Chap. 263.—An ACT to amend and re-enact section 5187 of the Code of Vir-
ginia, in relation to the sale of merchandise in bulk, as amended by chapter
332 of the acts of assembly of 1926. [S B 181]

Approved March 24, 1930

1. Be it enacted by the general assembly of Virginia, That
section fifty-one hundred and eighty-seven of the Code of Virginia, as
amended by chapter three hundred and thirty-two of the acts of as-
sembly of nineteen hundred and twenty-six, be amended and re-enacted
so as to read as follows:

Section 5187. To prevent persons engaged in buying and selling
merchandise, while indebted, from selling their entire stock of mer-
chandise in bulk, or selling the major portion thereof, otherwise than
in the ordinary course of trade——The sale, transfer or assignment in
bulk of any part or the whole of a stock of merchandise, or the fix-
tures pertaining to the conduct of said business, otherwise than in the
ordinary course of trade, and in the regular and usual prosecution of
the seller’s business, shall be void as against creditors of the seller,
unless the seller and purchaser at least ten days before the sale, make
a full detailed inventory showing the quantity, and so far as possible
with the exercise of reasonable diligence, the cost price to the seller of
each article to be included in the sale; and unless the purchaser de-
mands and receives from the seller a written list of names and ad-
dresses of creditors of the seller, with the amount of indebtedness due
or owing to each, and certified by the seller under oath, to be to the
best of his knowledge and belief, a full, accurate and complete list of
his creditors and of his indebtedness; and unless the purchaser shall,
at least ten days before taking possession of such merchandise or pay-
ing therefor or giving some note or other evidence of indebtedness
therefor, notify personally or by registered mail, every creditor, whose
name and address is stated in such list, of the proposed sale, stating
the aggregate value of the merchandise proposed to be sold, as shown
by such inventory, the consideration to be paid therefor, and the time
and manner of payment.

The seller and purchaser shall each preserve the inventory, list
and afhdavit required by this section for the period of six months,
after such sale and purchase, and the same shall be open to the inspec-
tion of the creditors of the seller.

After the expiration of said six months no suit or action shall be
brought to have declared void, or the effect of which will be to have
adjudicated void, any such sale or purchase, as is mentioned in this
section. ,

Provided, however, that any sale heretofore or hereafter made in
good faith and for value, where the foregoing requirements of this
section have not been complied with, and possession of the property has
been delivered to the purchaser, and no suit or action has been or shall
be brought within twelve months after the date of said sale and de-
livery to have such sale declared void, shall be deemed valid notwith-
standing the provisions of this statute, and no suit or-action shall there-
after be brought to have the same declared void, except that in sales
heretofore made, any creditor shall have two months from the date
this act becomes effective in which to institute a suit or action to have
such sale declared void.

Sellers and purchasers under this section shall include corporations,
co-partnerships, and individuals, but nothing contained in this section
shall apply to sales by executors, administrators, receivers, assignees
under voluntary assignments for the benefit of creditors, trustees in
bankruptcy, or by any one acting under judicial process.