Boyes v. Turk Mining Co.

Citations

• 56 Wash. 515
• 106 P. 475
• 1910 Wash. LEXIS 836

Syllabus

<p>Corporations — Insolvency—Assets—Purchase by Stockholders —Fraudulent Conveyances. Part of the stockholders of an insolvent corporation may, as individuals, subscribe a fund with which to purchase the corporate assets upon the foreclosure of a bona fide mortgage thereon, where the stock was nonassessable and other stockholders would not raise funds by a pro rata voluntary assessment; and such transaction is not a fraud on creditors where the property was openly and fairly purchased at a public execution sale.</p> <p>Same — Trust Fund — Rights of Creditors. That the assets of an insolvent corporation constitute a trust fund for the benefit of creditors does not affect the validity of a foreclosure sale under a mortgage given by the corporation, before insolvency.</p> <p>Mortgages — Foreclosure—Vacation of Sale — Estoppel—Satisfaction as Equitable Assignment — Equity—Doing Equity. A judgment creditor of an insolvent corporation, who stood by and permitted a purchaser to acquire its rights and thereafter expend money in improvements, cannot ask the vacation of a foreclosure sale under a prior bona fide mortgage, so as to establish a prior lien'in his favor, without offering to pay the mortgage; since the mortgage would continue as a valid lien equitably assigned to the purchaser at the foreclosure sale, which sale would not satisfy the mortgage.</p>