fected by the agreement unless they may have expressly or impliedly consented thereto. [Enacted 1953.]

§ 1294. Objections to meetings of creditors. The causes for which objection may be made to the decision of the meeting shall be:

(a) Defects in the call for the meeting, in the holding thereof, and in the deliberations had thereat which prejudice the rights of the creditors;

(b) Fraudulent connivance between one or more creditors and the debtor to vote in favor of the proposed agreement;

(c) Fraudulent conveyance of claims for the purpose of obtaining a majority. [Enacted 1953.]

§ 1295. Failure of debtor to perform agreement. If the debtor fails wholly or in part to perform the agreement decided upon at the meeting of the creditors, all the rights which the creditors had against the debtor before the agreement shall revest in them. In such case the debtor may be made subject to the bankruptcy and insolvency proceedings in the manner established by the following Chapters of this Title. [Enacted 1953.]

§ 1300. Petition for voluntary insolvency. An insolvent debtor, owing debts exceeding in amount the sum of one thousand dollars ($1,000.00), may apply to be discharged from his debts and liabilities by petition to the Island Court, Guam. In his petition he shall set forth his place of residence, the period of his residence therein immediately prior to filing said petition, his inability to pay all his debts in full, his willingness to surrender all his property, estate, and effects not exempt from execution for the benefit of his creditors, and an application to be adjudged an insolvent. He shall annex to his petition a schedule and inventory in the form hereinafter provided. The filing of such petition shall be an act of insolvency. [Enacted 1953.]

§ 1301. Schedule, what to include. Said schedule must contain a full and true statement of all his debts and liabilities, together with a list of all those to whom, to the best of his knowledge and belief, said debts or liabilities are due, the places of residence of his creditors and the sum due each, the nature of the indebtedness or liability and whether founded on written security, obligation, contract or otherwise, the true cause and consideration thereof, the time and place when and where such indebtedness or liability accrued, a declaration of any existing pledge, lien, mortgage, judgment, or other security for the payment of the debt or liability, and an outline of the facts giving rise or which might give rise to a cause of action against such insolvent debtor. [Enacted 1953.]

§ 1302. Inventory, what to include. The inventory must contain, besides the creditors, an accurate description of all the real and personal property, estate, and effects of the petitioner, including his homestead, if any, together with a statement of the value of each item of said property, estate, and effects and its location, and a statement of the encumbrances thereon. All property exempt by law from execution shall be set out in said inventory with a statement of its valuation, location, and the encumbrances thereon, if any. The inventory shall contain an outline of the facts giving rise, or which might give rise, to a right of action in favor of the insolvent debtor. [Enacted 1953.]

§ 1303. Affidavit of petitioner. The petition, schedule, and inventory must be verified by the affidavit of the petitioner, annexed thereto, and shall be in form substantially as follows: do solemnly swear that

་་1,

the schedule and inventory now delivered by me contain a full, correct, and true discovery of all my debts and liabilities and of all goods, effects, estate, and property of whatever kind or class to me in any way belonging. The inventory also contains a full, true, and correct statement of all debts owing or due me, or to any person or persons in trust for me and of all securities and contracts whereby any money may hereafter become due or payable to me or by or through which any benefit or advantage whatever may accrue to me or to my use, or to any other person or persons in trust for me. The schedule contains a clear outline of the facts giving rise, or which might give rise, to any cause of action in my favor. I have no lands, money, stock, or es

tate, reversion, or expectancy, or property of any kind, except that set forth in said inventory. I have in no instance created or acknowledged a debt for a greater sum than I honestly and truly owe. I have not, directly or indirectly, concealed, fraudulently sold, or otherwise fraudulently disposed of any part of my real or personal property, estate, effect, or rights of action, and I have not in any way compounded with any of my creditors in order to secure such creditors, or to receive or to accept any profit or advantage therefrom, or to defraud or deceive in any manner any creditor to whom I am indebted. So help me God." [Enacted 1953.]

§ 1304. Order of court; appointment of a receiver. Upon receiving and filing said petition, schedule, and inventory, the court shall make an order declaring the petitioner insolvent, and directing a commissioner of a district to take possession of, and safely keep, until the appointment of a receiver or assignee, all the deeds, vouchers, books of account, papers, notes, bonds, bills, and securities of the debtor, and all his real and personal property, estate, and effects, except such as may be by law exempt from execution. Said order shall further forbid the payment to the debtor of any debts due to him and the delivery to the debtor, or to any person for him, of any property belonging to him, and the transfer of any property by him, and shall further appoint a time and place for a meeting of the creditors to choose an assignee of the estate. The order shall be published in the manner and form used in Guam for such times and periods as the court may prescribe. The time appointed for the election of an assignee shall not be less than two (2) weeks, nor more than three (3) months, from the date of the order of adjudication. Upon the granting of the order, all civil proceedings pending against the said insolvent shall be stayed. When a receiver is appointed, or an assignee chosen, as provided by this Title, the commissioner shall thereupon deliver to such receiver or assignee, as the case may be, all the property, assets, and belongings of the insolvent which have come into his possession, and he shall be allowed and paid as compensation for his services the same expenses and fees as would by law be collectible if the property had been levied upon and safely kept under attachment. [Enacted 1953.]

§ 1305. Publication of court order. A copy of the court's order shall immediately be published by the clerk of said court, for the number of times and for such periods as prescribed by

the court. A copy of said order shall be delivered personally or sent by the clerk forthwith by registered mail, postage prepaid, to all creditors named in the schedule. There shall be deposited with the clerk of the court the sum of ten dollars ($10.00), which shall be paid into the Guam treasury on commencing such proceedings and, in addition, a sum of money sufficient to defray the expense of the publication ordered by the court, necessary postage, and ten cents ($0.10) for each copy, to be delivered personally or mailed to the creditors. The last-named sum is hereby constituted the legal fee for the personal delivery or mailing required by this section. [Enacted 1953.]

§ 1314.

§ 1315.

§ 1316.

§ 1317.

§ 1318.

Service upon debtor.

Defendant to demur or answer.

Court order, what to include. Stay of proceedings against debtor.
Appointment of an assignee or receiver.

Publication of court order.

Same, when debtor resides out of Guam; undertaking required.
Bonds, conditions; exceptions.

Sale of property; deposit of proceeds.

§ 1310. Acts of insolvency, what constitute. An adjudication of insolvency may be made on the petition of two or more creditors, and the amount of which credits or demands are in the aggregate not less than one thousand dollars ($1,000.00); provided, that none of said creditors has become a creditor by assignment, however made, within thirty (30) days prior to the filing of said petition. Such petition must be filed in the Island Court. The following shall be considered acts of insolvency, and the petition for insolvency shall set forth one or more of such acts:

1. That such person is about to depart or has departed from Guam, with intent to defraud his creditors;

2. That being absent from Guam, with intent to defraud his creditors, he remains absent;

3. That he conceals himself to avoid the service of legal process for the purpose of hindering or delaying or defrauding his creditors;

4. That he conceals, or is removing, any of his property to avoid its being attached or taken on legal process;

5. That he has suffered his property to remain under attachment or legal process for three (3) days for the purpose of hindering or delaying or defrauding his creditors;

6. That he has confessed or offered to allow judgment in favor of any creditor or claimant for the purpose of hindering or delaying or defrauding any creditor or claimant;

7. That he has wilfully suffered judgment to be taken against him by default for the purpose of hindering or delaying or defrauding his creditors;

8. That he has suffered or procured his property to be taken on legal process with intent to give a preference to one or more of his creditors;

9. That he has made any assignment, gift, sale, conveyance, or transfer of his estate, property, rights, or credits with intent to delay, defraud, or hinder his creditors;

10. That he has, in contemplation of insolvency, made any payment, gift, grant, sale, conveyance, or transfer of his estate, property, rights, or credits;

11. That being a merchant or tradesman he has generally defaulted in the payment of his current obligations for a period of thirty (30) days;

12. That for a period of thirty (30) days he has failed, after demand, to pay any moneys deposited with him or received by him in a fiduciary capacity; and,

13. That an execution having been issued against him on final judgment for money, he shall have been found to be without sufficient property subject to execution to satisfy the judgment. The petitioner may, from time to time, by leave of the court, amend and correct the petition, so that the same shall conform to the facts, such amendments to relate back to and be received as embraced in the original petition. [Enacted 1953.]

§ 1310a. Undertaking required. The said petition shall be accompanied by an undertaking, approved by the court, with at least two (2) sureties, in such penal sum as the court shall direct, conditioned that if the petition in insolvency be dismissed by the court, or withdrawn by the petitioner, or if the debtor shall not be declared insolvent, the petitioners will pay to the debtor alleged in the petition to be insolvent, all costs, expenses, and damages occasioned by the proceedings in insolvency, together with a reasonable counsel fee to be fixed by the court. The court may, upon motion, direct the filing of an