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Deed of Arrangement

debtor and creditors

DEED OF ARRANGEMENT. A deed of arrangement, whether under seal or not, made by a debtor for the benefit of his creditors, otherwise than under the Bank ruptcy Acts, includes (1) an assignment of his property to a trustee, in order that it may be realised and the proceeds divided amongst the creditors (see ASSIGNMENT FOR BENEFIT OF CREDITORS) ; and (2) a deed or agreement under which the creditors agree to accept a composition—that is, a payment of so much in the pound in full discharge of the debts due by the debtor to them (see COM POSITION WITH CREDITORS) ; and, in cases where creditors of a debtor obtain any con trol over his property or business, it also includes a deed of inspectorship entered into for the purpose of carrying on or winding up the business ; and a letter of licence authorising the debtor or any other person to manage, carry on, realise, or dispose of a business, with a view to the payment of debts ; and any agreement or instrument authorising the debtor or any other person to manage, carry on, realise, or dispose of the debtor's business, with a view to the payment of his debts (Section 2 of the Deeds of Arrangement Act, 1887).

.\ deed of arrangement is void unless registered within seven clear days after the first execution thereof by the debtor or any creditor (Section 5 of the above Act). The Registrar of Bills of Sale is the registrar for deeds of arrangement.

The register may be searched on payment of 2s. tici. The registrar transmits a copy of each deed to the registrar of the county court in the district of which tire place of business or residence of the debtor is situate, and any person may search such registered copy on payment of a similar fee. (Sec BANK RUPTCY.