T3d CONGRESS. SESS. I. C S. 868, 869. JUNE 27, 28, 1934.

1289
ingly make any false or fraudulent statement or report required for False statement
the purpose of this Act, or who shall knowingly make or aid in
making any false or fraudulent statement or claim for the purpose
of receiving any award or payment under this Act shall be punished
by a fine of not less than $100 nor more than $10,000 or by impris-
onment not exceeding one year.
SEPARABILITY

SEc. 14. If any provision of this Act, or the application thereof savingclause.
to any person or circumstances, is held invalid, the remainder of
the Act or application of such provision to other persons or cir-
cumstances shall not be affected thereby.
Approved, June 27, 1934.

[CHAPTER 869.]
AN ACT
June 28, 1934.
To amend an Act entitled "An Act to establish a uniform system of bankruptcy Is.3550.1
throughout the United States", approved July 1, 1898, and Acts amendatory [Public, No. 486.]
thereof and supplementary thereto.

Be it enacted by the Senate and House of Representatives of the Bankruptcy; agricul-

United States of America in Congress assembled, That section 75 ofextensions.s and
the Act of July 1, 1898, entitled "An Act to establish asa uniform sys- Ve. 47, p. 1473,
tem of bankruptcy throughout the United States ", amended, is
amended as follows: In section 75, entitled "Agricultural Composi-
tions and Extensions ", after subsection (r) add a new subsection
(s), to read as follows:
"(s) Any farmer failing to obtain the acceptance of a majority in Farmer; petition in
number and amount of all creditors whose claims are affected by a
bankuptcy.
composition or extension proposal, or if he feels aggrieved by the
composition or extension, may amend his petition or answer asking
to be adjudged a bankrupt. Such farmer may, at the time of the first Apprailoiprerty.
hearing, petition the court that all of his property, whether pledged,
encumbered, or unencumbered, by liens or otherwise, be appraised,
and that his exemptions as prescribed by the State law, subject to Exemptions.
any liens thereon, be set aside and that he be allowed to retain posses-
sion of any part or parcel or all of the remainder of his property
and pay for same under the terms and conditions set forth in this
subsection (s).
"(1) Upon such a request being made in the petition or answer, at Appraisers, appoint-
the time of the first hearing, appraisers shall be designated and ment,
appointed. Such appraisers shall appraise all the property of the
debtor at its then fair and reasonable value, not necessarily the
market value at the time of such appraisal. The appraisals shall be
made in all other respects, with right of objections, exceptions, and
appeal, in accordance with this Act: Provided, That in case of real Proiso.
estate either party may file objections, exceptions, and appeals within Filing objections.
one year from date of order approving the appraisal.
"(2) After the value of the debtor's property shall have been fixed debtor-
Exemptions of
order setting
by the appraisal as herein provided, the referee shall issue an order aside.'
setting aside to such debtor his exemptions as prescribed by the State
law, subject to any existing mortgages or liens upon any such exemp-
tions to an amount equal to the value, as fixed by the appraisal, of
the value of such exempt property as is covered by any mortgage or Possession of remain-
lien, and shall further order that the possession, under the control of lug property.
the court, of any part or parcel or all of the remainder of the debtor's
property, shall remain in the debtor subject to a general lien, as
security for the payment of the value thereof to the trustee of the
creditors, if a trustee is appointed, such a lien to be subject to and

HeinOnline -- 48 Stat. 1289 1928-1934

 73d CONGRESS. SESS. II. CH. 869. JUNE 28, 1934.
Prior liens, etc to inferior to all prior liens, pledges, or encumbrances. Such prior
remain effective.
liens, pledges, or encumbrances shall remain in full force and effect,
and the property covered by such prior liens, pledges, or encum-
brances shall be subject to the payment of the claims of the secured
creditors holding such prior liens, pledges, or encumbrances up to
the actual value of such property as fixed by the appraisal provided
Liens on livestocl'. for herein. All liens herein on livestock shall cover all increase, and
all liens on real property shall cover all rental received or crops
grown thereon by the debtor, as security for the payment of any
sum that may be due or past due under the terms and provisions of
the next paragraph, until the full value of any such particular prop-
erty has been paid.
Sale of bankru apt " (3) Upon request of the debtor, and with the consent of the lien
estate to debtor.
holder or lien holders, the trustee, after the order is made setting
aside to the debtor his exemptions, shall agree to sell to the debtor
any part, parcel, or all of the remainder of the bankrupt estate at
the appraised value upon the following terms and conditions, and
upon such other conditions as in the judgment of the trustee shall be
fair and equitable:
Payments. "a. Payment of 1 per centum interest upon the appraised price
within one year from the date of said agreement.
"b. Payment of 21/2 per centum of the appraised price within two
years from the date of said agreement.
"e Payment of an additional 21/ per centum of the appraised
price within three years from the date of said agreement.
"d. Payment of an additional 5 per centum of the appraised price
within four years from the date of said agreement.
"e. Payment of an additional 5 per centum of the appraised price
within five years from the date of said agreement.
"f. Payment of the remaining unpaid balance of the appraised
price within six years from the date of said agreement.
Interest. "Interest shall be paid on the appraised price and unpaid balances
of the appraised price yearly as it accrues at the rate of 1 per centum
per annum and all taxes shall be paid by the debtor.
Proceeds, etc., to
credit of lien holder
" The proceeds of such payments on the appraised price and
interest shall be paid to the lien holders as their interests may
appear, and to the trustee of the unsecured creditors, as their interests
may appear, if a trustee is appointed.
Disposal of prope rty " (4) An agreement having been reached as provided in subsection
by debtor, payme nts (3), the debtor may consume or dispose of any part or parcel or all
required.
of said property whether covered by the general lien to the trustee,
if a trustee is appointed, or subject to pledges or prior liens or
encumbrances held by secured creditors, provided he pays the
appraised value of such part or parcel or all, as the case may be, to
the secured creditors, as their interests may appear, and the trustee
of the unsecured creditors, as his interests may appear, if a trustee
Bond. is appointed, or he may put up a bond approved by the referee in
bankruptcy that he will make payments, as provided for herein, of
any property so consumed or disposed of.
Enforcemen t od "(5) In case the debtor fails to make any payments, as herein
pledge in case of
fault of payment. provided, to any or all of the secured creditors or to the trustee
of the unsecured creditors, then such secured creditors or the trustee
may proceed to enforce their pledge, lien, or encumbrances in accord-
ance with law. It shall be the duty of the secured creditors and of
the trustee of the unsecured creditors to discharge all liens of record
in accordance with law, whenever the debtor has paid the appraised
value of any part, parcel, or all of his property as herein provided.
Discharge upon co M. "(6) Having complied with the provisions of subsection (3), the
pleting obligation.
debtor may apply for his discharge as provided in this Act.

HeinOnline -- 48 Stat. 1290 1928-1934

 73d CONGRESS. SESS. II. CII. 869. JUNE 28, 1934. 1291
"(7) If any secured creditor of the debtor, affected thereby, shall court to stay pro-
ceedings for 5 years
file written objections to the manner of payments and distribution ofStions
upon tocreditors'
manner ofobjec-
pay-
debtor's property as herein provided for, then the court, after having ments, etc.
set aside the debtor's exemptions as prescribed by the State law, shall
stay all proceedings for a period of five years, during which five session Dfebtorupon
to retain pos-
payment
years the debtor shall retain possession of all or any part of his of rentae.
property, under the control of the court, provided he pays a reason-
able rental annually for that part of the property of which he retains
possession; the first payment of such rental to be made within six
months of the date of the order staying proceedings, such rental to be
distributed among the secured and unsecured creditors, as their inter-
ests may appear, under the provisions of this Act. At the end of
five years, or prior thereto, the debtor may pay into court the ap- Payment by debtor.
praised price of the property of which he retains possession: Pro- Prosos. Lien holde may ask
vided, That upon request of any lien holder on real estate the court reappraisal.
shall cause a reappraisal of such real estate and the debtor may then
pay the reappraised price, if acceptable to the lien holder, into the
court, otherwise the original appraisal price shall be paid into
court and thereupon the court shall, by an order, turn over full
possession and title of said property to the debtor and he may apply
for his discharge as provided for by this Act: Provided, however,
That the provisions of this Act shall apply only to debts existing . xisting debts only,
at the time this Act becomes effective.
"If the debtor fails to comply with the provisions of this subection 1 Court may order
ithstrustee to sell, if terms
the court may order the trustee to sell the property as provided in this not complied with.
Act."
Approved, June 28, 1934.
So in original

HeinOnline -- 48 Stat. 1291 1928-1934