Benner v. Scandinavian American Bank

Citations

• 73 Wash. 488
• 131 P. 1149
• 1913 Wash. LEXIS 1626

Syllabus

<p>Shipping — Sales—Recording Conveyances — Failing to Record— Effect — Rights of Creditors. An unrecorded bill of sale of a ship is invalid as against a creditor of the vendor seeking to sequester property to satisfy the obligations due him, in view of IJ. S. Rev. St. § 4192, providing that no bill of sale or conveyance of any vessel shall be valid against any person other than the mortgagor and persons having actual notice thereof, unless the same is recorded in the office of the collector of customs in which the vessel is registered or enrolled; the act being remedial and to be liberally construed.</p> <p>Bankruptcy — Trustee — Powers—Fraudulent Conveyances. A trustee in bankruptcy represents the creditors of the bankrupt, and can avoid any transfer or conveyance which they could have avoided, and has plenary power to take all necessary steps to subject the bankrupt’s property to satisfaction of his obligations.</p> <p>Bankruptcy — Preferences—Time of Transfer- — Failure to Record Bill of Sale. Under § 60 of tlie bankruptcy act, providing that a person shall be deemed to have been given a preference if, being insolvent, be has, within four months of filing the petition, made any transfer of his property, and that such period of four months shall not expire until after the date of recording the transfer if such recording is required, a bill of sale of a vessel executed by the bankrupt, but not recorded as required by law more than four months prior to the filing of the petition, is an unlawful preference.</p> <p>Corporations — Insolvency—Preference — Transfers — Validity. A conveyance by a domestic corporation, after insolvency preferring creditors, is void, as its property is a trust fund for all its creditors.</p> <p>Bankruptcy — Preference—Unrecorded Bill of Sale. Under § 67 of the bankruptcy act, providing that claims shall not be liens against the estate if they would not be valid against claims of creditors for want of record or for other reasons, a transfer