Assignment for benefit of creditors. The undersigned, A, is indebted to various persons, and on account of serious illness has been and is now unable to pay the indebtedness in full. A desires all of his [her] creditors to be treated in an equal manner, and to place his [her] property in such condition that every debt which he [she] owes shall, if possible, be paid in full. In order to carry out his [her] desires and to avoid the expense of a bankruptcy proceeding, and to realize the greatest amount out of his [her] property, so that his [her] creditors shall be paid in full if possible, he [she], joined by _________, his wife [her husband], executes this, the following trust agreement: 1. A and _________, his wife [her husband] of _________, County of _________ and State of _________, and _________, of the City of _________, County of _________ and State of _________, called trustee, and several persons, companies, corporations and firms who shall approve of this agreement, being the creditors of debtor, agree as follows: 2. A is indebted to the creditors in the several sums set opposite to their respective names in the schedule attached to this document, and marked "Exhibit A." 3. In pursuance of this agreement and in consideration of the premises, A, joined by his wife, [her husband], conveys and assigns to trustee, his [her] heirs, executors and administrators, all and singular the real and personal property, credits, and effects of A to which he [she] is beneficially entitled, either in possession, reversion, remainder or expectancy, except such part or parts as may be and is held to be specifically exempt and as shown by schedule "B" attached to and made a part of this document. The real estate being conveyed by A and his wife [her husband] to trustee by a regular deed of trust, signed, sealed and acknowledged and delivered to trustee for the purposes set out. To hold for the use of trustee, his [her] executors and administrators, according to the nature and tenure of the deed of trust, but subject to a mortgage now on the farm land of A conveyed to trustee, and subject to the rights of any life insurance certificate held by any of the creditors as collateral security. 4. For the consideration previously stated, A joined by his wife [her husband] appoint trustee to be their true and lawful attorney, in their names and on their behalf to execute, sign and deliver any deed or other document which trustee may think necessary or expedient for carrying into effect the trust and purposes of this agreement. 5. It is agreed that trustee shall stand possessed of the lands, hereditaments and personal property previously mentioned and conveyed on
trust, and shall sell and convey the lands and personal property, at such time or times, as shall be for the best interests of the creditors, and receive, collect and compel payment at the proper time of insurance policies, or other evidences of money owing to A, as shall by this agreement be conveyed to trustee in trust (subject to payment of such sums if any, as may be due to encumbrancers), and all other moneys which shall come to the hands of trustee under or by virtue of the trusts or powers contained in this document. 6. Upon trust in the first place, to pay such costs, charges and expenses of or incidental to the carrying of the trust into effect. 7. Trustee shall pay all claims at the proper time or times which are by law entitled to be paid in full, that are or may be entitled to priority, the same as in the case of bankruptcy or insolvency, by proceedings in a bankruptcy court. 8. Trustee shall pay, divide and distribute the proceeds at the proper time or times when the property can be so disposed of to bring the most money for the benefit of creditors, ratably unto and among the creditors in discharge of their debts, by such installments and at such times as trustee shall deem best and to pay the surplus, if any, to A, or in case of his [her] death to his wife [her husband]. 9. Provided, always, that notwithstanding the power of sale given, it shall be lawful for trustee to postpone sale and collection of any part of the premises or collection and sale of any other property transferred to trustee by this agreement at such time as is consistent with reducing the same to money as soon as this can be wisely done. 10. In the meantime and until the premises respectively shall have been called in, collected, sold and converted into money as previously stated, it shall be lawful for trustee at his [her] discretion to lease, manage, employ, repair and insure against loss or damage by fire or otherwise, at the cost of the trust estate, all or any part of the premises. 11. It shall be lawful for trustee to carry on or cause to be carried on, the business of farming which debtor has previously carried on, and to use the income from the business: First. to pay the costs and charges set out in the preceding part of this agreement. Second. to pay the interest on the mortgage on the real estate, and taxes that may become due and payable. Third. to pay the surplus, if any, ratably to the creditors. 12. Provided, always, that this agreement shall not in any way prejudice or affect the rights or remedies of the creditors against any surety or sureties or
any other person or persons other than A. Nor shall this agreement in any way prejudice or affect any security which any of the creditors may have or claim for his [her] debts. But, if the security shall be enforceable against A or his [her] effects, than the creditor (unless he [she] shall consent to abandon his [her] security) shall be entitled to receive dividends or payments under this agreement, or payment in full on so much of the secured debt as may remain after the security shall have been realized or the surety shall have paid the debt for debtor, or after credit shall have been given for the full value of the debt. 13. A ratifies and confirms and agrees with trustee that he [she] will, if and when required by him [her], ratify and confirm whatever the trustee shall do or purport to do by virtue of the power given in this agreement. 14. It is understood that A now has in force in life insurance policies aggregating $_____, $_____ of which is at once assigned to trustee; that $_____ of which is in the hands of _________ as collateral security for a loan; and that _________ holds $_____ of the insurance as collateral security for a loan; that if and in the event, during the life of this trust, the policies should be paid in full, the surplus after payment of the loans for which they are collateral security, shall be paid to trustee for the benefit of other creditors. Provided, that policy No. _________ for $_____ shall remain in the hands of debtor during his [her] natural life, he [she] to receive whatever dividends or payments that may be made to him [her] during that time, but that at his [her] death, the face value of the policy, if necessary, shall be paid to trustee for the benefit of his [her] creditors. Provided, always, that all of the life insurance policies are conveyed to trustee, or the proceeds of the policies, subject to the rights of the parties set out above. 15. It is further agreed that this trust agreement shall continue in full force and effect until after the death of A unless terminated sooner by direction of a majority in number and amount of the creditors, directing the property to be turned into money and paid ratably among the creditors. Provided, A declares it to be his [her] intention that all of the creditors shall share pro rata in the proceeds of all his [her] property, and in the event that any creditor attempts by suit or other legal proceeding to acquire a preference, or refuses to consent to this trust, trustee is authorized to file a petition for debtor in bankruptcy. 16. It is agreed by trustee and the creditors that the compensation to be received by trustee shall not exceed the sum of $_____ annually, but not until the interest on the mortgage indebtedness and taxes and fire and tornado insurance on the trust property are fully paid. Provided, on the termination of this trust by full payment of all creditors, trustee shall receive such fee as shall be reasonable. If the trust is terminated sooner by the direction of a majority, both in number and amount of the creditors, the compensation to be paid to trustee on the end of the trust, shall be the same compensation as is allowed now by the laws of _________ to administrators and executors.
17. In case of the death or resignation of the trustee named, it shall be lawful, and the creditors are authorized by a majority vote, both number and amount, to elect another trustee to fill a vacancy so caused. 18. It is further agreed that if and when the creditors shall be paid in full the several amounts due and owing to them, that the surplus of property or proceeds shall be paid to _________, wife [husband] of A. 19. This trust shall continue for one year after the death of A unless terminated sooner by the creditors. [Date and signatures]