders, may be appointed receivers, who, before entering upon the duties of their appointment, shall give such security to the people of this State, and in such penalty,

Security. as the court shall direct, conditioned for the faithful discharge of the duties of their appointment, and for the due accounting for all moneys received by them.

Matter of Bowery Bank, 16 How. 57.

§ 67. Such receivers shall be vested with all the estate, real and Their personal, of such corporation, from the time of their having filed rights. the security hereinbefore required, and shall be trustees of such

[469]

« PreviousContinue »