liens that can or may be acquired upon or against such assets. 1901, c. 2, s. 87.

1207. Distribution of funds. After payment of all allowances, expenses and costs, and the satisfaction of all special and general liens upon the funds of the corporation to the extent of their lawful priority, the creditors shall be paid proportionately to the amount of their respective debts, and the creditors shall be entitled to distribution on debts not due, making in such case a rebate of interest, when interest is not accruing on the same, and the surplus funds, if any, after payment of the creditors and the costs, expenses and allowances aforesaid, and the preferred stockholders, according to their respective shares, and if there still be a surplus it shall be divided and paid to the general stockholders proportionately, according to their respective shares. Upon the distribution of the assets of an insolvent corporation, judgment of dissolution shall be entered.

Code, s. 670; 1901, c. 2, ss. 63, 89. See sections 846-849; 1219-1232. Order for distribution of funds should not be made until fund is in court; such order can be made at any time as to funds then in court: Strauss v. Loan Asso., 118-556. Receiver required to pay all debts if assets sufficient: McIver v. Hardware Co., 144-483; Bank v. Cotton Mills, 115-515-and if assets insufficient must distribute equally and ratably subject to priorities already accrued: Worth v. Bank, 122-404; Bank v. Cotton Mills,

115-515.

Judgment against receiver merely establishes debt, and gives judgment creditor no preference in distribution of assets: Lacy v. Clinton Loan Asso., 132-131.

Corporate debts must be paid before stockholders get anything: McIver v. Hardware Co., 144-483.

Receiver is not justified in appealing from a judgment in an action between creditors as to distribution of fund: Bank v. Bank, 127-432. Section merely referred to in Asheville Div. v. Aston, 92-586.

1208. Dissolution does not abate actions; receivers to be notified. Any action now pending, or to be hereafter begun, against any corporation which may become dissolved before final judgment, shall not abate by reason thereof, but no judgment shall be entered therein, except upon notice to the trustees or receivers of the corporation.

1901, c. 2, s. 64.

1209. Judgment of forfeiture against a corporation. If it shall be adjudged that a corporation against which an action shall have been brought, has forfeited by neglect, abuse, or surrender, its corporate rights, privileges and franchises, judgment shall be rendered

that the corporation be excluded from such corporate rights, privileges and franchises, and that the corporation be dissolved.

Code, s. 617.

1210. Persons claiming to be corporation liable for costs of action. If judgment be rendered in such action against a corporation, or against persons claiming to be a corporation, the court may cause the costs therein to be collected by execution against the persons claiming to be a corporation, or by attachment or process against the directors or other officers of such corporation.

Code, s. 618.

1211. Clerk superior court to file copy of judgment dissolving corporation with secretary of state; costs thereof. A copy of every judgment dissolving a corporation or forfeiting its charter shall be forthwith filed by the clerk of the court, in the office of the secretary of state, and a note thereof shall be made by the secretary of state, on the charter or certificate of incorporation, and in the index thereof, and be published by him in the annual report hereinafter provided for, the cost of which shall be taxed by the clerk of the superior court, in the action wherein the corporation is dissolved. 1901, c. 2, s. 65.

1212. How issued and on what levied. If any judgment shall be rendered against a corporation, the plaintiff may sue out such executions against the property of a corporation as is provided by law to be issued against the property of natural persons, which executions may be levied as well on the current money as on the goods, chattels, lands and tenements of such corporation.

1901, c. 2, s. 66. See section 627. Proceedings supplemental to execution lie against corporations: LaFountain v. Underwriters Asso., 79-514. Corporate property and franchise must go together in certain cases and can not be sold separately: James v. Railroad, 121-527; Pipe and Foundry Co. v. Howland, 111-625; Gooch v. McGee, 83-59. Court may enjoin sale under execution of franchise and property of corporation when it is in hands of the court: Atty. General v. Roanoke Nav. Co., 84-705.

1213. Agent must furnish information as to property to officer with. Every agent or person having charge or control of any property of a corporation, on request of any public officer having for service a writ of execution against it, shall furnish to him the names of the directors and officers thereof, and a schedule of all its property, including debts due or to become due to it, so far as he may have knowledge of the same.

1901, c. 2, s. 67.

1214. Shares of stock sold under. Any share or interest in any bank, insurance company, or other joint stock company, that is or may be incorporated under the authority of this state, or incorporated or established under the authority of the United States, belonging to the defendant in execution, may be taken and sold by virtue of such execution, in the same manner as goods and chattels. 1901, c. 2, s. 69. Shares of stock could not be sold under execution prior to statute: Pool v. Glover, 24-129.

1215. Officer entitled to information as to stock. The clerk, cashier, or other officer of such company, who has at the time the custody of the books of the company, shall, upon exhibiting to him the writ of execution, give to the officer having such writ a certificate of the number of shares or amount of the interest held by the defendant in such company; and if he shall neglect or refuse so to do, or if he shall wilfully give a false certificate thereof, he shall be liable to the plaintiff for the amount due on said execution, with costs.

1901, c. 2, s. 70. As to action to compel corporation to transfer on books stock purchased under execution sale, see Morehead v. Railroad, 96-362.

1216. Against debts due corporation; liability of agents refusing compliance. If any officer holding an execution shall be unable to find other property belonging to the corporation liable to execution, he or the judgment creditor may elect to satisfy such execution in whole or in part, out of any debts due to the corporation; and it shall be the duty of any agent or person having custody of any evidence of such debt, to deliver the same to the officer, for the use of the creditor, and such delivery, with a transfer to the officer in writing, for the use of the creditor, and notice to the debtor shall be a valid assignment thereof; and such creditor may sue for and collect the same in the name of the corporation, subject to such equitable setoffs on the part of the debtor as in other assignments; and every agent or person who shall neglect or refuse to comply with the provisions of this and the last preceding section shall be himself liable to pay to the execution creditor the amount due on said execution, with costs.

1901, c. 2, s. 68.

1217. Proceedings when custodian of corporate books is a nonresident. When the clerk, cashier, or other officer of any corporation incorporated under the laws of this state, who has the custody of the books of registry of the stock thereof, shall be nonresident in this state, it shall be the duty of the sheriff receiving a writ of execution issued out of any court of this state against the goods and

chattels of a defendant in execution holding stock in such company, to send by mail a notice in writing, directed to such nonresident clerk, cashier, or other officer, at the postoffice nearest his reputed place of residence, stating in such notice that he, the said sheriff, holds such writ of execution, and out of what court, at whose suit, for what amount, and against whose goods and chattels such writ has been issued, and that by virtue of such writ he, the sheriff, seizes and levies upon all the shares of stock of such company held by the defendant in execution on the day of the date of such written notice; and it shall also be the duty of such sheriff on the day of mailing such notice, to affix and set up upon any office or place of business of such company, within his county, a like notice in writing, and on the same day to serve like notice in writing upon the president and directors of said company, or upon such of them as reside in his county, either personally or by leaving the same at their respective places of abode; and the sending, setting up and serving of such notices in the manner aforesaid, shall constitute such levy so made a valid levy of such writ upon all shares of stock in such company held by the defendant in execution, which have not at the time of the receipt of such notice by said clerk, cashier, or other officer, who has custody of the books of registry of the stocks thereof, been actually transferred by the defendant; and thereafter any transfer or sale of such shares by the defendant in execution shall be void as against the plaintiff in said execution, or any purchaser of such stock at any sale thereunder.

1901, c. 2, s. 71.

1218. Duty and liability of nonresident custodian of corporate books. The nonresident clerk, cashier, or other officer in such company, to whom notice in writing is sent, as prescribed in the preceding section, shall thereupon send forthwith, by mail or otherwise, to the officer having such writ, a statement of the time when he received such notice and a certificate of the number of shares held by the defendant in such company at the time of the receipt by him of such notice, not actually transferred on the books of said company; and the said sheriff, or other officer, shall, on receipt by him of such certificate, insert the number of such shares in the inventory attached to said writ; and if such clerk, cashier, or other officer in such company, neglect to send such certificate as aforesaid, or if he shall wilfully send a false certificate, he shall be liable to the plaintiff for double the amount of all damages occasioned by such neglect, or false certificate, to be recovered in an action against him; but the neglect to send, or miscarriage of such certificate, shall not impair the validity of the levy upon the stock.

1901, c. 2, s. 72.

XIII. RECEIVERS.

1219. When appointed. Whenever any corporation shall become insolvent, or shall suspend its ordinary business for want of funds to carry on the same, or be in imminent danger of insolvency, or has forfeited its corporate rights, or its corporate existence shall have expired by limitation, a receiver may be appointed by the court under the same regulations as are provided by law for the appointment of receivers in other cases.

Code, s. 668; 1901, c. 2, s. 73. See also section 1203. For appointment of receivers generally, see sections 846, 847. See also 1203; 679-682. Receiver may be appointed, when corporation fails to meet obligations or suspends business: Holshouser v. Copper Co., 138-251-or when corporation insolvent or in imminent danger of insolvency: Bank v. Cotton Mills, 115-515 -or when trustee of sinking fund to pay debts of corporation loaned the money to a bankrupt firm without authority: Railroad v. Wilson, 81-223-or where corporation dissolved and there is a contest as to rights of different creditors to the assets, there being no officer of the corporation, Dobson v. Simonton, 78-63.

Receiver should not be appointed to enable stockholder, who has deposited stock as collateral for debt, to have an account of corporate assets: Huet v. Lumber Co., 138-443.

Organization of new corporation at once dissolves the old; and creditors of defunct corporation are entitled to have receiver appointed to apply its property to their debts: Marshall v. R. R., 92-322.

Where prior action for appointment of receiver is pending, court will not entertain jurisdiction of another action in which same relief demanded, Young v. Rollins, 85-485-also where corporation dissolved by legislature and powers transferred to new corporation, courts can not on ex parte application appoint receiver of defunct corporation, Ibid.

Party to proceedings should not be appointed receiver, Ibid. Powers of directors and stockholders cease upon appointment of receiver, and they can make no contract which will bind corporation after such appointment: Lenoir v. Imp. Co., 117-475.

Party who has had receiver appointed has no right to have him discharged against protest of non-satisfied creditor who might be damaged by such discharge: Ibid.

Existence of corporation not affected by fact that corporation has gone into hands of receiver and property sold: Pinchback v. Mining Co., 137-171. As to duration of receivership, see Asheville Div. v. Aston, 92586; Young v. Rollins, 90-125.

Section merely referred to in Smathers v. Bank, 135-413; Fisher v. Bank, 132-774; Wilson v. Leary, 120-92; Cotton Mills v. Cotton Mills, 115-485; Dunn v. Johnson, 115-258; Foundry Co. v. Killian, 99-504.

1220. Debts provided for, receiver discharged. Whenever a receiver shall have been appointed, and it shall afterwards appear that the debts of the corporation have been paid, or provided for,