for an order directing payment to the claimant. A copy of the petition shall be served on the Canal Zone Government and thereafter the amount may not be covered into the Treasury of the United States, as directed by subsection (c) of this section, until so ordered by the

court.

(c) If no one claims the amount, or if a claim is made and disallowed and the court so directs, the amount deposited devolves to the United States and shall be covered into the Treasury as miscellaneous receipts.

Sec.

CHAPTER 71-RESORT TO ASSETS; SALES

1701. Order of resort to estate for debts. 1702. Order of sales for payment of debts. 1703. Order of resort to estate for legacies. 1704. Legacies, how charged with debts. 1705. Order of abatement of legacies.

1706. Sale of property to pay debts, legacies, family allowance, or expenses; selection.

1707. Confirmation of sales.

1708. Sale of perishable and depreciating property, and of personal property necessary to pay family allowance.

1709. Sale of personal property at public auction or private sale; notice. 1710. Partnership and pledged property interests; choses in action; duty of

court.

§ 1701. Order of resort to estate for debts

The property of a testator, except as otherwise specially provided in this title, shall be resorted to for the payment of debts, in the following order:

(1) property which is expressly appropriated by the will for the payment of the debts;

(2) property not disposed of by the will;

(3) property which is devised or bequeathed to a residuary legatee;

(4) property which is not specifically devised or bequeathed;

and

(5) all other property ratably.

§ 1702. Order of sales for payment of debts

In making orders and sales for the payment of debts or family allowance, those articles that are not necessary for the support and subsistence of the family of the decedent, or are not specially bequeathed, shall be first sold.

§ 1703. Order of resort to estate for legacies

The property of a testator, except as otherwise specially provided in this title, shall be resorted to for the payment of legacies, in the following order:

(1) the property which is expressly appropriated by the will for the payment of the legacies;

(2) property not disposed of by the will;

(3) property which is devised or bequeathed to a residuary legatee; and

(4) property which is specifically devised or bequeathed.

§ 1704. Legacies, how charged with debts

Legacies to spouse or kindred of any class are chargeable only after legacies to persons not related to the testator.

§ 1705. Order of abatement of legacies

Unless a different intention is expressed in the will, abatement takes place in any class only as between legacies of that class.

§ 1706. Sale of property to pay debts, legacies, family allowance,

or expenses; selection

(a) In selling property to pay debts, legacies, family allowance or expenses, there is no priority as between personal and real property. When a sale of property of the estate is necessary for any such purpose, or when it is for the advantage, benefit, and best interests of the estate and those interested therein that property of the estate be sold, the executor or administrator may sell the property, using his discretion as to which property to sell first, except as provided by sections 1701-1703 of this title.

(b) The executor or administrator in making a sale pursuant to subsection (a) of this section may sell the entire interest of the estate in the property or any lesser interest or estate therein.

§ 1707. Confirmation of sales

All sales of property shall be reported under oath to and be confirmed by the court, before the title to the property passes.

§ 1708. Sale of perishable and depreciating property, and of personal property necessary to pay family allowance At any time after receiving letters, the executor, administrator, or special administrator may sell perishable and other personal property likely to depreciate in value, or which will incur loss or expense by being kept, and as much other personal property as may be necessary to provide the allowance made to the family of the decedent pending the receipt of other sufficient funds, and title shall pass without confirmation; but the executor, administrator, or special administrator is responsible for the property unless, after making a sworn return, and on a proper showing, the court approves the sale.

§ 1709. Sale of personal property at public auction or private sale; notice

The sale of personal property may be made at public auction or private sale, for cash, and, except in the case of perishable property, after public notice given for at least 10 days by notices posted in three public places in the Canal Zone, or by publication in a newspaper of general circulation in the Canal Zone, or both, as the executor or administrator determines, containing the time and place of sale, and a brief description of the property to be sold. Public sales shall be made at the courthouse door, or at another public place, or at the residence of the decedent; but a sale may not be made of any personal property which is not present at the time of the sale, unless the court otherwise orders.

§ 1710. Partnership and pledged property interests; choses in action; duty of court

Be

Partnership interests or interests belonging to an estate by virtue of a partnership formerly existing, interest in personal property pledged, and choses in action, may be sold in the same manner as other personal property, when it appears to be for the best interest of the estate. fore confirming the sale of a partnership interest, whether made to the surviving partner or to any other person, the court shall inquire into the condition of the partnership affairs, and shall examine the surviving partner, if in the Canal Zone and able to be present in court.

CHAPTER 73-NOTES, MORTGAGES, CONVEYANCES AND

Sec.

TRANSFERS

SUBCHAPTER I-BORROWING MONEY AND MORTGAGING PERSONAL PROPERTY

1741. Authorization to borrow money or mortgage personal property.

1742. Petition; setting for hearing; notice.

1743. Hearing; witnesses; order.

1744. Execution of notes and instruments or security.

1745. Effectiveness of obligations created under this subchapter.

1746. Effect of irregularities.

SUBCHAPTER II-CONVEYANCES AND TRANSFERS TO COMPLETE CONTRACTS

1771. Authorization to complete contracts for sale or transfer.

1772. Filing petition; setting time and place of hearing; notice.

1773. Hearing; objections; order; compliance.

1774. Rights of petitioner after dismissal.

1775. Effect of conveyance or transfer.

1776. Effect of recording copy of order.

1777. Enforcement of order by other process.

1778. Death of party entitled to conveyance or transfer.

1779. Surrender of possession.

Subchapter I-Borrowing Money and Mortgaging Personal

Property

§ 1741. Authorization to borrow money or mortgage personal property

When it appears to be to the advantage of an estate under administration to borrow money upon a note or notes, either unsecured, or to be secured by a chattel mortgage or other lien upon the personal property of the decedent, or any part thereof, in order to pay the debts of the decedent, legacies, or expenses or charges of administration, or to pay, reduce, extend or renew a mortgage or lien already subsisting upon such personal property of the estate or a part thereof, and as often as occasion therefor arises in the administration of the estate, the court may, by order, authorize and direct the executor or administrator to borrow the money and to execute the note or notes, and, in the proper case, to execute the chattel mortgage or to give other security by way of pledge or other lien on the personal property. To obtain an order under this section, the proceedings to be taken and the effect thereof are as provided in this subchapter. § 1742. Petition; setting for hearing; notice

A verified petition for an order pursuant to section 1741 of this title may be filed with the clerk of the court by the executor or administrator, or a person interested in the estate, showing:

(1) the particular purpose for which the order is sought; (2) the necessity for, or the advantage to accrue from, the order;

(3) the amount of money proposed to be raised;

(4) the rate of interest, if any, to be paid;

(5) the length of time the note or notes are to run; and

(6) a general description of the property proposed to be mortgaged or subjected to other lien."

The clerk shall set the petition for hearing by the court and give notice thereof, including the posting of the notice, for the period and in the manner provided by section 1583 of this title.

§ 1743. Hearing; witnesses; order

(a) At the time appointed by section 1742 of this title, the court, upon proof that notice of the hearing has been given, shall proceed to hear the petition and any objections thereto that may have been filed or presented. The court may compel the attendance of, and

the giving of testimony by, witnesses, in the same manner, and with like effect, as in other cases.

(b) If, after a hearing, the court is satisfied that it will be to the advantage of the estate, it shall make an order authorizing and directing the executor or administrator to borrow the money and to execute the note or notes, and, in a proper case, to execute the chattel mortgage, or to give other security by way of pledge or other lien, on personal property of the estate. The court, in its order, may:

(1) direct that a lesser amount than that named in the petition be borrowed;

(2) prescribe the maximum rate of interest and period of the loan;

(3) require that the interest and the whole or any part of the principal be paid, from time to time, out of the whole estate or any part thereof.

§ 1744. Execution of notes and instruments of security

(a) If the order issued pursuant to section 1743 of this title directs the execution of a chattel mortgage, pledge, or other lien, the executor or administrator shall execute and deliver a promissory note or notes for the amount and period specified in the order, and at not more than the maximum rate of interest specified in the order, and shall execute the mortgage, pledge, or other lien, setting forth therein that it is made by authority of the order, and giving the date of the order.

(b) If the order issued pursuant to section 1743 of this title directs the negotiating of an unsecured loan, the executor or administrator shall execute and deliver a promissory note or notes, without security, for the amount and period specified in the order, and at not more than the maximum rate of interest specified in the order.

(c) Instruments executed and delivered under this section shall be signed by the executor or administrator, as such, and shall create no personal liability against the person so signing.

§ 1745. Effectiveness of obligations created under this subchapter

(a) A chattel mortgage, pledge, or other lien made and delivered under this subchapter is effectual to mortgage, pledge, or subject to lien all the right, title, and interest which the decedent had in the property described therein at the time of his death or prior thereto, and any right, title, or interest in the property acquired by the estate of the decedent by operation of law or otherwise, after his death.

(b) Notes signed and delivered in the negotiation of an unsecured loan under this subchapter are effectual to create a valid obligation and debt against the estate of the decedent, and are payable out of the funds of the estate.

§ 1746. Effect of irregularities

(a) An irregularity in proceedings under this subchapter with respect to the borrowing of money upon a note or notes secured by a chattel mortgage, pledge, or other lien, does not impair or invalidate the proceedings or the notes and mortgage, pledge, or other lien given in the pursuance thereof, and, except as provided by subsection (b) of this section, the mortgagee, his heirs and assigns, possess the same right and remedies on the note or notes and mortgage, pledge, or other lien as if it had been made by the decedent prior to his death. (b) Upon a foreclosure, if the proceeds of the encumbered property are insufficient to pay the note or notes, and mortgage, pledge, or other lien, a judgment or claim for any deficiency of the proceeds to satisfy the obligation, or the costs or expenses of sale, may not be had or allowed, except in cases where the note or notes, mortgage, pledge, or other lien were given to pay, reduce, extend, or renew a mortgage or

lien subsisting on the property, or a part thereof, at the time of the death of the decedent, and the indebtedness secured by the mortgage or lien so subsisting was an allowed and approved claim against the estate, in which case the part of the indebtedness remaining unsatisfied shall be classed and paid with other demands against the estate, as provided by sections 1881-1887 of this title, with respect to mortgages and other liens subsisting at the time of death.

Subchapter II-Conveyances and Transfers to Complete Contracts

§ 1771. Authorization to complete contracts for sale or transfer When a person who is bound by contract in writing to convey any real estate, or to transfer any personal property, dies before making conveyance or transfer, and in all cases when the decedent, if living, might be compelled to make the conveyance or transfer, the court having jurisdiction of the probate proceedings of the estate of the decedent, may make a decree authorizing and directing the executor or administrator of the decedent to convey or transfer the real estate or personal property to the person entitled thereto.

§ 1772. Filing petition; setting time and place of hearing; notice The executor or administrator, or a person claiming to be entitled to a conveyance or transfer, as referred to in section 1771 of this title, may file with the clerk of the court a verified petition, setting forth the facts upon which the claim is based. Thereupon, the clerk shall set the time and place for hearing of the petition by the court. Notice thereof shall be served on the executor or administrator personally, when he is not the petitioner, and shall be published at least once a week for four successive weeks before the hearing, in a newspaper of general circulation in the Canal Zone.

§ 1773. Hearing; objections; orders; compliance

(a) At the time and place appointed for a hearing under this subchapter, or at such other time to which the hearing may be postponed, upon satisfactory proof by affidavit or otherwise, of the publicatíon of the notice, the court shall proceed to hear the petition, and all persons interested in the estate may appear and contest it, by filing their objections in writing, and the court may examine, on oath, the petitioner and all who may be produced before him for that purpose.

(b) If, after a full hearing upon the petition and objections and examination of the facts and circumstances of the claim, the court is satisfied that the conveyance of the real estate described in the petition to the party entitled thereto should be made, it shall make a decree authorizing and directing the executor or administrator to execute a conveyance thereof to the party entitled thereto.

(c) The executor or administrator shall execute the conveyance or transfer according to the directions contained in the order; and the order is prima facie evidence of the correctness of the proceedings, and of the authority of the executor or administrator to make the conveyance or transfer.

§ 1774. Rights of petitioner after dismissal

If, upon a hearing under this subchapter, the right of the petitioner to have a specific performance of the contract is found to be doubtful, the court shall dismiss the petition without prejudice to the rights of the petitioner, who may, at any time within six months after the dismissal, proceed by action to enforce a specific performance thereof.