Massachusetts § 41 - Trusts for the benefit of creditors; validity of certain acts of trustees; requirements; fees; statement of trustee

§ 41. Trusts for the benefit of creditors; validity of certain acts of trustees; requirements; fees; statement of trustee

Section 41. The preceding section shall not apply to the acts of such trustee unless the assignment conveys all the property and estate of the debtor wherever situated, either within or without the commonwealth, not exempt from attachment by the laws thereof, and provides for its distribution in substantial conformity with chapter two hundred and sixteen; nor unless a majority in number and value of the creditors, whose claims are neither secured nor preferred by said chapter, have assented in writing to the assignment; nor unless the trustee, before proceeding to act and immediately on the acceptance of his trust, gives written notice by mail or otherwise to all known creditors of the debtor of such assignment and his acceptance thereof, and deposits with the clerk of the city or town where the principal business of the debtor is carried on a copy of such assignment, which shall be filed and indexed by said clerk upon receiving the fee provided by clause (1) of section thirty-four of chapter two hundred and sixty-two.

The provisions of section forty shall not apply to the acts of such trustee unless the assignment provides, in cases where the assets or liabilities exceed five thousand dollars, that the trustee shall furnish to all assenting creditors and to all other creditors having claims in excess of three hundred dollars, at least fifteen days before distribution of any assets, a statement in writing indicating, the total assets of the trust, the total liabilities of the trust, and administrative costs, trustee's fees, legal fees, and other miscellaneous expenses.

Such statement shall also contain an affidavit of the debtor that the total assets shown therein constitutes all his property and estate wherever situated, either within or without the commonwealth, which is not exempt from attachment.