&c. In the calculation and distribution of a dividend the trustee shall make provision for debts provable in bankruptcy appearing from the bankrupt's statements, or otherwise, to be due to persons resident in places so distant from the place where the trustee is acting that in the ordinary course of communication they have not had sufficient time to tender their proofs, or to establish them if disputed, and also for debts provable in bankruptcy, the subject of claims not yet determined. He shall also make provision for any disputed proofs or claims, and for the expenses necessary for the administration of the estate or otherwise, and, subject to the foregoing provisions, he shall distribute as dividend money in hand.

all

61. Right of Creditor who has not proved Debt before Declaration of a Dividend.+- Any creditor who has not proved his debt before the declaration of any dividend or dividends shall be entitled to be paid out of any money for the time being in the hands of the trustee any dividend or dividends he may have failed to receive before that money is applied to the payment of any future dividend or dividends, but he shall not be entitled to disturb the distribution of any dividend declared before his debt was proved by reason that he has not participated therein.

There is a slight verbal alteration in the second line of this clause. But this does not seem material. And it may be said that with the exception of the last sentence, which is new, this clause is identical in effect with clause 42 of the Act of 1869. The stringent provision that, subject to the qualifications specified, the trustee "shall distribute as dividend all money in hand," is not only new but important.

This clause re-enacts clause 43 of the Bankruptcy Act of 1869.

62. Final Dividend.-When the trustee has realized all the property of the bankrupt, or so much thereof as can, in the joint opinion of himself and of the committee of inspection, be realized without needlessly protracting the trusteeship, he shall declare a final dividend, but before so doing he shall give notice in manner prescribed to the persons whose claims to be creditors have been notified to him, but not established to his satisfaction, that if they do not establish their claims to the satisfaction of the Court within a time limited by the notice, he will proceed to make a final dividend, without regard to their claims. After the expiration of the time so limited, or, if the Court on application by any such claimant grant him further time for establishing his claim, then on the expiration of such further time, the property of the bankrupt shall be divided among the creditors who have proved their debts, without regard to the claims of any other persons.

63. No Action for Dividend.t-No action for a dividend shall lie against the trustee, but if the trustee refuses to pay any dividend the Court may, if it thinks fit, order him to pay it, and also to pay out of his own money interest thereon for the time that it is withheld, and the costs of the application.

* Up to this point the clause proceeds on the lines of section 44 of the Act of 1869, though as will be seen, it requires that the "opinion" referred to shall be the "joint opinion" of the trustee and the committee of inspection, while under the Act of 1869 it was the opinion of the trustee alone. The provisions which follow are new. For the manner in which unclaimed and undistributed funds or dividend under this or former Acts are to be dealt with, see post, clause 162.

This clause re-enacts clause 46 of the Bankruptcy Act of 1869.

64. Power to allow Bankrupt to manage Property.* (1.) The trustee, with the permission of the committee of inspection, may appoint the bankrupt himself to superintend the management of the property of the bankrupt or of any part thereof, or to carry on the trade (if any) of the bankrupt for the benefit of his creditors, and in any other respect to aid in administering the property in such manner and on such terms as the trustee may direct.

(2.) Allowance to Bankrupt for Maintenance or Service. The trustee may from time to time, with the permission of the committee of inspection, make such allowances as he may think just to the bankrupt out of his property for the support of the bankrupt and his family, or in consideration of his services if he is engaged in winding up his estate, but any such allowance may be reduced by the Court.

65. Right of Bankrupt to Surplus.+-The bankrupt shall be entitled to any surplus remaining after payment in full of his creditors, with interest, as by this Act provided, and of the costs, charges, and expenses of the proceedings under the bankruptcy petition.

*

This clause differs from clause 26 of the Bankruptcy Act of 1869 in three respects. The clause in the former Act did not require the permission of the committee of inspection for the employment of the bankrupt; the present clause does. The former clause left "the creditors" to settle the manner and terms on which the bankrupt was to be employed. The present clause gives this power to the trustee, "with the permission of the committee of inspection." Lastly, the power conferred upon the court to reduce an allowance is new.

+ Clause 45 of the Act of 1869 did not contain the words "in full," nor the words "with interest as by this act provided." Provision was, however, made under that act for the payment of interest on debts provable in bankruptcy by clause 36 and G. R. 77. The effect of the present clause is that before the bankrupt can receive any surplus the creditors must be paid in full, with interest on their debts, in accordance with the provisions of clause 40, which, see ante.

PART IV.*

OFFICIAL RECEIVERS AND STAFF OF BOARD OF TRADE.

66. Appointment by Board of Trade of Official Receivers of Debtors' Estales.—(1.) The Board of Trade may, at any time after the passing of this Act, and from time to time, appoint such persons as they think fit to be official receivers of debtors' estates, and may remove any person so appointed from such office. The official receivers of debtors' estates shall act under the general authority and directions of the Board of Trade, but shall also be officers of the courts to which they are respectively attached.

(2.) The number of official receivers so to be appointed, and the districts to be assigned to them, shall be fixed by the Board of Trade, with the concurrence of the Treasury. One person only shall be appointed for each district unless the Board of Trade, with the concurrence of the Treasury, shall otherwise direct; but the same person may, with the like concurrence, be appointed to act for more than one district.

(3.) Where more than one official receiver is attached to the Court, such one of them as is for the time being appointed by the Court for any particular estate shall be the official receiver for the purposes of that estate. The Court shall distribute the receiverships of the particular estates among the official receivers in the prescribed manner.

*This part of the act is entirely new. The administrative details requisite to give effect to it will, of course, be supplied by the general rules to be framed under the act. Until they appear detailed comment upon the provisions of this part of the act would be largely speculative, and, therefore, not very useful.

67. Deputy for Official Receiver.-(1.) The Board of Trade may from time to time by order direct that any of its officers mentioned in the order shall be capable of discharging the duties of any official receiver during any temporary vacancy in the office, or during the temporary absence of any official receiver through illness or otherwise.

(2.) The Board of Trade may, on the application of an official receiver, at any time by order nominate some fit person to be his deputy, and to act for him for such time not exceeding two months as the order may fix, and under such conditions as to remuneration and otherwise as may be prescribed.

68. Status of Official Receiver.-(1.) The duties of the official receiver shall have relation both to the conduct of the debtor and to the administration of his estate.

(2.) An official receiver may, for the purpose of affidavits, verifying proofs, petitions, or other proceedings under this Act, administer oaths.

(3.) All expressions referring to the trustee under a bankruptcy shall, unless the context otherwise requires or the Act otherwise provides, include the official receiver when acting as trustee.*

(4.) The trustee shall supply the official receiver with such information, and give him such access to, and facilities for inspecting the bankrupt's books and documents, and generally shall give him such aid as may

*See ante, clause 21 and the note thereon, as to the appointment of the trustee; the power of the creditors to appoint the official receiver trustee; and as to the power of the Board of Trade to appoint the official receiver trustee, in default of appointment of trustee by the creditors. For other cases in which the official receiver is to act, or may act as trus'ce, see clauses 54, 70, 82, 87, 121, and 125.