Coder v. Arts

Citations

• 152 F. 943
• 15 L.R.A.N.S. 372
• 1907 U.S. App. LEXIS 4353

Syllabus

<p>1. Appeal — Review—Questions of Fact — Bankruptcy Proceedings.</p> <p>Where one engaged principally in farming made a mortgage upon a large part of his lands for $98,503.32 to secure a pre-existing debt within four months before he filed a voluntary petition in bankruptcy and the court below sustained it, held (1) where the court has considered conflicting evidence and made a finding or decree, it is presumptively correct, and, unless some obvious error of law has intervened, or some serious mistake of fact has been made, the finding or decree must be permitted to stand; (2) no such error or mistake was disclosed by the record, and the finding of the court below, that the mortgagee did not have reasonable cause to believe that it was intended to give a preference by the mortgage, and that the mortgagor did not intend thereby to hinder, delay, or defraud any of his other creditors, must be affirmed.</p> <p>'2. Bankruptcy — Administration of Estate — Preferences—Effect.</p> <p>A transfer by an insolyent, within four months prior to the filing of a petition, for the purpose of securing or paying a pre-existing debt, without any intent or purpose to affect other creditors injuriously beyond the necessary effect of the security, is lawful, if not violative of other provisions of law, and it does not evidence any intent to hinder, delay, or defraud creditors within the meaning of Ba'nkr. Act July 1, 1898, c. 541, § 67e, 30 Stat. 564 [U. S. Comp. St. 1901, p. 3449],</p> <p>3. Same — Mortgages.</p> <p>The transfer specified in Bankr, Act July 1, 1898, c. 541, § 60a, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3445], includes a mortgage or a lien voluntarily created by tbe debtor. If such a mortgage or lien creates a preference under section 60a, it is nevertheless not voidable under section 60b unless the creditor who receives it or is benefited thereby, had reasonable cause to believe that it was intended to give a preference by it.</p> <p>4, Same.</p> <p>A transfer or mortg