Assigned Estate of Wilhelm

Citations

• 182 Pa. 281
• 37 A. 819
• 1897 Pa. LEXIS 808

Syllabus

<p>Assignment for creditors — Judgment—Collateral security — Interest.</p> <p>An assignee for creditors, who is also a creditor of the assignor, holding a note with stock as collateral security, cannot, after he has sold the stock as pledgee, retain the proceeds of the sale as collateral and claim interest upon the note to the time of final distribution of the assigned estate. He must apply the proceeds of the sale at once to the payment of his debt in relief of the other creditors.</p> <p>An assignee for creditors was also a creditor of the assignor, and held a judgment which was the first lien against the assignor’s real estate. The real estate was sold by the assignee under an order of court. Held, (1) that the assignee as a creditor was not entitled to interest on the amount of the judgment from the date of the confirmation of the sale to the date of distribution; (2) that, as the assignee was a creditor and received the proceeds of the sale for its own use, it was bound, as trustee for all of the creditors, to apply the proceeds to the discharge of its own debt at once.</p>