or upon a contract express or implied; and (5) founded upon provable debts reduced to judgments after the filing of the petition and before the consideration of the bankrupt's application for a discharge, less costs incurred and interests accrued after the filing of the petition and up to the time of the entry of such judgments.

[Act of 1867. SEC. 19. That all debts due and payable from the bankrupt at the time of the adjudication of bankruptcy, and all debts then existing but not payable until a future day, a rebate of interest being made when no interest is payable by the terms of the contract, may be proved against the estate of the bankrupt. All demands against the bankrupt for or on account of any goods or chattels wrongfully taken, converted, or withheld by him may be proved and allowed as debts to the amount of the value of the property so taken or withheld, with interest. If the bankrupt shall be bound as drawer, indorser, surety, bail, or guarantor upon any bill, bond, note, or any other specialty or contract, or for any debt of another person, and his liability shall not have become absolute until after the adjudication of bankruptcy, the creditor may prove the same after such liability shall have become fixed, and before the final dividend shall have been declared. In all cases of contingent debts and contingent liabilities contracted by the bankrupt, and not herein otherwise provided for, the creditor may make claim therefor, and have his claim allowed, with the right to share in the dividends, if the contingency shall happen before the order for the final dividend; or he may at any time apply to the court to have the present value of the debt or liability ascertained and liquidated, which shall then be done in such manner as the court shall order, and he shall be allowed to prove for the amount so ascertained. Any person liable as bail, surety, guarantor, or otherwise for the bankrupt, who shall have paid the debt, or any part thereof, in discharge of the whole, shall be entitled to prove such debt or to stand in the place of the creditor if he shall have proved the same, although such payment shall have been made after the proceedings in bankruptcy were commenced. And any person so liable for the bankrupt, and who has not paid the whole of said debt, but is still liable for the same or any part thereof, may, if the creditor shall fail or omit to prove such debt, prove the same either in the name of the creditor or otherwise, as may be provided by the rules, and subject to such regulations and limitations as

may be established by such rules. Where the bankrupt is liable to pay rent or other debt falling due at fixed and stated periods, the creditor may prove for a proportionate part thereof up to the time of the bankruptcy, as if the same grew due from day to day, and not at such fixed and stated periods.]

Claims shall not be proved against a bankrupt estate subsequent to one year after the adjudication; or if they are liquidated by litigation, and final judgment therein is rendered within thirty days before or after the expiration of such time, then within sixty days after the rendition of such judgment. (Sec. 57, n.) The proof of claims consists of a statement under oath in writing, signed by a creditor, setting forth the claim, the consideration therefor, and whether any, and if so what, securities are held therefor, and whether any, and if so what, payments have been made thereon, and that the sum claimed is justly owing from the bankrupt to the creditor. (Sec. 57, a.) Further provisions as to proof and allowance of claims may be found under section 57, a-n.

Claims of creditor who have received preference will not be allowed unless the preferences are surrendered (sec. 57, g), nor will debts owing to the United States, a state, county or municipality as penalty or forfeiture, except for the amount of the pecuniary loss sustained by the act out of which the penalty or forfeiture arose. (Sec. 57, j.)

The court may permit proof of a partnership claim against the individual estates, and vice versa, and marshal assets of partnership and individual estates so as to prevent preferences and secure equitable distribution. (Sec. 5, g.)

Section 17 gives a list of debts which, though provable, are not affected by a discharge. Section 65 provides for the declaration and payment of dividends on all allowed claims. A set-off or counter-claim shall not be allowed in favor of any debtor of the bankrupt which is not provable against the estate. (Sec. 68, b, 1.)

Fixed liability; judgment.-A judgment from which an appeal is taken before proceedings in bankruptcy is a provable debt; but no dividends will be paid until judgment on the writ of error (In re Sheehan, 8 N. B. R. 345; Fed. Cas. 12737); and on proof of claim, judgment of appellate court was not conclusive, there being terms imposed (In re Shelbourne, 19 N. B. R. 359; Fed. Cas. 12745); but a confession of judgment by an insolvent debtor for the benefit of a creditor who has cause to believe that the debtor is insolvent is a fraud and deprives creditor of the right to prove claim against the bankrupt, notwithstanding he may disclaim any benefit and surrenders such judgment to the assignee. (In re Colman, 2 N. B. R. 172; 7 Blatchf. 192; Fed. Cas. 2979.) Creditors obtained judgment against bankrupts in an action for fraud, conspiracy and deceit. The court held that the debt was provable and bankrupt was entitled to stay of proceedings, including execution against person

(In re Van Buren, 19 N. B. R. 149; Fed. Cas. 16833); but a judgment for a fine imposed for a crime is not a debt provable against a bankrupt (In re Sutherland, 3 N. B. R. 93; Deady, 416; 8 Amer. Law T. Rep. (N. S.) 39; Fed. Cas. 13639; citing People v. Spaulding, 10 Paige, Ch. R., 284); and in a suit for that purpose an assignee recovered a judgment against preferred creditor, setting aside the preference. The creditor sought to prove his claim, but the court held the claim could not be proved. (In re Cramer, 13 N. B. R. 225; 8 Chi. Leg. News, 106; Fed. Cas. 3345.) See also sec. 57, ante, CLAIMS PROVABLE, p. 284.

Fixed liability on an instrument in writing absolutely due - On leases. The landlord will be entitled to prove his claim in bankruptcy for the unexpired term of a lease, even though he has been preferred under a state law, for his rent up to the end of the year (In re Wynne, 4 N. B. R. 4; 2 Amer. Law T. Rep. Bankr. 116; Fed. Cas. 18117); but if the assignee elects to accept a lease held by bankrupt, he makes himself liable on behalf of the estate for the rent (In re Laurie, Blood and Hammond, 4 N. B. R. 7); and where suit was brought for a month's rent, part of which accrued before bankruptcy and part afterwards, it was held, for the part before bankruptcy, plaintiffs could prove against the estate, and the discharge will release it; for that part afterwards they could recover. (Treadwell et al. v. Marden. 18 N. B. R. 353.) A marshal held property seized on the premises which the bankrupt had leased. The landlord claimed rent for the premises. It was held that the rent was to be measured by the value of the premises for storage of the goods. (In re Wheeler et al., 18 N. B. R. 385; Fed. Cas. 17490.) See also sec. 57, ante, CLAIMS PROVABLE, p. 284.

Interest.- Where borrower gives his note for the loan, with legal interest, and pays for the accommodation, such contract is infected with usury, and if the lex loci provide for the forfeiture of the debt the con tract is void, and the debt cannot be proved against the estate in bankruptcy (In re Pittock, 8 N. B. R. 78; 2 Sawy. 416; Fed. Cas. 11189); and the reservation of a greater rate of interest than six per centum by bank, or discounting a promissory note, does not render the debt for the principal one not provable in bankruptcy (In re Moore, 1 N. B. R. 123); but notes given for the excess over legal interest are not provable in bankruptcy. (Shaffer v. Fritchery & Thomas, 4 N. B. R. 179; Fed. Cas. 12697.) See also sec. 57, ante: CLAIMS PROVABLE, p. 284; THE ALLOWANCE OR REJECTION OF CLAIMS, p. 289.

Debts due wife.- Husband reduced a legacy to possession and gave a note to his wife for the proceeds. He became bankrupt and the wife sought to prove the note. It was held that the bequest created no separate estate in the wife and the note was a nullity (Canby, Ass., v. MeLear, 13 N. B. R. 22; Fed. Cas. 2378); and a claim for alimony is not a provable debt, an I proceedings to enforce its payment cannot be stayed by the bankrupt court. (In re Lachemeyer, 18 N. B. R. 280; 13 Alb. Law T 212; Fed. Cas. 7930.)

On insurance.-See also sec. 57, ante: CLAIMS PROVABLE, p. 284; THE ALLOWANCE OR REJECTION OF CLAIMS, p. 289.

On mortgages.- When a mortgage is given to indemnify the mortgagee for his advances and he lends his acceptance to mortgagor, and after bankruptcy of the latter buys up paper at a discount, he can only charge against the mortgage what he has paid to take up his acceptances (Ex parte Ames, In re McKay and Aldus, 7 N. B. R. 230; 1 Lowell, 561; Fed. Cas. 323.) A mortgage executed by bankrupt, prior to bankruptcy, to secure a note given for services of an attorney in contemplated proceedings in bankruptcy, is void; but the claim for services may be proved. (In re Evans, 3 N. B. R. 62; Fed. Cas. 4552.) See also sec. 57, ante: A MOIETY ONLY OF A CLAIM PROVABLE, p. 276; THE ALLOWANCE OF SECURED CLAIMS, p. 293; SUBROGATION, p. 301.

On indorsement.- An indorser (now bankrupt) is not released from liability on the note of a corporation by purchase of said note by one intending to take the property of said corporation. (Ex parte Balch, In re Elliott Felting Mills, 13 N. B. R. 160; 2 Lowell, 440; Fed. Cas. 789.) But before proving against estate of indorser, claimant received dividend from estate of maker. It was held that he could prove only for balance (In re Hicks et al., 19 N. B. R. 299; Fed. Cas. 6456); and the holder of a promissory note may prove his claim against the estates of both maker and indorser and receive dividends. (National Mount Wollaston Bank v. Porter et al., 17 N. B. R. 329.) It was held that an indorsed note was not a secured claim (In re Broich et al., 15 N. B. R. 11; 7 Biss. 303; Fed. Cas. 1921; sec. 507, R. S.); and finally, a note payable on demand was not presented for payment for four years, when attempt was made to hold the indorser, who had become bankrupt. The claim was disallowed. (In re Crawford, 5 N. B. R. 301; Fed. Cas. 3364.) See also sec. 57, ante: AMENDMENT OF PROOF, p. 275; A MOIETY ONLY OF A CLAIM PROVABLE, p. 276; THE PROOF IN GENERAL, p. 277; PROOF OF COMMERCIAL PAPER, p. 286; THE ALLOWANCE OF SECURED CLAIMS, p. 293; SUBROGATION, p. 301. Partnerships.- A firm note issued to a partner for his share in the capital stock, and by him transferred to his wife, may be proved against the estate of such partner, but not against the partnership (In re Frost & Westfall, 3 N. B. R. 180; Fed. Cas. 5135); and where note was indorsed by one member of a partnership without the knowledge of the other, it cannot be proved against the firm (In re Irving, 17 N. B. R. 22; Fed. Cas. 7074); and notes drawn by one partner in the firm name, apparently in the course of business, without actual knowledge by the holder of want of authority or misapplication, entitle the holder to their allowance against the bankrupt estate of the firm (Bush, Appellant, v. Crawford, Ass., 7 N. B. R. 299; Fed. Cas. 2224; reversing In re Dunkle and Dreisbach, 7 N. B. R. 107; Fed. Cas. 4161); and a note given in an individual transaction of one of the bankrupts, though signed in the firm name, is not provable against the firm assets (In re Forsyth and

Murtha, 7 N. B. R. 174; Fed. Cas. 4948); and a creditor holding the note of a copartnership, indorsed by one of its members, may prove in bankruptcy against the copartnership fund, and also against the separate estate of the copartner indorsing (Stephenson v. Jackson, 9 N. B. R. 255; 2 Hughes, 204; Fed. Cas. 13374); and a bond whereby several members of a firm bind themselves jointly and severally to pay amount therein expressed may be proven against the assets of the individual estate of each member of the firm. (In re Bigelow et al., 2 N. B. R. 121; 3 Ben. 146; 2 Amer. Law T. Rep. Bankr. 41; Fed. Cas. 1897.)

Banks.- A note taken for money loaned by a savings bank prohibited by law from loaning money on personal security is void, and does not constitute a debt provable in bankruptcy. (In re Jaycox & Green, 13 N. B. R. 122; Fed. Cas. 7244.) A. deposited money with bankrupt's branch, and bankrupt made a public offer of twenty-five per cent. Branch bank received from her check for deposit and paid her dividend at rate of twenty-five per cent., so A.'s account balanced, but it was not entered on ledger from which schedule in bankruptcy was made. Such settlement was held valid and binding. (In re Bank of North Carolina v. Dewey, 19 N. B. R. 314; Fed. Cas. 897.) See also sec. 57, ante, THE DETERMINATION OF OBJECTIONS TO CLAIMS, p. 294. On doubtful paper.- Where a note is subject to offset for an amount greater than the amount of the note it is not a provable debt. (In re Ford et al., 16 N. B. R. 426; Fed. Cas. 4932.) The claim of one of the creditors uniting in a petition was a note for $250 falling due four days after the filing of the petition. It was not provable at date of filing. (In re Riker, 18 N. B. R. 393; Fed. Cas. 11833.) Where interest in advance has been put into a note, and the maker is adjudged a bankrupt before it becomes due, the interest not yet due shall be abated therefrom. (In re Riggs, Lechtenberg & Co., 8 N. B. R. 90.) A depositor of a bank delivered to the bank check for his full balance, accepting, in part payment, bonds. Upon petition to expunge proof of debt of assignee in bankruptcy of the bank, it was held that such bonds, when accepted by debtor in payment of his debt, constituted a valid payment. (Holleman v. Dewey, Ass., 7 N. B. R. 269; 2 Hughes, 341; Fed. Cas. 6607.) A surety is entitled to prove against the estate of his bankrupt principal, and receive dividends on the amount which he is required to pay, without deducting any security held by him. (Jervis v. Smith, 3 N. B. R. 147.) A university undertook to raise an endowment, and the bankrupt subscribed and gave his note for his subscription. He subscribed toward the erection of a new university building and paid a part of his subscription. Afterward he gave his note to the university for his two subscriptions and for money borrowed. It was held that the whole claim was valid (Sturgis, Ass., v. Colby et al., 18 N. B. R. 168; Fed. Cas. 13574); and the holder of a negotiable note assigned after the filing of the petition may prove the debt against the bankrupt maker. (In re Murdock, 3 N. B. R. 36; 1 Lowell, 362; Fed. Cas.