Page:United States Statutes at Large Volume 76A.djvu/752

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–656–

-656(b) Except as provided in this subsection, the proceedings to be taken to obtain an order under this section and the effect thereof shall be the same as provided by sections 1742-1744 of this title with respect to the estate of a decedent and the executor or administrator thereof. The notice of hearing of the petition by the guardian or a person interested in the estate under section 1742 of this title shall be given by the clerk by posting and by mailing to the nearest relatives of the ward residing in the Canal Zone, and to other persons interested in the estate, for the period and in the manner provided by section 1583 of this title. (c) A chattel mortgage, pledge, or other lien made and delivered under this section is effectual to mortgage, pledge, or subject to lien all the right, title and interest which the ward has in the property described therein. (d) Notes signed and delivered in the negotiation of an unsecured loan under this section are effectual to create a valid obligation and debt against the ward, and shall be payable out of the funds of his estate. (e) An iregularity in proceedings under this section 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 pursuance thereof, and, except as provided in subsection (f) of this section, the mortgagee, his heirs and assigns, possess the same rights and remedies on the note or notes and mortgage, pledge, or other lien as if it had been made by the minor ward after reaching the age of maturity or the incompetent ward when legally competent. (f) 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, )ledge or other lien were given to pay, reduce, extend, or renew a ien upon the interest of the minor in the property at the time it vested in him, or upon the estate of the incompetent ward at the time his incompetency was declared by the court. § 3043. Procedure for sales of property All proceedings by guardians concerning sales of property of their wards shall be had and made as required by Part 3 of this title concerning estates of decedents, unless otherwise specially provided in this Part. All known relatives of the ward within the third degree residing in the Canal Zone whose addresses are known to the guardian shall within two days after filing of the return of sale be served by mail with a brief notice of the time set for hearing of the return. § 3044. Application and investment of proceeds of sales (a) If the estate is sold for the purposes mentioned in this chapter, the guardian shall apply the proceeds of the sale to those purposes, as far as necessary, and put out the residue, if any, at interest, or invest it in the best manner in his power, until the capital is needed for the maintenance of the ward and his family, or the education of his children, or for the education of the ward if a minor, in which case the capital may be used for that purpose, as far as may be necessary, in like manner as if it had been personal estate of the ward. (b) If the estate is sold for the purpose of putting out or investing the proceeds, the guardian shall make the investment according to his best judgment, or in pursuance of any order that may be made by the court.

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