HL Deb 15 June 1865 vol 180 cc252-3

House in Committee (according to Order).

Clause 1 (The Advance of Money on Contract to receive a Share of Profits not to constitute the Lender a Partner.)

LORD ST. LEONARDS

expressed his disapprobation of the principle involved in the clause, which he feared would be calculated to embarrass the transactions of trade.

After a few words from Lord CHELMSFORD and Lord WENSLEYDALE, which were inaudible,

Clause agreed to.

Clauses 2, 3, and 4 agreed to.

Clause 5 (In Case of Bankruptcy, &c, Lender not to rank with other Creditors.)

LORD CHELMSFORD

said, he believed that that clause, which was the only one in the Bill that proposed to give any protection to the general creditor, would require careful consideration before it was sanctioned by the House.

THE LORD CHANCELLOR

suggested that his noble and learned Friend should submit to their Lordships any Amendment of the clause he might think advisable on the bringing up of the Report.

LORD CHELMSFORD

said, that on the bringing up of the Report he should propose a clause to the effect— That if the lender of any such loan shall withdraw the same or any part of it from the trade or business in question, and if within a year afterwards the trader shall be adjudged a bankrupt or insolvent, or make any agreement with his creditors to pay less than 20s. in the pound, or should die in insolvent circumstances, the amount so withdrawn shall be liable to be applied to the payment of the creditors.

LORD CRANWORTH

thought the Bill was already strong enough to prevent fraud.

Clause agreed to.

Remaining clauses agreed to.

LORD BROUGHAM,

on the Report, said, he highly approved of this amendment of the law. It was a natural and useful consequence of those great improvements in our commercial law, the limited liability and the abolition of the Usury Laws; and beside its other merits, it had that of relieving the courts from the most subtle distinctions which had been introduced rather perhaps by the process and decisions of courts, and some of which by their refinements and subtleties reflected no very great credit upon these tribunals.

An Amendment made; The Report thereof to be received on Monday next; and Bill to be printed as amended. (No. 162.)