Calhoun v. Bank of Clio

Citations

• 123 F. 181
• 1903 U.S. Dist. LEXIS 225

Syllabus

<p>L Bankruptcy—Voidable Preference—Exchange of Securities.</p> <p>A mortgage given by an insolvent within 4 months prior to his bankruptcy, to secure an existing indebtedness in lieu of other security which is surrendered, constitutes a- preference, unless the security surrendered •was of equal value; and where such security was of less value the mortgage is voidable by the trustee as to the excess, if it appears that the-creditor knew or had reasonable cause to believe that the debtor was insolvent, and intended thereby to obtain a preference.</p> <p>¶ 1. See Bankruptcy, vol. 6, Cent. Dig. § 266.</p>