Bennett v. North Philadelphia Trust Co.

Citations

• 66 Pa. Super. 261
• 1917 Pa. Super. LEXIS 238

Syllabus

<p>Partnership — Individual and partnership indebtedness — Bwnlcrupt&y — Set-off.</p> <p>Where a person borrows money from a bank and gives to the bank a collateral note with securities “to secure the payment of any past, or of any future obligation” of the debtor, and at about the same time the bank makes loans on notes of a partnership of which the debtor is a member, and subsequently the firm and its individual members are declared bankrupts and default is made on the notes held by the bank, and thereafter the collateral accompanying the collateral note is sold, realizing an amount in excess of such, note, the bank may apply the excess of the proceeds to the payment of the partnership notes. There is nothing in the Federal Bankruptcy Act to forbid such application of the proceeds.</p> <p>Where property is held in pledge as against a bankrupt, his trustee has no higher right to the property than the bankrupt, unless some reason of law or public policy provides otherwise.</p> <p>Unless the bankruptcy law otherwise provides, the validity of a claim is to be determined in accordance with the principles of the local law.</p>