§ 19 — Sale and compromise of claims and property

New York § 19

• Jurisdiction: New York
• Law DCD: Debtor & Creditor
• Art. 2: General Assignments For the Benefit of Creditors

Text

§ 19. Sale and compromise of claims and property. The judge may, upon\nthe application of the assignee and for good and sufficient cause shown,\nand upon such terms as he may direct, authorize the assignee to sell,\ncompromise or compound any claim or debt belonging to the estate of the\ndebtor. But such authority shall not prevent any party interested in the\ntrust estate from showing upon the final accounting of such assignee\nthat such debt or claim was fraudulently or negligently sold, compounded\nor compromised. The sale of any debt or claim heretofore made in good\nfaith by any assignee shall be valid, subject, however, to the approval\nof the judge, and the assignee shall be charged with and be liable for,\nas part of the trust fund, any sum which might or ought to have been\ncollected by him.\n All sales shall be had at public auction unless otherwise ordered by\nthe judge. Upon application to the judge, and for good cause shown, the\nassignee may be authorized to sell any portion of the estate at private\nsale; in which case he shall keep an accurate record of each article\nsold, and the price received therefor, and to whom sold; which account\nhe shall file at once. Upon application by the assignee or a creditor\nsetting forth that a part or the whole of the estate is perishable, the\nnature and location of such perishable property, and that there will be\nloss if the same is not sold immediately, the judge, if satisfied of the\nfacts stated and that the sale is required in the interest of the\nestate, may order the same to be sold with or without notice to\ncreditors.\n