Chap. 62.-An ACT to amend and re-enact an act entitled “An act to authorize
courts administering or liquidating the estates of insolvent banks or trust
companies operating in Virginia, and upon petition of trustees engaged in
the voluntary liquidation of the estates of such insolvents, to require creditors
to act with diligence in obtaining satisfaction of claims allowed therein upon
penalty of having such claims barred”, approved March 25, 1936. [H B 188]

Approved March 4, 1938

1. Be it enacted by the General Assembly of Virginia, That an
act entitled an act to authorize courts administering or liquidating
the estates of insolvent banks or trust companies operating in Vir-
ginia, and upon petition of trustees engaged in the voluntary liquidation
of the estates of such insolvents, to require creditors to act with dill-
gence in obtaining satisfaction of claims allowed therein upon penalty
of having such claims barred, approved March twenty-fitth, nineteen
hundred and thirty-six, be amended and re-enacted so as to read as
follows:

Section 1.. Whenever in a pending suit, having foe its object the
administration or liquidation of the assets of an insolvent bank or
trust company operating in Virginia, the court shall have ordered the
payment to creditors of dividends on or other payments of claims
as therein ascertained and established, and the receiver, special com-
missioner or other person or officer charged with the duty of making
the ordered payments to creditors shall have been unable to effect
such payment by reason of inability to ascertain the address of any
creditor or the failure of any creditor to apply to such disbursing
official for payment when so directed by the order of the court or
for any other similar reason, or whenever a trustee or trustees en-
gaged in the voluntary liquidation of the assets of an insolvent bank
or trust company operating in Virginia by petition to any court of
general jurisdiction in the county or city wherein the principal office
of such insolvent bank or trust company operating in Virginia is
located, shall allege and show to the satisfaction of the court his
or their inability to make payment to creditors for the reasons speci-
fied herein, the court, in its discretion, may enter an order directing
its receiver, special commissioner or other person or officer charged
with the duty of making such payments, or said trustee or trustees,
to publish in some newspaper, having a general circulation in the
county or city where such suit or petition is pending, at least twice,
a list of creditors to whom dividends or payments are due and unpaid
and the amount thereof, together with a notice that any creditor therein
named who shall fail to apply to said disbursing official for payment
of the amount due him or her within six months from the date of
the last publication of such notice will be barred from his or her
right to thereafter receive payment of amounts then due and from
participation in any future dividends or payments which may there-
after be ordered. Whenever there are two or more newspapers having
general circulation in the county or city where. such suit of petition
is pending, the court, in its discretion,.may, in lieu of the publication
hereinabove provided, direct that said list of creditors, together with
said notice, shall be published once in at least two of such newspapers
having general circulation in said county or city. After the lapse
of six months from the date of the last publication of the notice afore-
said, the court shall enter an order barring the claims of all creditors
who have not theretofore applied for payment of their claims, and
thereafter no creditor. who shall have failed to apply for payment
within such period shall bring or maintain any action, suit or pro-
ceeding, nor shall any process issue for the enforcement of any claim
to dividends or payments previously ordered paid to such creditor
nor shall such creditor participate in future dividends or payments
thereafter ordered in said suit or petition to be paid; provided, how-
ever, that the court in which any such suit or petition is pending
may, in its discretion, before final distribution for good cause shown,
reinstate any claim barred as aforesaid.

2. An emergency existing, this act shall be in force from its
passage.