liabilities and obligations as the bankrupt was subject to under the lease in respect of the property at the date when the bankruptcy petition was filed: and any mortgagee or under-lessee declining to accept a vesting order upon such terms shall be excluded from all interest in and security upon the property; and if there shall be no person claiming under the bankrupt who is willing to accept an order upon such terms, the Court shall have power to vest the bankrupt's estate and interest in the property in any other person liable, either personally or in a representative character, and either alone or jointly with the bankrupt, to perform the lessee's covenants in such lease, freed and discharged from all estates, incumbrances, and interests created therein by the bankrupt." Any person injured by a disclaimer will be deemed to be a creditor to the extent of the injury.

Declaration of Dividends. Subject to the retention of such sums as may be necessary for the costs of administration or otherwise, the trustee must from time to time declare and distribute a dividend amongst those creditors of the bankrupt who have proved their debts.

The first dividend (if any) shall be declared and distributed within four months after the conclusion of

the first meeting of creditors; unless the committee of inspection are satisfied by the trustee that such declaration should be postponed. Subsequent dividends shall, unless sufficient reason is shown to the contrary, be declared and distributed at intervals of not more than six months.

Before declaring a dividend the trustee must cause notice of his intention to do so to be gazetted; and also send a notice to each creditor mentioned in the bankrupt's statement who has not proved his debt. After a dividend has been declared, a notice showing the amount of the dividend, and when and how it is payable, together with a statement of the particulars of the estate, shall be sent by the trustee to every creditor who has proved (sect. 58).

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 must also make provision for any disputed proofs or claims, and, as has been stated, for the expenses necessary for the administration of the estate or otherwise; but subject to these provisions he will distribute as dividend all money in hand (sect. 60).

If any creditor has not proved his debt before the declaration of any dividend or dividends he shall be entitled to be paid out of any money for the time being in the hands of the trustee any dividends he may have

failed to receive, before that money is applied to the payment of any future dividend. But such creditor will not be entitled to disturb the distribution of any dividend declared before his debt was proved by reason that he has not participated therein (sect. 61).

Provision is also made for the proper disposal of any unclaimed funds or dividends which may be left in the hands of a trustee by sect. 162 of the Act.

Joint and Separate Dividends. If one partner of a firm is adjudged bankrupt, a creditor to whom the bankrupt is indebted jointly with the other partners of the firm, or any of them, shall not receive any dividend out of the separate property of the bankrupt until all the separate creditors have received the full amount of their respective debts. And where joint and separate properties are being administered, dividends of the joint and separate properties shall, subject to any order to the contrary that the Court may make on the application of any person interested, be declared together; and the expenses incident to such dividends shall be fairly apportioned by the trustee between the joint and separate properties, regard being had to the work done for and the benefit received by each property (sect. 59).

Final Dividend. When the trustee has realized all the property of the bankrupt, or so much of it as can, in the joint opinion of himself and of the committee of inspection, be realized without needlessly protracting the trusteeship, a final dividend shall be declared.

Before doing so, however, a trustee shall give notice to those 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 satisfac

tion 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 has extended such time, then on the expiration of such further time, the property of the bankrupt shall be divided amongst the creditors who have proved their debts, without regard to the claims of any other persons (sect. 62).

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 (sect. 63).

A power is given by sect. 64 of the Act to the trustee, with the permission of the committee of inspection, to allow the bankrupt to superintend the management of, or carry on the trade, or otherwise to aid in the administration of the property, and to make him an allowance for maintenance or service (see post, p. 89).

Surplus. After payment in full of the creditors with interest as provided at the rate of 4 per cent. per annum (see post, p. 67), and of the costs, charges, and expenses of the proceedings under the bankruptcy petition, the bankrupt shall be entitled to any surplus which may remain (sect. 65).

ON several occasions throughout the previous pages the provisions contained in the Act relating to Trustees in Bankruptcy have been referred to. On p. 39, ante, it has been already shown that upon an adjudication of bankruptcy taking place the property of the bankrupt shall become divisible among his creditors, and shall vest in a trustee. This must be some fit person, whether a creditor or not, other than the official receiver, appointed by ordinary resolution of the creditors, or by the committee of inspection, or in default by the Board of Trade; and the person so appointed must give security to the satisfaction of the Board of Trade, which shall also, if satisfied with the security, certify the appointment. Power is reserved, however, to the