Boese v. King

Citations

• 108 U.S. 379
• 2 S. Ct. 765
• 27 L. Ed. 760
• 1883 U.S. LEXIS 1049

Syllabus

<p>Assignment for the Benefit of Creditors — Bankruptcy—Conflict of Lem.</p> <p>1. A general assignment for the benefit of creditors, made ■without intent to hinder, delay, or defraud creditors, is valid for the purpose of securing an equal distribution of the estate of the assignor among his creditors, in proportion to their several demands, except as against proceedings instituted under the Bankrupt Act for the purpose of securing the administration of the property in a bankruptcy court.</p> <p>2. A general assignment of a debtor’s property made for the benefit of creditors, purporting to be made under a State Insolvent Law which had, at the time of the assignment, been suspended in whole or in part by a bankrupt act, may nevertheless be sustained as sufficient to pass a title to assignees in the absence of proceedings in bankruptcy impeaching it, or of appropriate steps by the assignor for its cancellation.</p> <p>3. The assignees of a debtor under a general assignment fourths ratable distribution of his property among his creditors, purporting to be made under a local insolvent law of the State in which the debtor resides, deposited for convenience the proceeds of the sales of the debtor’s property in a bank in another State. In the latter State, creditors of the debtor obtained judgment and execution against him. The execution being returned unsatisfied, the judgment creditors, under a local law of the latter State, obtained the appointment of a receiver of the debtor’s property within that State. The receiver, thereupon, brought suit against the assignees for the sum so deposited, claiming it as the property of the debtor : Held, That the receiver was not entitled by reason of any conflict between the local statute and the Bankrupt Act, or by force of the judgment and the proceedings thereunder, to the possession of the assigned property or of its proceeds, as against the assignees, or to a priority of claim for the benefit of the judgment creditors upon such