1720: 7 George 1 stat. 1 c.31: An act for explaining and making more effectual the several acts concerning bankrupts.
WHEREAS merchants, and other traders in goods, have been very often obliged, and more especially of late years, to sell and dispose of their goods and merchandizes to such persons as have occasion for the same, upon trust or credit, and to take bills, bonds, promisory notes, or other persons securities for their monies, payable at the end of three, four or six months, or other future days of payment, and the buyers of such goods becoming bankrupts, and commissions of bankruptcy being taken out against them before the money upon such bonds, notes, or other securities became payable, it hath been a question whether such persons, giving such credit or such securities, should be let in to prove their debts, or be admitted to have any dividend, or other benefit by the commission, before such time as such securities became payable, which hath been a great discouragement to trade, and great prejudice to credit within this realm; for remedy whereof be it enacted and declared by the King’s most excellent majesty, by and with the advice and consent of the lords spiritual and temporal and commons, in this present parliament assembled, and by the authority of the same, That all and every person and persons, who have given credit, or at any time or times hereafter shall give credit on such securities, as aforesaid, to any person or persons who is, are, or shall become bankrupts, upon a good and valuable consideration bona fide, for any sum or sums of money, or other matter or thing whatsoever, which is or shall not be due or payable at or before the time of such person’s becoming bankrupt, shall be admitted to prove his, her and their several and respective bills, bonds, notes, or other securities, promise or agreements for the same, in like manner as if they were made payable presently, and not at a future day; and shall be intitled unto, and shall have and receive a proportionable part, share and dividend of such bankrupt’s estate in proportion to the other creditors of such bankrupts, deducting only thereout a rebate of interest, and discounting such securities payable at future times, after the rate of five pounds per centum per annum for what he shall so receive, to be computed from the actual payment thereof to the time such debt, duty or sum of money should or would have become due and payable in and by such securities, as aforesaid.
II. And be it further enacted by the authority aforesaid, That all and every person or persons, who now are or shall become bankrupts, shall be discharged of and from all and every such bond, note, or other security, as aforesaid, and shall have the benefit of the several statutes now in force against bankrupts, in like manner, to all intents and purposes, as if such sum of money had been due and payable before the time of his becoming a bankrupt.
III. Provided always, and it is hereby declared. That no such creditor shall be deemed or taken to be a sufficient creditor, for or in respect of such debt, to petition or join in any petition for the obtaining or suing forth any commission of bankruptcy, until such time as such debt shall become actually due and payable.