LAW ON THE SUPPLY OF GOODS TO CREDITORS, AND AGREED ON THE COMPETITION OF CREDITORS November 15 No 17 Art. 1. - The debtor who wishes to make the sale of its assets to creditors, can appeal with the Court, declare that it intends to precede the to the same proposal for an arrangement with the effect of avoiding, if the creditors are parties to them, the sale. Following this question all debts are considered past due, but do not earn interest during the trial. Art. 2. - The application must be accompanied by a list of names of all creditors with indication of the respective credits and domiciles, and a state detailed movables, real estate and receivables, with rough indication of the value of each take of them. Art. 3. - The Commissioner's Court, with a decree to be issued within 24 hours of submitting the application, even if the day is not legal, Instructs Chancellor commissioner to verify, within a period set by decree and in the manner that the Registrar deems most 'opportune, if the Court does not set them, the assets and liabilities of the debtor, by delegating one or more' people, as appropriate, to the custodians of the assets. also it indicates the necessary alleged sum for the costs to be deposited in the Clerk of the Court. Every alienation, free or onerous, the rear property sold at the opening of the competition is automatically void, and if, a year earlier, is also void the free disposal; and, if costly, ineffective where the alleged fraud damaging the reasons of the creditors, unless the third party did not prove its good faith and that is not exploiting to their advantage the failure of the other Contracting. Art. 4. - In the decree, to be published by posting in the City, Village and parishes, and public notices in newspapers where the Court considers it necessary, and to be registered in the registers mortgage, will be felt the certain and uncertain creditors, whether or not they priority claims on the debtor's property, to produce in the Clerk of the Court their claims within a period of thirty days continuous though not legal, and lasted the term to the next day if the final date the Registrar of the Tribunal is closed in accordance with the calendar judicial. The Court may request the office to each creditor further justification and clarification to the effect of simplifying the procedure. Art. 5. - The Decree also sets itself the day and time that will take place the meeting of creditors in the seat of the Court to decide on the proposed concordat. This meeting can not take place before they are dec RSI another thirty days after the deadline for submission of creditors. Art. 6 - Right after the opening of the trial, the Court appoints a Procurator of the contest, neither lender nor the borrower relative or similar up to the fourth degree inclusively; who, following the more 'accurate surveys on the debtor's conduct, the loyalty of its reflective statement of its assets and liabilities, and on all other circumstances that purpose influential believe, will stretch a report to conclude whether the proposals of the debitor It s not acceptable, whether they should improve, or whether it should instead be made for the judicial liquidation of the property sold. This report must be filed in the Clerk of the Court at least five days before the meeting of creditors. Art. 7. - In the meeting of creditors, headed by the Law Commissioner, each creditor may be represented by a special representative with a proxy that can be written without formalities in a signed letter addressed to the Clerk of the Court. It 'also good to be computed and the vote given by ordinary letter handwritten direct the Commissioner or Chancellor. The debtor must appear in person, and only in case of absolute ground, determined by the Commissioner, may be represented by a special mandatrio. The Prosecutor of the Competition Act the report. The debtor is entitled to request the postponement of the meeting for one time only, in order to improve the conditions of the arrangement, if it believes this will make things easier ch membership of creditors. In which case the Commissioner shall issue, on the spot, u new decree convening the creditors, who is given the publicity of the original Decree. The new date can not be extended beyond the twenty days before. Art. 8. - The agreement must be approved at least by a numerical majority of creditors who have insinuated their claims, which represents at least three-quarters of the total amount of the same, not privileged or not secured by mortgage or lien, and admitted by the Commissioner the vote of the agreed although disputed.
Creditors who have rights of preference, are satisfied with the income of the subject property to their respective priority rights. If they lose the privilege of participating in the vote agreed. The Commissioner will be fixed because the more safeguards and guarantees for the proper performance of the terms of the agreement, illuminating in this regard creditors. Art. 9. - Lacking the majorities in number and amount, is declared by the Commissioner opened the liquidation proceedings of the assets, resulting allacessione made of them by the debtor. Art. 10. - The liquidation of the debtor's property may be ordered ltresì demand of some creditor demonstrating the status of the insolvency of his debtor av nte other creditors; or by the debtor, who are subjected to individual executions and intends, through competition or contribution, to equalize the condition of its creditors. Art. 11. - The Decree, which opens the competition, confirming the Prosecutor of the same or different person appointed; it shall instruct the cursors about the immediate seizure of all assets of the debtor in a deadline to be determined case by case; Instructs the Chancellor to make an inventory of seized assets, excluding those not be attached to the end of Article 49 of the Procedural Law December 10, 1884; establishes a deadline of thirty days from the date of the decree for the presentation in the Chancellery commissioner of the documented claims, whether or not provided with rights of preference with the warning that those not presented, they will feel certainly fallen. In any case, mortgage loans have crept and registered office, without such recognition has any influence of interrupting prescription. Art. 12. - After the period of thirty days, the court will assign another thirty days for the opposition to also officially crept debt securities. Art. 13. - The Tribunal shall decide on the appointment of experts to the valuation of movable property, real estate loans and foreclosed. Sworn expert reports are filed at the Court to act by inspection of all concerned. The opposition of any creditor, or the same debtor, and ex officio, the Tribunal shall adjudicate because the valuation of assets matches the right price or the current thereof. Art. 14. - The opposition proceedings receivables are held with the ordinary procedure. Past the legal deadline and source closed, the Court puts a decree throughout the file to the Prosecutor of the competition for the ranking of creditors. In the list you will have to take into account all the exceptions moves about the claims filed. The deadline for submission of the list is fixed by the Court. Art. 15. - The ranking project remains deposited in the Chancery for thirty days. In this term, so i crept creditors, because the debtor, are entitled to deduct their written objections to the project. Art. 16. - After the period suaccennato, the wrapper is passed by the Registrar to the Commissioner for the decision, which is appealable within a period of ten days from its publication continues. Art. 17. - The public auction is made by means of notices posted in the sun you ways by the Registrar. Each notice must describe the goods auctioned with its price and indicate the place, day and time of sales and to contain all those other signs that are required for the enchantment regularity. The sale can not take place for a price inferior to half the estimated value; otherwise unsold goods are awarded in proportion to the competing creditors for not less than two-thirds of the estimated value. For graduation, and the extinction of privileges and mortgages, the provisions contained in the cap. II, § 1, the second section of the law mortgage 16 March 1854. Art. 18. - In any stage of the liquidation procedure, the debtor is entitled to make a proposal to its creditors agreed. In this cas the rods are suspended, and will proceed according to the provisions of the preceding articles concerning the agreed prior to the sale of assets, insofar as they are applicable. Art. 19. - If the debtor's assets is not available the money needed for the expenses necessary for the procedure established by this law and whose word is in the first line to art. 3, the state anticipates these expenses by order of the Court EPR reimbursement has privilege in the ranking of creditors. If agreed, proponents must first ensure the State reimbursement of expenses advanced. Art. 20. - Each entity of public reason, which can justify that, for extraordinary events,
unforeseen or otherwise excusable, is currently not the condition to meet their commitments, and can prove with documents or with the rendering of appropriate guarantees that the assets of its assets exceed liabilities, may request that the Commissioner's Court it is suspended every act of cognition and execution in its confrontation pel limit which the court deems to set according to the circumstances, and will extend them. The decision of the Court is undoubtedly the executive, but can be appealed. It is published with posting in City and village and also in the newspapers that the Court will determine if, in its wisdom and discretionary criteria, we see fit. Art. 21. - The institution of public reason, which has obtained the moratorium, may elect during the same at a friendly completion with its creditors by means of agreement or other measures it deems necessary. In this case you will have to proceed with the standards laid down in the previous articles pel Front agreed to the sale of assets.