Property Exempt from Disposition for the Benefit of Creditors

Merchandise, effects, and any other kind of property found among the property of the insolvent, the ownership of which has not been conveyed to him by a legal and irrevocable title, shall be considered to be the property of other persons and shall be placed at the disposal of its lawful owners on order of the court made at the hearing mentioned in § 50213, or at any ordinary hearing, if the assignee or any creditor whose right in the estate of the insolvent has been established shall petition in writing for such hearing and the court in its discretion shall so order, the creditors, however, retaining such rights in said property as belong to the insolvent, and subrogating him whenever they shall have complied with all obligations concerning said property. The following shall be included in this section: 1. All the separate property of the wife, owned by her before marriage, and that acquired afterwards by gift, bequest, devise, or descent, with the rents, issues and profits thereof, as provided in 19 GCA §§ 6111 - 6114. 2. Property and effects deposited with the insolvent, or administered, leased, rented, or held in trust by him. 3. Merchandise in the possession of the insolvent, on commission, for purchase, sale, forwarding, or delivery. 4. Bills of exchange or promissory notes without endorsement or other expression transferring ownership remitted to the insolvent for collection and all others acquired by him for the account of another person, drawn, or endorsed to the remittor direct. 5. Money remitted to the insolvent, otherwise than on current account, and which is in his possession for delivery to a definite person COL120106 CH. 50 INSOLVENCY LAW in the name and for the account of the remitter or for the settlement of claims which are to be met at the insolvent's domicile. 6. Amounts due the insolvent for sales of merchandise on commission, and bills of exchange and promissory notes derived therefrom in his possession, even when the same are not made payable to the owner of the merchandise sold, provided it is proven that the obligation to the insolvent is derived therefrom and that said bills of exchange and promissory notes were in the possession of the insolvent for account of the owner of the merchandise to be cashed and remitted, in due time, to the said owner; all of which shall be a legal presumption when the amount involved in any such sale shall not have been credited on the books of both the owner of the merchandise and of the insolvent. 7. Merchandise bought on credit by the insolvent so long as the actual delivery thereof has not been made to him at his store or at any other place stipulated for such delivery, and merchandise the bills of lading or shipping receipts of which have been sent him after the same has been loaded by order of the purchaser and for his account and risk. In all cases arising under this section assignees may retain the merchandise so purchased or claim it for the creditors by paying the price thereof to the vendor. 8. Goods or chattels wrongfully taken, converted, or withheld by the insolvent if still existing in his possession or the amount of the value thereof.