Chap. 332.—An ACT to amend and re-enact section 5187 of the Code of Vir-
ginia of 1919, entitled to prevent persons engaged in buying and selling
merchandise, while indebted, from selling their entire stock of merchandise
in bulk, or selling the major portion thereof, otherwise than in the ordinary
course of trade. | {H B 363]

Approved March 24, 1926.

1. Be it enacted by the general assembly of Virginia, That
section fifty-one hundred and eighty-seven of the Code of Virginia
of nineteen hundred and nineteen, to prevent persons engaged in
business, while indebted, from selling their entire stock of mer-
chandise or trade fixtures in bulk, other trade assets, or selling the
major portion thereof, otherwise and in the ordinary course of
trade, be amended and re-enacted so as to read as follows:

Section 5187. The sale, transfer or assignment in bulk of any
part of the whole of a stock of merchandise, or merchandise and of
fixtures or other trade assets pertaining to the conduct of the business
of the seller, transferrer or assignor, 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
demands and receives from the seller a written list of names and
addresses 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,
fixtures, or other trade assets, or paying 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, fixtures and other trade assets 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
inspection 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.

Sellers and purchasers under this section shall include corpora-
tions, 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.