Assignments for benefit of creditors; bankruptcy; salesmen
Sec. 1. Hereafter, when the property of any company, corporation,
limited liability company, firm or person, engaged in any
manufacturing, mechanical, agricultural or other business or
employment, or in the construction of any work or building, shall be
seized upon any mesne or final process of any court of the state, or
where their business shall be suspended by the action of creditors or
put into the hands of any assignee, receiver, or trustee, then in all
such cases the debts owing to laborers or employees, which have
accrued by reason of their labor or employment to an amount not
exceeding six hundred dollars ($600) to each employee, for work and
labor performed within three (3) months next preceding the seizure
of such property, shall be considered and treated as preferred debts
and such laborers or employees shall be preferred creditors and shall
be first paid in full, and if there be not sufficient to pay them in full
then the same shall be paid to them pro rata, after paying costs;
however, the term employees as used in this section shall include
traveling salesmen, traveling agents and manufacturers' agents,
whether they are employed under monthly or yearly contracts or
otherwise.
(Formerly: Acts 1879(ss), c.62, s.1; Acts 1885(ss), c.3, s.1; Acts
1917, c.109, s.1; Acts 1967, c.104, s.1.) As amended by P.L.8-1993,
SEC.277.
Last modified: May 27, 2006