As used in this article, unless the context otherwise requires:
"Person" means individuals, partnerships, associations, and corporations.
"Property" means all goods, chattels and effects, real, personal and mixed property,money, rights and credits, and choses in action except property which is by law not subject to levy and sale under execution.
Source: L. 1897: p. 94, § 1. R.S. 08: § 174. C.L. § 6241. CSA: C. 12, § 1. CRS 53: § 11-1-1. C.R.S. 1963: § 11-1-1.
General assignment. Any person may make a general assignment for the benefit of his creditors by deed duly acknowledged. When filed for record in the office of the clerk and recorder of the county where the assignor resides or, if a nonresident, where his principal place of business is in this state, such deed shall vest in the assignee in trust for the use and benefit of such creditors all the property of the assignor, excepting only such as is by law not subject to levy and sale under execution, subject, however, to all valid and subsisting liens.
Source: L. 1897: p. 94, § 2. R.S. 08: § 175. C.L. § 6242. CSA: C. 12, § 2. CRS 53: § 11-1-2. C.R.S. 1963: § 11-1-2.
Inventory - list of creditors. The assignor shall render to such assignee within four days from the date of said assignment an inventory under oath, of his property, to the best of his knowledge, with the estimated value thereof, and also a list of his creditors, giving their names, residence and post-office address, if known, and the amount of their respective demands. Such inventory shall not be conclusive of the amount of the assignor's estate nor shall the omission of any property from such inventory defeat the assignment or conveyance of the same.
Source: L. 1897: p. 94, § 3. R.S. 08: § 176. C.L. § 6243. CSA: C. 12, § 3. CRS 53: § 11-1-3. C.R.S. 1963: § 11-1-3.
Assignment for all creditors. No such deed of general assignment of property by an insolvent, or in contemplation of insolvency, for the benefit of creditors, shall be valid, unless by its terms it is made for the benefit of all his creditors in proportion to the amount of their respective claims.
Source: L. 1897: p. 95, § 4. R.S. 08: § 177. C.L. § 6244. CSA: C. 12, § 4. CRS 53: § 11-1-4. C.R.S. 1963: § 11-1-4.
Assent of creditors presumed. When an assignment of property for the benefit of all the creditors of the assignor is made, the assent of the creditors shall be presumed.
Source: L. 1897: p. 95, § 5. R.S. 08: § 178. C.L. § 6245. CSA: C. 12, § 5. CRS 53: § 11-1-5. C.R.S. 1963: § 11-1-5.
Inventory filed where - bond. The assignee shall file with the clerk of the district court of the county in which such deed of assignment is recorded a true and complete inventory and valuation of the property of the said assignor, under oath, so far as the same has come to his knowledge, within a period not to exceed six days from the date of the filing of the deed of assignment; and shall make and file a bond to the state of Colorado, for the use of the creditors in double the amount of the inventory and valuation, with sureties to be approved by such clerk for the faithful performance of said trust and for a full and complete accounting for and of all property that may come into his hands as such assignee. Such assignee has no authority to sell or dispose of, or convert to the purposes of the trust any part of such estate, until he has complied with the provisions of this section.
Source: L. 1897: p. 95, § 6. R.S. 08: § 179. C.L. § 6246. CSA: C. 12, § 6. CRS 53: § 11-1-6. C.R.S. 1963: § 11-1-6. L. 64: p. 206, § 8.
Assignee an officer of court. An assignee named and qualified under this article shall be deemed to be an officer of court. Any interference with the assignee in the discharge of his duties is contempt of court, and no suit against the assignee in relation to or concerning the property assigned shall be instituted against the assignee without first obtaining permission of the court within and for the county in which the assignment is made.
Source: L. 1897: p. 95, § 7. R.S. 08: § 180. C.L. § 6247. CSA: C. 12, § 7. CRS 53: § 11-1-7. C.R.S. 1963: § 11-1-7.
Notice of assignment of realty. Where real property or any interest therein is by deed conveyed to the assignee, the assignee shall forthwith file with the clerk and recorder of each county where the real estate is situated a notice of the assignment, containing the names of the assignor and assignee, the date of the deed of assignment, when and where recorded, and a description of the property in that county affected thereby, and the same shall be constructive notice to a purchaser or encumbrancer of the transfer of the property in said county, described in such notice.
Source: L. 1897: p. 96, § 8. R.S. 08: § 181. C.L. § 6248. CSA: C. 12, § 8. CRS 53: § 11-1-8. C.R.S. 1963: § 11-1-8.
Priority of claims - notice. The assignee shall forthwith give notice of such assignment by publication for four weeks in some newspaper in the county, if any, and if none, then in the nearest county thereto. The assignee shall also forthwith send a notice by mail to each creditor of whom he shall be informed, directed to his usual place of residence, stating the estimate of the aggregate value of all the property of the assignor, the estimate of the amount of his liabilities, and notifying each creditor to present his claim, under oath, to the assignee within three months from the mailing of such notice. It is the duty of each creditor to present his claim in the manner and within the time mentioned in the notice. Claims filed within the first three months shall have priority over those filed thereafter, unless a creditor can show, to the satisfaction of the court, that he never received the notice. Proof of notice by mail shall be made by affidavit by the assignee giving a list of creditors and the name of the post office where notice was sent within ten days after the mailing of the same. Proof of the notice by publication shall be made by affidavit of the printer or publisher within ten days after the last publication or no fees shall be allowed the assignee for such notice by mail or publication.
Source: L. 1897: p. 96, § 9. R.S. 08: § 182. C.L. § 6249. CSA: C. 12, § 9. CRS 53: § 11-1-9. C.R.S. 1963: § 11-1-9.
Cross references: For clarification of publication terms, see § 24-70-106.
Report of assignee. At the expiration of three months from the time of the first publication and the mailing of notice, the assignee shall report and file with the clerk of the court a true and complete list, under oath, of all the creditors of the assignor who have filed their claims, the place of their residence, the amount claimed, and the amount and value, if any, of any security held by any such creditor. He shall also file a statement of all his proceedings with reference to the trust, showing what money has come into his hands and all the disbursements thereof.
Source: L. 1897: p. 97, § 10. R.S. 08: § 183. C.L. § 6250. CSA: C. 12, § 10. CRS 53: § 11-1-10. C.R.S. 1963: § 11-1-10.
Exceptions to claims - hearing. Any person interested may appear before a dividend is made and file with the clerk any exceptions to the claim or demand of any creditor. The clerk shall immediately cause notice thereof to be given to the creditor which shall be served and returned as in the case of a summons. Within the time allowed to answer in an action at law, the creditor shall file his reply. The court shall designate the time for the hearing, and shall at such time hear the allegations and proof offered and shall render a just judgment thereon.
Source: L. 1897: p. 97, § 11. R.S. 08: § 184. C.L. § 6251. CSA: C. 12, § 11. CRS 53: § 11-1-11. C.R.S. 1963: § 11-1-11.
Judgment - fee of assignee. If no exception is made to a claim filed or if the claim has been favorably adjudicated, the court shall enter judgment in favor of the creditor and against the assignor for the amount claimed and found due, and order the assignee to make from time to time fair and equal dividends among the creditors, of the assets in his hands, in proportion to their respective claims, and as soon as may be, to render a full account of said trust to the court. The court may allow such compensation or commissions, following as nearly as possible the compensation allowed executors for like services, as may be just and right.
Source: L. 1897: p. 97, § 12. R.S. 08: § 185. C.L. § 6252. CSA: C. 12, § 12. CRS 53: § 11-1-12. C.R.S. 1963: § 11-1-12.
Application of unclaimed dividends. The dividends of any unsettled assignment which remain unclaimed for such time as specified in this article after the final dividend has been decided, upon the application of one or more creditors of such assignor, shall be paid by the assignee under direction of the court to the known creditors of the assignor after giving notice to the creditors that a final distribution of all unclaimed dividends is to be made.
Source: L. 05: p. 155, § 1. R.S. 08: § 186. C.L. § 6253. CSA: C. 12, § 13. CRS 53: § 11-1-13. C.R.S. 1963: § 11-1-13.
Notice of distribution. Such notice shall be by advertisement in two or more local newspapers of general circulation and by written or printed notices mailed to the latest address of each creditor. The notice shall state that upon a certain day, not less than three months from the date of the notice, a final distribution of all the unclaimed dividends will be made to all creditors as can be found who have filed their respective claims with the assignee within the time specified by the notice for the filing of such claims. When the time for filing these claims has expired, the court, after deducting expenses of distribution, shall order the amount of the unclaimed dividends to be distributed pro rata among those creditors who have filed their claims for a share in the distribution of any unclaimed dividends in accordance with the provisions of this article.
Source: L. 05: p. 155, § 1. R.S. 08: § 187. C.L. § 6254. CSA: C. 12, § 12B. CRS 53: § 11-1-14. C.R.S. 1963: § 11-1-14.
Distribution of unclaimed dividends. Dividends remaining unclaimed for one year or longer after the final dividend has been declared by any assignee shall be distributed, under direction of the court, to the creditors whose claims have not been paid in full as provided in this article. If more than enough funds are on hand to pay these creditors in full, the balance shall be paid to the assignor.
Source: L. 05: p. 156, § 1. R.S. 08: § 188. C.L. § 6255. CSA: C. 12, § 12C. CRS 53: § 11-1-15. C.R.S. 1963: § 11-1-15.
Assignee under supervision of court. The assignee shall be subject to the order and supervision of the court at all times, and, by citation or attachment, may be compelled, from time to time, to file reports of his proceedings and the situation and condition of the trust and to proceed in the faithful execution of the duties required by this article, to keep correct books of account open to the inspection of the court or any person or his attorney interested in said estate. All conveyances of real estate and all sales of personal property by the assignee, not in the usual course of business, as conducted by the assignor, shall be approved by the court before such sale shall be valid.
Source: L. 1897: p. 98, § 13. R.S. 08: § 189. C.L. § 6256. CSA: C. 12, § 16. CRS 53: § 11-1-16. C.R.S. 1963: § 11-1-16.
Assignee appointed by court - when. If the assignee named in the deed fails or neglects to file an inventory and valuation and give bond for the period of ten days after the making of any assignment, or if he dies before the closing of his trust, or is removed from the execution of the trust, the court upon the application of any person interested may appoint an assignee to execute such trust. Such appointee, when he has qualified as provided in this article, shall have all the rights, powers, and authority and be subject to the same restrictions and obligations as an original assignee.
Source: L. 1897: p. 98, § 14. R.S. 08: § 190. C.L. § 6257. CSA: C. 12, § 17. CRS 53: § 11-1-17. C.R.S. 1963: § 11-1-17.
Removal of assignee by court. The court may remove the assignee for neglect in the execution of the trust, for fraud, for misapplying the trust, or wasting the estate, for failure to comply with the provisions of this article, or to obey the orders of, or to submit to the supervision of the court, or for any other good cause shown. The assignee may also be removed upon the petition of the majority in number and value of the creditors, unless the court is satisfied that such removal would not be for the best interest of the trust estate.
Source: L. 1897: p. 98, § 15. R.S. 08: § 191. C.L. § 6258. CSA: C. 12, § 18. CRS 53: § 11-1-18. C.R.S. 1963: § 11-1-18.
Powers of assignee. The assignee has all the rights, power, and authority of the assignor necessary to fully execute such trust, to demand and sue for any property belonging to such estate, and to execute valid receipts; and, by deed duly acknowledged by him, in his own name as assignee, may convey any of the estate, real and personal, subject to approval as stated in section 6-10-116. Where the assignee has been appointed by the court in place of an assignee removed, it shall be his duty to compel by suit, or the peremptory order of the court, the delivery of the trust estate and the property, or the value thereof, that has been wasted or misapplied by the previous assignee.
Source: L. 1897: p. 98, § 16. R.S. 08: § 192. C.L. § 6259. CSA: C. 12, § 19. CRS 53: § 11-1-19. C.R.S. 1963: § 11-1-19.
Insufficient sureties. If it is shown to the court at any time that the sureties on the assignee's bond are not sufficient, the court may order sufficient sureties to be given, and may compel obedience thereto by removal or otherwise.
Source: L. 1897: p. 99, § 17. R.S. 08: § 193. C.L. § 6260. CSA: C. 12, § 20. CRS 53: § 11-1-20. C.R.S. 1963: § 11-1-20.
Additional security - when. The assignee, from time to time, shall file with the clerk of the court an inventory and valuation of any additional property which may come into his hands after the first inventory; and the judge, or, in his absence, the clerk, may thereupon require the assignee to give additional security.
Source: L. 1897: p. 99, § 18. R.S. 08: § 194. C.L. § 6261. CSA: C. 12, § 21. CRS 53: § 11-1-21. C.R.S. 1963: § 11-1-21.
Appearance compelled - when. The court, upon the application of the assignee, or of any creditor, may compel the appearance in person of the debtor, or any other witness, before the court, or a commissioner appointed by the court, at any time designated, to answer under oath such matters as may be inquired of him. Such debtor or other witness may then be fully examined under oath as to the amount and situation of his property, the payments and conveyances made by him, and the names and places of residence of creditors and the amounts due to each. The court, upon like application, may compel the debtor to deliver to the assignee any property or estate embraced in the assignment.
Source: L. 1897: p. 99, § 19. R.S. 08: § 195. C.L. § 6262. CSA: C. 12, § 22. CRS 53: § 11-1-22. C.R.S. 1963: § 11-1-22.
Misappropriation by debtor. No assignment shall be invalid because of misappropriation of the property of the debtor by him prior to the assignment, but the assignee may recover such property, if so misappropriated in fraud of this article. Nothing in this article shall invalidate any conveyance or mortgage of property, real or personal, by the debtor before the assignment, made in good faith, for a valid and valuable consideration.
Source: L. 1897: p. 100, § 20. R.S. 08: § 196. C.L. § 6263. CSA: C. 12, § 23. CRS 53: § 11-1-23. C.R.S. 1963: § 11-1-23.
Debts not due - interest. Debts not due may be claimed, but if the same are not bearing interest, a suitable rebate shall be made. Interest shall be computed to the date of the assignment and not afterwards.
Source: L. 1897: p. 100, § 21. R.S. 08: § 197. C.L. § 6264. CSA: C. 12, § 24. CRS 53: § 11-1-24. C.R.S. 1963: § 11-1-24.
Creditors may appoint an attorney. The majority in number and value of the creditors may appoint, in writing, an attorney-at-law to represent the estate before the court. The attorney, if appointed, shall examine all reports and inventories and books of the assignee and inquire fully as to the conduct of the assignee in the discharge of his trust. He may appear for the assignee in all suits in behalf of the assignee in securing, preserving, or defending the estate, but shall appear in behalf of the creditors in all suits, examinations, or inquiries as to the accounts or the conduct of the assignee concerning the estate. The court may allow such compensation to the attorney as may be just and reasonable.
Source: L. 1897: p. 100, § 22. R.S. 08: § 198. C.L. § 6265. CSA: C. 12, § 25. CRS 53: § 11-1-25. C.R.S. 1963: § 11-1-25.
Waiver of proceedings by parties. At any time after an assignment has been made, the assignor, the creditors, and the assignee of such assignor may agree in writing that all proceedings to be had before the court under the provisions of this article, may be waived. Upon the filing of such agreement with the clerk of the proper court, the court shall cease to have any further jurisdiction over such assignment and the proceedings thereunder, and the assignee shall no longer be held accountable to the court. The creditors and the assignee, with the consent of the assignor, in writing, may make such disposition of the assigned estate and arrangements in reference thereto as to them shall seem proper in the premises.
Source: L. 1897: p. 100, § 23. R.S. 08: § 199. C.L. § 6266. CSA: C. 12, § 12. CRS 53:
§ 11-1-26. C.R.S. 1963: § 11-1-26.