In all cases where a tenant or tenants become insolvent, and any assignment for the
benefit of creditors is executed, or a receiver is legally appointed for, or bankruptcy
or other insolvency proceedings are instituted either by or against the tenant or
tenants, covering goods and chattels upon demised premises and which are liable to
distress by the landlord for rent, the landlord shall be first entitled to receive
out of the proceeds of the sale of such goods and chattels by the legal representatives
of the tenant any sum or sums of money due the landlord for rent of such demised premises
at the time of the institution of the receivership or insolvency proceedings, not
exceeding one year's rent: Provided, That if the proceeds of the sale by the legal
representatives of the tenant shall not be sufficient to pay the landlord and the
costs of the insolvency proceedings, the landlord shall be entitled to receive the
proceeds of sale after deducting so much for costs as the landlord would be liable
to pay in case of a sale under distress. Nothing in this act shall be construed to deprive any person of preference for wages
now secured by law in any insolvency or receivership proceedings.
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