Chap. 313.—An ACT to amend and re-enact Chapter 268 of the Acts of Assembly
of 1936, approved March 25, 1936, as amended, relating. to proof of claims by
certain creditors of insolvent banks or trust companies, so as to prescribe under
what conditions the publication of a list of creditors and the amounts due them
is unnecessary. [H B 401]

Approved March 26, 1946

Be it enacted by the General Assembly of Virginia :

1. That chapter two hundred sixty-eight of the Acts of Assembly
of nineteen hundred thirty-six, approved March twenty-five, nineteen
hundred thirty-six, as amended, be amended and re-enacted, as follows:

Section 1. Whenever in a pending suit, having for 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 ascer-
tained and established, and the receiver, special commissioner 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 engaged 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 princi-
pal 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 specified 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 the 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, to-
gether with a notice that any creditor therein named who shall fail to ap-
ply to the 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 thereafter be ordered. But if any such bank or trust com-
pany shall have been in liquidation for a period of more than ten years,
and more than five years shall have elapsed since the date of the entry
of the last court order directing the payment to creditors of dividends
on or other payments of claims as therein ascertained and established,
then it shall be unnecessary to publish a list of creditors to whom divi-
dends or payments are due and unpaid and the amount thereof, and it
shall only be necessary to publish a notice stating the total amount of div-
idends ordered paid and unclaimed and the fact that a list of such cred-
itors may be seen at the office of the receiver, liquidating agent or other
disbursing officer, and that any creditor 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
thereafter be ordered. Whenever there are two or more newspapers
having general circulation in the county or city where such suit or peti-
tion is pending, the court, in its discretion, may, in lieu of the publication
hereinabove provided, direct that the list of creditors, together with the
notice, shall be published once in at least two of such newspapers having
general circulation in the county or city. After the lapse of six months
from the date of the last publication of the notice aforesaid, the court shall
enter an order barring the claims of all creditors who have not thereto-
fore 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 proceeding, nor shall any process issue for
the enforcement of any claim to dividends or payments previously or-
dered paid to such creditor nor shall such creditor participate in future
dividends or payments thereafter ordered in the suit or petition to be
paid: provided, however, that the court in which any such suit or peti-
tion is pending may, in its discretion, before final distribution and for
good cause shown, reinstate any claim barred as aforesaid.