D —No G.

« Proposed Bill. Clause 2 therefore provides that upon the acceptance of a petition, the Judge, in addition to appointing a day for hearing, shall make an order for the sequestration of the estate in tho hands of the Inspector. Clause 8 describes the effect of such order upon the estate of the debtor, viz., vesting the same in the Inspector as fully as is described iv section S of the Amendment Act, 1865, until the appointment of trustees. Clauses 3, 4, and 5 provide what shall be the procedure upon the order for sequestration, viz., Ist. The order is to be lodged and registered with the Sheriff, and delivered to the Inspector, who shall notify the same in the Gazette. 2nd. The* Inspector shall immediately, under warrant to his messenger, seize and attach the estate of the debtor ; and the mode of attaching moveable property is described. Clause 6 enjoins the Inspector to aid and assist in carrying the law into effect. Clause 7 provides that the Sheriff and his deputies shall perform the duties of messenger. Clause 0 provides that all judgments against debtor be stayed, and where any property may have been attached by Sheriff by virtue of any judgment and not sold, such -property shall be placed under sequestration and the creditor left to prove his claim for debt and costs with general body of creditors. Clause 10 stays all actions against debtor. Plaintiff to prove his debt and costs as above. Clause 11 entitles debtor in custody to be discharged. Clause 12 stays actions wherein debtor is plaintiff until trustees are appointed, whereupon trustees shall elect to prosecute or discontinue proceedings within a limited time, or be deemed to have abandoned the action. Provisos to Clauses 10 and 12 limit the operation of these clauses with regard to certain actions. Clause 13 provides that the Inspector shall appoint two public meetings of creditors for proof of debt and election of trustees. Clause 15 that these meetings be held before Inspector. Clause 16 that the meetings shall be conducted in accordance with rules of Supreme Court. Clauses 18 and 19 provide how proofs of debt are to be made and admitted. Clause 20 provides that no person shall be elected trustee without his previous consent. Clause 21 provides that trustees so elected to be confirmed by Supreme Court. If no election, Inspector to nominate a trustee. Clause 17 obliges the debtor to submit himself to such meetings for examination by creditors, to account for his insolvency, and to deliver an inventory of his property, and hand over all his books and papers. Clause 13 provides in certain cases that Inspector may proceed summarily to the winding up of estate. Clause 22 describes the effect of the confirmation of trustees. ll.—as to the accounts of trustees and distribution of assets. No direction is given in tho present law (Acts 1862, 1865) as to the rendering accounts. Proposed Bill. Clause 23 provides that within a limited period the trustees shall lodge with the Inspector a full account of the estate, and a plan of distribution. Clause 24. "Which shall Ho open for inspection by creditors for a time, to be notified by advertisement. Clause 25. During which any person aggrieved thereby may object. Clause 26. Proceedings before Court on objections. Clause 27. Confirmation of accounts and plan of distribution, and effect thereof. Clause 28. "Whereupon trustees to distribute dividends. 111. AS TO FINAL ACCOUNTS OF TRUSTEES AND DISPOSAL OF UNCLAIMED DIVIDENDS. Clause 29. The Court to limit time for filing a final account. Dividends then unclaimed to bo paid into Treasury, to be thereafter paid by order of Court. Clause 30. Penalty for non-compliance. IV. —AS TO FINAL DISCHARGE OF Clause 31. Inspector to report to Supreme Court as to debtor's conduct before final order of discharge. 'Y. PENAL CLAUSES. Clauses 32, 33, and 34. No. 25. Copy of a Letter from Mr. G. Brodie tg the Hon. E. "W. Stafford. Office of the Inspector in Bankruptcy, Otago, Sir, — Victoria Chambers, Manse Street, Dunedin, 11th June, 1866. Ecferring to my letter addressed to you of the number and date quoted in the margin, (No. 69, 6th June, 1806) and containing an analysis of the proposed Bill to amend " The Debtors and Creditors Act, 1862," and " Amendment Act, 1865," I find that I have omitted to make a provision for the finding of unclaimed dividends, the interest derivable therefrom being applied in payment of the expenses of the working of the Act. I have therefore to suggest that a clause embodying this principle be inserted. I have, &c, The Hon. the Colonial Secretary, Geo. Brodie, (Judicial Branch,) "Wellington. Inspector in Bankruptcy.

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