Page:United States Statutes at Large Volume 53 Part 1.djvu/637

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CXXXII CODIFICATION OF INTERNAL REVENUE LAWS SEC. 473. Upon confirmation of an arrangement- (1) the arrangement and its provisions shall be binding upon the debtor, upon any person issuing securities or acquiring property under the arrangement, and upon all creditors of the debtor, whether or not they are affected by the arrange- ment or have accepted it or have filed their claims, and whether or not their claims have been scheduled or allowed and are allowable; (2) the' debtor, and any corporation or trust organized or to be organized for the purpose of carrying out the arrangements, shall comply with the pro- visions of the arrangement and with all the orders of the court relative thereto and shall take all action necessary to carry out the arrangement; (3) distribution shall be made, in accordance with the provisions of the ar- rangement, to the creditors, proofs of whose claims have been filed prior to the date fixed by the court and are allowed, or, if not so filed, whose claims have been scheduled by the debtor as fixed debts, liquidated in amount and not dis- puted: Provided, however, That where such debts are objected to by any party in interest, the objections shall be heard and summarily determined by the court. SEC. 474. Upon confirmation of an arrangement, the property dealt with by the arrangement, when transferred by the trustee appointed under this chapter to the debtor, or to a trustee or corporation provided for by the arrangement, or, if no trustee has been appointed under this chapter, when transferred by the debtor to a trustee or corporation provided for by the arrangement, or when retained by the debtor, as the case may be, shall be free and clear of all debts affected by the arrangement, except such debts as may otherwise be provided for in the arrangement or in the order confirming the arrangement or in the order directing or authorizing the transfer or retention of such property. SEC. 475. The court may direct the debtor, his trustee, any mortgagees, in- denture trustees, and other necessary parties to execute and deliver or to join in the execution and delivery of such instruments as may be requisite to effect a retention or transfer of the property dealt with by the arrangement which has been confirmed, and to perform such other acts, including the satisfaction of liens, as the court may deem necessary for the consummation of the arrange- ment. SEC. 476. The confirmation of an arrangement shall discharge a debtor from his debts and liabilities provided for by the arrangement, except as provided in the arrangement or the order confirming the arrangement, excluding such debts as are not dischargeable under section 17 of this Act. SEC. 477. Upon the consummation of a proceeding under this chapter, after confirmation of an arrangement, the court shall enter a final decree discharging the trustee, if any, closing the estate, and making such provisions, by way of injunction or otherwise, as may be equitable. ABTICLE X-DISMISSAL AND ADJUDICATION SEC. 481. If an arrangement is withdrawn or abandoned prior to its accept- ance and no other arrangement is pending, or if no arrangement is accepted at the meeting of creditors or within such further time as the court may fix, or if the money or other consideration required to be deposited is not deposited or the application for confirmation is not filed within the time fixed by the court, or if confirmation of the arrangement is refused, the court shall- (1) where the petition was filed under section 421 of this Act, enter an order dismissing the proceeding under this chapter and directing that the bankruptcy be proceeded with pursuant to the provisions of this Act; or (2) where the petition was filed under section 422 of this Act, enter an order upon hearing after notice to the debtor, the creditors, and such other persons as the court may direct, either adjudging the debtor a bankrupt and directing that bankruptcy be proceeded with pursuant to the provisions of this Act or dismissing the proceeding under this chapter, whichever in the opinion of the court may be in the interest of the creditors. SEC. 4S2. Where the court has retained jurisdiction after the confirmation of an arrangement and the debtor defaults in any of the terms thereof or the arrangement terminates by reason of the happening of a condition specified in the arrangement, the court upon hearing after notice to the debtor, the creditors and such other persons as the court may direct shall- (1) where the petition has been filed under section 421 of this Act, enter an order dismissing the proceeding under this chapter and adjudging the debtor a bankrupt and directing that the bankruptcy proceeding be proceeded with pursuant to the provisions of this Act; or (2) where the petition has been filed under section 422 of this Act, enter an order either adjudging the debtor a bankrupt and directing that bankruptcy be proceeded with pursuant to the provisions of this Act or dismissing the pro- ceeding under this chapter, whichever in the opinion of the court may be in the interest of the creditors.