Coder v. McPherson

Citations

• 152 F. 951
• 82 C.C.A. 99
• 1907 U.S. App. LEXIS 4354

Syllabus

<p>1. Bankruptcy — Involuntary Proceedings — Grounds—Preference — Transfer of Property.</p> <p>A debtor stated to his creditor on December 21, 1903, that his property was worth §216,750, and that he owed only §36,000. On May 2, 1904, he made a mortgage on a part of his property for §98,503.32 to another creditor. On June 18, 1904, he made another statement to his creditor that ids property was worth §254,710, and that he owed §195.400, of which §117,500 was secured by mortgages upon his real estate. Thereupon, the creditor to secure its claim for §22,000, toot from him three mortgages which together covered substantially all the debtor’s unexempt property except a few hogs and horses, including his tools, machinery, and crops, and the debtor, who was then insolvent, thereby gave a preference under section 00a of the bankruptcy law, Act July 1, 1898, c. 541, 30 Stat. 562 [U. S. Comp. St. 1901, p. 3445]. Hold, the creditor had reasonable cause to believe when it took the mortgages that it was intended thereby to give a preference.</p> <p>2. Notice — Constructive Notice — B’acts Putting on Inquiry.</p> <p>Notice of facts which would incite a person of reasonable prudence to an inquiry under similar circumstances is notice of all the facts which a reasonably diligent inquiry would develop.</p> <p>[Ed. Note. — Por cases in point, see Cent. Dig. vol. 37, Notice, §§ 4, 6.]</p> <p>(Syllabus by the Court.)</p>