Armstrong, Cator & Co. v. Holland

Citations

• 35 Fla. 160

Syllabus

<p>1. The purpose of the statute in reference to assignments for the benefit of creditors (Chapter 3891, laws of 1889) is to enforce the equitable rule of securing an equal distribution of the property of the asssignor among all his creditors, and this purpose being clearly equitable, should be pursued in good faith.</p> <p>2. When an insolvent dc btor has determined upon an assignment of his property under the statute for the benefit of his creditors,' and in pursuance of such determination first secures one creditor by giving him a mortgage on property subject to assignment, and then executes an assignment of the same property for the benefit of all his creditors, both instruments will be considered as parts of one transaction, and if an equal distribution of the property among all the creditors is not thereby secured, it will be in violation of the statute and a fraud upon creditors.</p>