of assignee may be filled by appointment of the court, or at its discretion by an election by the creditors, in the manner herein before provided, at a regular meeting, or at a meeting called for the purpose, with such notice thereof in writing to all known creditors, and by such person, as the court shall direct. The resignation or removal of an assignee shall in no way release him from performing all things requisite on his part for the proper closing up of his trust and the transmission thereof to his successors, nor shall it affect the liability of the principal or surety on the bond given by the assignee. When, by death or otherwise, the number of assignees is reduced, the estate of the debtor not lawfully disposed of shall vest in the remaining assignee or assignees, and the persons selected to fill vacancies, if any, with the same powers and duties relative thereto as if they were originally chosen. Any former assignee, his executors or administrators, upon request, and at the expense of the estate, shall make and execute to the new assignee all deeds, conveyances, and assurances, and do all other lawful acts requisite to enable him to recover and receive all the estate. And the court may make all orders which it may deem expedient to secure the proper fulfillment of the duties of any former assignee, and the rights and interests of all persons interested in the estate.

SEC. 13. If the assignee fails to give the bond within such time as the judge orders, not exceeding ten days after notice to him of such order, the judge shall remove him and appoint another in his place.]

Upon the complaint of creditors courts of bankruptcy will remove trustees for cause, after due notice and hearing. (Sec. 2-17.) His re fusal to permit a reasonable opportunity for the inspection of the accounts, papers and records of estates in his charge by the parties in interest, when directed by the court so to do, makes him liable to punishment and a forfeiture of his office. (Sec. 29, c.) As to whether, in the case of the death of one of three trustees, another must be appointed to take his place, quære. (Sec. 47, b.) The statute is silent as to permitting a trustee to resign. After accepting the office it appears that he must serve until removed by the court (sec. 2-17), and such removal can only be made by the judge. (Orders XIII.)

Beath or removal of trustee.- A motion to set aside the appointmat of the assignee can be entertained by the district judge and not by the register. (In re Stokes, 1 N. B. R. 180: 1 Amer. Law T. Rep. Bankr. 122: Fed. Chs. 18174)

For neglect or fraud.-Upon a creditor's petition for removal of assigret it was held that assignee who had neglected to secure bankrupt's

property and had shown gross neglect should be removed (In re Morse, 7 N. B. R. 56; Fed. Cas. 9852); and one who is charged with mismanagement and whose removal is asked will be removed, but he will be protected against costs where it appears that he acted in good faith (In re Mallory, 4 N. B. R. 38; Fed. Cas. 8990); and where an assignee fails to deposit funds in his hands, suffers foreclosure of a mortgage and neg. lects to purchase it at less than its face, and where he is guilty of mismanagement of the funds of the estate, he will be ordered to show cause why he should not be removed (In re Price, 4 N. B. R. 137; Fed. Cas. 11409; In re Sacchi, 6 N. B. R. 398; 43 How. Pr. 252; Fed. Cas. 12200; In re Blodgett et al., 5 N. B. R. 472; Fed. Cas. 1552); and an assignee who has a deposit with a bank which bought up claims against his estate at a discount to set off against such deposit, who has knowledge of the facts and does not disclose them to other creditors, nor dispute such claims for setoff, should be removed. (In re Perkins, 8 N. B. R. 56; Fed. Cas. 10982.)

Soliciting appointment.― Assignee offered creditors to pay their claims in consideration of giving him power to vote for them at election of assignee. It was held that the election should be disregarded. (In re Haas et al., 8 N. B. R. 189; Fed. Cas. 5884.) But creditors having knowledge of an assignee soliciting his own election and permitting him to qualify and act for months, without objection, are too late in asking his removal on that ground. (In re Mallory, 4 N. B. R. 38; Fed. Cas. 8990.)

When not removable.- An assignee chosen by the greater part in number and value of the creditors is assignee by virtue of the law, and the court will not remove him in the absence of imputation, either upon his capacity or integrity (In re Grant, 2 N. B. R. 35; Fed. Cas. 5692); and where it appeared that a majority of creditors in number and value had voted to remove assignee, but that the creditors were few, and several voting for removal were parties to mortgages and transactions which the assignee was seeking to impeach, that the movement was made on behalf of such parties, and no money remained in the hands of the assignee, and nothing remained to be done excepting to settle those disputes, the court refused to remove the assignee. (In re Dewey, 4 N. B. R. 139; Fed. Cas. 3849.)

The court will not set aside election of assignee on account of any irregularity in admitting a claim when its exclusion would not affect the result. (In re Jackson et al., 14 N. B. R. 449; 7 Biss. 280; Fed. Cas. 7123; R. S. 5034, 5078, 5083.)

Proceedings against trustee.-A trustee can only be called to account by petition to the court, setting forth the grounds. (In re Hicks et al, 19 N. B. R. 449; Fed. Cas. 6457.)

Sec. 47. Duties of trustees.-a. Trustees shall respectively (1) account for and pay over to the estates under their control all interest received by them upon property of such

estates; (2) collect and reduce to money the property of the estates for which they are trustees, under the direction of the court, and close up the estate as expeditiously as is compatible with the best interests of the partics in interest; (3) 2 deposit all money received by them in one of the designated depositories; (4) disburse money only by check or draft on the depositories in which it has been deposited; (5)3 furnish such information concerning the estates of which they are trustees and their administration as may be requested by parties in interest; (6) keep regular accounts. showing all amounts received and from what sources and all amounts expended and on what accounts; (7) lay before the final meeting of the creditors detailed statements of the administration of the estates; (8) make final reports and file final accounts with the courts fifteen days before the days fixed for the final meetings of the creditors; (9) pay dividends within ten days after they are declared by the referees; (10) report to the courts, in writing, the condition of the estates and the amounts of money on hand, and such other details as may be required by the courts, within the first month after their appointment and every two months thereafter, unless otherwise ordered by the courts; and (11) set apart the bankrupt's exemptions and report the items and estimated value thereof to the court as soon as practicable after their appointment.

5

4

1 Courts of bankruptcy are authorized to bring in and substitute additional persons or parties in proceedings in bankruptcy, when necessary for the complete determination of a matter in controversy. (Sec. 2-6.) 2 Banking institutions are to be designated by order of court as de positories for the money of bankrupt estates. (Sec. 61.)

8 A refusal by the trustee to permit a reasonable opportunity to inspect the accounts, papers and records relating to estates in his charge renders him liable to fine and a forfeiture of his office. (Sec. 29, c.)

4 Referees are required to declare dividends and prepare and deliver to the trustee dividend sheets showing the dividends declared and to whom payable (sec. 39, a), and to give at least ten days' notice of the declaration and time of payments of such dividends. (Sec. 58, a.)

5 The bankrupt should file with his schedule a claim for such exemp tions as he may be entitled to. (Sec. 7, a.) This law in no wise affects

[Act of 1867. SEC. 14. The assignee shall have authority, under the order and direction of the court, to redeem or discharge any mortgage or conditional contract, or pledge or deposit, or lien upon any property, real or personal, whenever payable, and to tender due performance of the condition thereof, or to sell the same subject to such mortgage, lien or other encumbrances. The assignee shall immediately give notice of his appointment, by publication at least once a week for three successive weeks in such newspapers as shall for that purpose be designated by the court, due regard being had to their circulation in the district or in that portion of the district in which the bankrupt and his creditors shall reside, and shall, within six months, cause the assignment to him to be recorded in every registry of deeds or other office within the United States where a conveyance of any lands owned by the bankrupt ought by law to be recorded; and the record of such assignment, or a duly certified copy thereof, shall be evidence thereof in all courts.

SEC. 15.

That the assignee shall demand and receive, from any and all persons holding the same, all the estate assigned, or intended to be assigned, under the provisions of this act; and he shall sell all such unencumbered estate, real and personal, which comes to his hands, on such terms as he thinks most for the interest of the creditors; but upon petition of any person interested, and for cause shown, the court may make such order concerning the time, place, and manner of sale as will, in its opinion, prove to the interest of the creditors; and the assignee shall keep a regular account of all money received by him as assignee, to which every creditor shall, at reasonable times, have free

resort.

SEC. 16. That the assignee shall have the like remedy to recover all said estate, debts and effects in his own name, as the debtor might have had if the decree in bankruptcy had not been rendered and no assignment had

been made.

the allowances to bankrupts of exemptions which are prescribed by the state laws in force at the time of filing the petition in the state wherein they have had their domicile for the six months, or the greater portion thereof, immediately preceding the filing of the petition. (Sec. 6.) If the bankrupt has an insurance policy which has a cash surrender value, payable to himself or his estate, he may pay or secure the cash surrender value to the trustee, and continue to hold and own such policy free from the claims of creditors. (Sec. 70, a.)

SEC. 17.

That the assignee shall, as soon as may be after receiving any money belonging to the estate, deposit the same in some bank in his name as assignee, or otherwise keep it distinct and apart from all other money in his possession; and shall, as far as practicable, keep all goods and effects belonging to the estate separate and apart from all other goods in his possession, or designated by appropri ate marks, so that they may be easily and clearly distinguished, and may not be exposed or liable to be taken as his property or for the payment of his debts. When it appears that the distribution of the estate may be delayed by litigation or other cause, the court may direct the temporary investment of the money belonging to such estate in securities to be approved by the judge or a register of said court, or may authorize the same to be deposited in any convenient bank upon such interest, not exceeding the legal rate, as the bank may contract with the assignee to pay thereon. He shall give written notice to all known creditors, by mail or otherwise, of all dividends, and such notice of meetings, after the first, as may be ordered by the court.

SEC. 28. .. If at any time there shall be in the hands of the assignee any outstanding debts or other property, due or belonging to the estate, which cannot be collected and received by the assignee without unreasonable or inconvenient delay or expense, the assignee may, under direction of the court, sell and assign such debts or other property in such manner as the court shall order.]

The duties of trustees are set forth at length in General Orders XVII. Collection of assets, etc.- In an action brought by assignee in bankruptcy to foreclose, a state court has jurisdiction (Burlingame, Ass., etc. v. Parce et al., 17 N. B. R. 246); and in bringing an action to collect a debt he may select the forum, and a state court would have jurisdiction. (Russell, Ass., etc. v. Owen, 15 N. B. R. 322.) He may prosecute suits to recover assets of a bankrupt in a district other than that in which the decree in bankruptcy is entered. (Dutcher v. Wright, Ass., 16 N. B. R. 331; 94 U. S. 553.) Where an attorney agreed with assignee to conduct a suit on contingent fee, and retained the fee agreed upon, upon motion to require the attorney to pay over a portion of the money retained, it was held that the bankrupt court had power to determine the amount of attorney's fee and to order the attorney to pay over balance of moneys retained by him. (In re Brinker et al., 19 N. B. R. 195; Fed. Cas. 1882.) An assignee obtained authority to employ counsel to prosecute a claim on a contingent contract, but suppressed facts which, if known to the court, would have prevented the giving of authority. It was held that the contract could be set aside, but a reasonable compensation should