Acme Food Co. v. Meier

Citations

• 153 F. 74
• 82 C.C.A. 208
• 1907 U.S. App. LEXIS 4379

Syllabus

<p>1. bankruptcy — Acts op Bankruptcy — Solvency.</p> <p>Solvency at the time of the filing of a petition in involuntary bankruptcy is important as a defense only when the act of bankruptcy charged is the conveyance, transfer, or concealment of property with intent to hinder, delay, or defraud creditors, under Bankr. Act July 1, 189S, § 3 (1), e. 541,'30 Stat 546 [ü. S. Comp. St. 1901, p. 3422]. If the act of bankruptcy charged is the giving or permitting of a preference under subdivisions 2 or 3, insolvency must have existed at the time of the preference and solvency or insolvency at the time of the filing of the petition can only have a reflex importance as evidence.</p> <p>2. Same — Solvency—Value op Property Conveyed.</p> <p>Where conveyances of property by an alleged bankrupt are charged as acts of bankruptcy, under both subdivisions 1 and 2 of section 3, Bankr. Act July 1, 1898, c. 541, 30 Stat 546 [U. S. Comp. St. 1901, p. 3422], as made with intent to defraud and also as preferences, the value of the property thus conveyed is not to be computed in determining the question of solvency at the time of the filing of the petition as a defense under the first subdivision, but, if the, conveyances are found not to have been fraudulent, the value of such property is to be considered in determining the question of solvency or insolvency when the conveyances were made under subdivision 2.</p> <p>3. Same — Fraudulent Conveyance — Evidence.</p> <p>Bona fide conveyances intended only to secure indebtedness or to secure the grantees as sureties of the grantor do not constitute acts of bankruptcy under Bankruptcy Act July 1, 1898, § 3 (1), c. 541, 30 Stat. 546 [U. S. Comp. St. 1901,- p. 3422], and where such conveyances, made by warranty deed, are charged as fraudulent under said. subdivision, and also as preferences under subdivision 2, it is competent for the defendant to show by parol that they were given merely as security both for the purpose of showing the absence of