Sec. CS. Unclaimed dividends.-a. Dividends which remain unclaimed for six months after the final dividend has been declared shall be paid by the trustee into court.

Instead of permitting the unclaimed dividends to be indefinitely tied up, and perhaps ultimately inuring to the benefit of the depository in which held, pending a claimant therefor, this section provides a determinate period for making claim, after which such dividends are to be distributed to the creditors who have not been paid in full, and the surplus given the bankrupt. Provision for the declaration and payment of dividends is found in section 65.

Dividends cannot be attached in the hands of the assignee (In re Bridgman, 2 N. B. R. 84; Jackson v. Miller, 9 N. B. R. 143); but creditor may have receiver of debtor's property, who may appear in the bankruptcy proceedings as representative of debtor. (Jackson v. Miller, 9 N. B. R. 143.)

Amounts remaining in the hands of the assignee, after discharge of a bankrupt against whose estate no debts were proved and there is reasonable cause to believe none will be proved, will upon proper petition be paid to the bankrupt. (In re Hoyt, 3 N. B. R. 13; Fed. Cas. 6806; citing In re James, 2 N. B. R. 78; Fed. Cas. 7175; In re Haynes, 2 N. B. R. 78; Fed. Cas. 6269.) The right of a bankrupt who, prior to commencement of proceedings in bankruptcy, had brought suit, reverts to him to continue such action after the trustees in bankruptcy had completed their trust, filed their final accounts and had been discharged, nothing having been done by said trustees on the original suit in the interval. (Conner v. Southern Express Co., 9 N. B. R. 138.)

b. Dividends remaining unclaimed for one year shall, under the direction of the court, be distributed to the creditors whose claims have been allowed but not paid in full, and after such claims have been paid in full the balance shall be paid to the bankrupt: Provided, That in case unclaimed dividends belong to minors such minors may have one year after arriving at majority to claim such dividends.

Sec. 67. Liens.-a. Claims which for want of record or for other reasons would not have been valid liens as against the claims of the creditors of the bankrupt shall not be liens against his estate.

[Act of 1867. SEO. 20. When a creditor has a mortgage or pledge of real or personal property of the bankrupt, or a lien thereon for securing the payment of a debt

owing to him from the bankrupt he shall be admitted as a creditor only for the balance of the debt after deducting the value of such property. . . •]

Claims otherwise invalid are not liens.-A lien authorized by a statute in compliance with certain provisions concerning record and notice is not complete until the statutory requisites are complied with; and if these are postponed until after the filing of a petition in bankruptcy, on which an adjudication follows, no lien will exist (In re Sabin, 12 N. B. R. 142; Fed. Cas. 12194; 1 N. Y. Wkly. Dig. 101; In re Brunquest, 14 N. B. R. 529; 7 Biss. 208; Fed. Cas. 2055; In re Dyke & Marr, 9 N. B. R. 430; Fed. Cas. 4227); and one who has taken an inchoate security, e. g., a confession of judgment, cannot, on learning later of the insolvency of the debtor, perfect the same by entering it of record. (Clark v. Iselin et al., 9 N. B. R. 19; 10 Blatchf. 201; 21 Pittsb. Leg. J. 82; Fed. Cas. 2825.) The docketing of a judgment on a day that is declared a holiday by statute is void and confers no lien, for the term "holiday" imports dies non juridicus (In re Worthington, 14 N. B. R. 388; 3 Cent. Law J. 526; 8 Chi. Leg. News, 362; 14 Alb. Law J. 153; Fed. Cas. 18052); and a judgment recovered after a general assignment for the benefit of creditors, without preference, creates no lien on the property so assigned, although such assignment be subsequently set aside upon application of an assignee in bankruptcy (Belden, Ass., v. Smith et al., 16 N. B. R. 302; Fed. Cas. 1242); also a judgment which, by the laws of the state in which it was recovered, is not a valid and binding lien, will not be recognized as a lien in proceedings in bankruptcy (In re Cozart, 3 N. B. R. 126; Fed. Cas. 3313); and where goods taken under an execution have been relinquished before filing a petition in bankruptcy, no lien is created in favor of the judgment creditor. (Sage, Jr., v. Wynkoop, Ass., 16 N. B. R. 363; Fed. Cas. 12215.) A mechanic's lien for work done and material furnished, which is not perfected prior to filing of petition in bankruptcy, will not be recognized. (In re Dey, 3 N. B. R. 81; 3 Ben. 450; Fed. Cas 3870.)

A chattel mortgage of a stock of goods, which permits the mortgagor to dispose of the goods in due course of trade, is fraudulent as to other creditors, and is void as to them, without reference to the good faith of the mortgage debt, or the intentions of the mortgagor as to fraud (In re Foster, 18 N. B. R. 64; 10 Chi. Leg. News, 315; Fed. Cas. 4964; Second Nat. Bank v. Hunt, 4 N. B. R. 198; Kane, Ass., v. Rice, 10 N. B. R. 469; Fed. Cas. 7609; Robinson et al. v. Elliott, Ass., 11 N. B. R. 553; 22 Wall. 513; Smith, Ass., etc. v. Ely et al., 10 N. B. R. 553; Fed. Cas. 13044); and a chattel mortgage void as against creditors under state law and under which mortgagee had taken possession, having reasonable cause to believe debtor insolvent, is void as against assignee in bankruptcy (Harvey, Ass., v. Crane, 5 N. B. R. 218; 2 Biss. 496; 3 Chi. Leg. News, 341; Fed. Cas. 6178); but a chattel mortgage of a stock of goods, executed by one co

partner and assented to by the other partners, containing a stipulation that the mortgagors are to remain in possession of the goods as agents of the mortgagee, and account to him monthly for all sales of the mortgaged property until the indebtedness is paid, is valid and does not indicate fraud per se. (Hawkins, Ass., v. Bank, 2 N. B. R. 108; 1 Dill. 462; Fed. Cas. 6244.) A mortgage of goods and chattels situate partly in New York and partly in New Jersey, and recorded only in the firstnamed state, is valid against creditors of the mortgagor as to that portion of the property situate in New York, and void as to that portion situate in New Jersey. (In re Soldiers' Business Messenger and Dispatch Co., 2 N. B. R. 162; 3 Ben. 204; 2 Amer. Law T. Rep. Bankr. 87; Fed. Cas. 13163.)

B., in 1857, not in debt, conveyed certain realty by deed absolute on its face, but in reality in trust to his wife. In 1867 B. was adjudged a bankrupt, until which time he remained in possession of the realty, and the property was sold by the assignee. In 1869 the deed was recorded and a bill was filed to set aside the sale. The bill was dismissed, the omission to record being a fraud on subsequent creditors. (Barker v. Smith et al., 12 N. B. R. 474; 2 Woods, 87; 2 Amer. Law T. Rep. (N. S.) 386; Fed. Cas. 986.) A personal claim of indebtedness against bankrupt's estate does not constitute a lien upon property of the estate in the hands of one making such claim. (Sedgwick, Ass., v. Casey, 4 N. B. R. 161; 4 Ben. 562; Fed. Cas. 12610; In re Krogman, 5 N. B. R. 116; Fed. Cas. 7936.)

b. Whenever a creditor is prevented from enforcing his rights as against a lien created, or attempted to be created, by his debtor, who afterwards becomes a bankrupt, the trustee of the estate of such bankrupt shall be subrogated to and may enforce such rights of such creditors for the benefit of the estate.

c. A lien created by or obtained in or pursuant to any suit or proceeding at law or in equity, including an attachment upon mesne process or a judgment by confession, which was begun against a person within four months before the filing of a petition in bankruptcy by or against such person shall be dissolved by the adjudication of such person to be a bankrupt if (1) it appears that said lien was obtained and permitted while the defendant was insolvent and that its existence and enforcement will work a preference, or (2) the party or parties to be benefited thereby had reasonable cause to believe the defendant was insolvent and in contemplation

of bankruptcy, or (3) that such lien was sought and permitted in fraud of the provisions of this Act; or if the dissolution of such lien would militate against the best interests of the estate of such person the same shall not be dissolved, but the trustee of the estate of such person, for the benefit of the estate, shall be subrogated to the rights of the holder of such lien and empowered to perfect and enforce the same in his name as trustee with like force and effect as such holder might have done had not bankruptcy proceedings intervened.

The trustee, upon his appointment, is vested by operation of law with the title of the bankrupt, as of the date he was adjudged a bankrupt; among other things, of the property transferred by him in fraud of his creditors. (Sec. 70, a.) 'Adjudication" means the date of the entry of the decree declaring the party bankrupt, or if appealed, the date when the decree is confirmed. (Sec. 1-2.) A person is "insolvent " under the act when the aggregate of his property, excluding property conveyed, transferred, concealed or removed, or permitted so to be, with intent to defraud, hinder or delay creditors, shall not, at a fair valuation, be sufficient to pay his debts. (Sec. 1-15.) The computation of time in this section would in all probability be controlled by the provisions of section 31.

Attachments within four months.-The conditional lien acquired by the levy of an attachment or of its being laid in the hands of a garnishee may be diverted by the operation of a general bankrupt or a local insolvent law, if the language of the act be sufficiently clear to indicate that purpose. (Corner v. Miller et al., 1 N. B. R. 98.) Proceedings in bankruptcy dissolve an attachment issued within four months immediately preceding the commencement of such proceedings (Duffield, Ass., etc. v. Horton et al., 19 N. B. R. 13; Bennington v. Lowenstein et al., 1 N. B. R. 157; Fed. Cas. 10938; Appleton v. Stevers, Ass., 10 N. B. R. 515; In re Ellis, 1 N. B. R. 154; Fed. Cas. 4400; Kaiser et al. v. Richardson, 14 N. B. R. 391; Duffield et al., Ass., v. Horton et al., 16 N. B. R. 59; Miller v. Bowles, 10 N. B. R. 515; 58 N. Y. 263; Bank of Columbia v. Overstreet et al., 13 N. B. R. 154); so, on motion in a state court, an attachment issued within four months before the beginning of bankruptcy proceedings will be dissolved, although judgment has been entered and proceeds of sale paid to plaintiff by the sheriff (Dickerson v. Spaulding et al., Ass., 15 N. B. R. 313); and if proceedings in bankruptcy are commenced within four months after the issuing of an attachment, a judgment entered therein afterward is void (King v. Loudon, 14 N. B. R. 383); and an officer in posses

sion of property under writ of attachment cannot refuse to deliver it until his fees are paid. (In re Stevens, 5 N. B. R. 298; 2 Biss. 373; 10 Amer. Law Reg. (N. S.) 523; Fed. Cas. 13392.) But an attachment is not dissolved by institution of proceedings in bankruptcy if the attachment was placed in the garnishee's hands more than four months prior to the commencement of the proceedings (Hatch v. Seely, 13 N. B. R. 380); and where a judgment is recovered in an attachment suit and process is issued for sale of the property, the lien relates back to the date of the attachment. (Hudson, Ass., v. Adams, 18 N. B. R. 102; 3 Cin. Law Bul. 1066; Fed. Cas. 6833.)

Plaintiff attached personal property of debtor more than four months before proceedings in bankruptcy. The defendant procured a receiptor and the property went into his hands. The defendant was adjudged bankrupt. Held, that plaintiff was entitled to a judgment in rem, and could levy execution upon the money which might be collected from the receiptor. (Batchelder v. Putnam, 13 N. B. R. 404.) A creditor levied an attachment on a debtor's property within four months before proceedings in bankruptcy were commenced. A composition was proposed by the debtor and adopted and confirmed. The defendant then filed a special plea in the attachment suit, setting up the facts, having theretofore moved to quash the attachment. It was held that the attaching creditor's debt was extinguished and the attachment would fall. (Miller v. Mackenzie et al., 13 N. B. R. 496.) Where an attaching creditor, under the provisions of the state law, pays off a mortgage, upon the dissolution of the attachment by bankruptcy he will be entitled to repayment out of the proceeds resulting from the sale of the property in the hands of the assignee. (Whithed et al. v. Pillsbury and Titcomb, Ass., 13 N. B. R. 241; Fed. Cas. 17572.)

Costs when attachment is dissolved.— An attaching creditor whose attachment is set aside by bankruptcy proceedings is not entitled to his costs out of the bankrupt estate, unless it is shown that the attachment was employed in aid of the proceedings and to the benefit of the creditors generally (In re Irons & Coon, 18 N. B. R. 95; Fed. Cas. 7067); and it has also been held that where an attachment is dissolved by proceedings in bankruptcy, the costs that accrued under the attachment prior to the filing of the bankrupt's petition are not a valid lien upon the property in controversy. If incurred at defendant's request, however, they might be. (In re Preston, 6 N. B. R. 545; Fed. Cas. 11394.)

Execution liens.- A judgment taken contrary to the Bankrupt Act is not void unless a petition in bankruptcy is filed by or against the debtor within four months from the entry of the judgment. (In re Fuller, 4 N. B. R. 29; 18 Pittsb. Leg. J. 82; 2 Chi. Leg. News, 373; Fed. Cas. 5148.) An execution creditor claimed a lien on money in the hands of the marshal, by virtue of proceedings supplementary to execution commenced prior to bankruptcy, but which, before appointment of receiver,