History of the government of the island of Newfoundland / With an appendix containing the Acts of Parliament made respecting the trade and fishery

by John Reeves

When goods are attached, if it shall appear that the party is insolvent, the court shall order his effects to be collected and distributed.

6. And whereas it will greatly contribute to the advancement of the trade and fishery of Newfoundland, if such effects as persons becoming insolvent in the said island of Newfoundland, and the islands aforesaid, were possessed of or entitled unto, within the said island, or on the islands or seas aforesaid, or on the banks of Newfoundland, should be divided among their creditors with more equality than hath hitherto been practised; be it further enacted, That, as often as the goods, debts, and credits of any person shall be attached, and it shall be made appear to the court out of which the process of attachment hath issued, that the goods, debts, and credits so attached are not sufficient to pay twenty shillings in the pound to all those who shall be creditors by reason of debts contracted within the island of Newfoundland, and on the islands and seas aforesaid, or on the banks of Newfoundland, it shall be lawful for such court to summon the party whose goods, debts, and credits are so attached, together with the plaintiff or plaintiffs who have sued out any attachment, and also such persons who are known to be creditors as aforesaid of the defendant, to appear in court at a certain day, and if upon a due examination of the defendant, and the said creditors, it shall appear that he or she is insolvent, the court shall declare him or her insolvent accordingly, and shall immediately proceed to take order for discovering, collecting, and selling the effects and debts of such person, and distributing the produce thereof rateably amongst all the said creditors of such person so declared insolvent, or to authorize some person or persons, being a creditor or creditors, to perform the same, such person or persons first entering into a recognizance in such sum as the court shall think fit, for the due performance of his or their duty therein; and that such court shall from time to time make such order therein as shall be deemed proper, for better discovering, collecting, and selling the effects and debts, and making a rateable distribution thereof among the said creditors.

Directions for the distribution of the effects of insolvent persons.

7. And be it further enacted, That in the distribution to be made of the estate and effects of such person so declared insolvent, every fisherman and seaman employed in the fishery, who shall be a creditor for wages become due in the then current season, shall first be paid twenty shillings in the pound, so far as the effects will go; and in the next place, every person who shall be a creditor for supplies furnished in the current season, shall be paid twenty shillings in the pound; and lastly, the said creditors for supplies furnished in the then current season, and all other creditors whatsoever, shall be paid equally in proportion, as far as the effects will go, provided that the said creditors for supplies furnished in the then current season shall not be paid more than twenty shillings in the pound on the whole of their debt.

Certificate of the court to be a bar to suit for debt prior to the declaration of insolvency.

8. And be it further enacted, That if such insolvent person shall make a true disclosure and discovery of all his or her goods and effects whatsoever, and shall conform him or herself to the order and direction of the said court, the same shall and may (with the consent of one half in number and value of his or her creditors) be certified by the said court, and such certificate, when pleaded, shall be a bar to all suits and complaints for debts contracted within the island of Newfoundland, and on the islands and seas aforesaid, and on the banks of Newfoundland, prior to the time when he or she was declared insolvent.

Suits, where the cause shall arise before Aug. 1, 1792, to be commenced within six years.

9. And be it further enacted, That where any cause of action shall have arisen before the first day of August one thousand seven hundred and ninety-two, no suit or complaint shall be commenced thereon at the distance of more than six years from the time when such cause of action arose.

10. And be it further enacted, That the said chief justice, or any person or persons appointed by him for that purpose, under his hand and seal, shall have power to grant administration of the effects of intestates, and the probate of wills; and that the effects of deceased persons shall not be administered within the island of Newfoundland, or on the islands and seas aforesaid; or on the banks of Newfoundland, unless administration thereof, or probate of wills respecting the same, shall have been duly granted by such authority as aforesaid.