Cole v. Marple

Citations

• 98 Ill. 58
• 1881 Ill. LEXIS 227

Syllabus

<p>1. Fraudulent conveyance—transfer of policy of life insurance by insolvent debtor to his wife—effect of sec. 54, oh. 73, Rev. Slat. 1874, entitled “ Insurance.’’ Where an insolvent debtor holds an insurance policy upon his own life, he may assign the same to his wife, who may hold the proceeds of the policy exempt from the claims of creditors of-her husband, except as to the amount of premiums paid by the husband within five years, the period of limitation, and interest thereon. Such a transaction is> within the spirit of section 54, eh. 73, Rev. Stat. 1874, entitled “Insurance,” which provides that a married woman may, by herself and in her own name, or in the name of any third person, with his assent, as her trustee, cause to be insured, for her sole use, the life of her husband, etc. That statute is remedial in its character, and should be liberally construed in furtherance of the purpose of its enactment.</p> <p>2. Husband and wife—of the mode of transfer, as between them, of goods and chattels, and of ehoses in action—construction of the statute. Section 9, ch. 68, Rev. Stat. 1874, entitled “ Husband and Wife,” providing that where husband and wife shall be living together, no transfer or conveyance of goods and chattels between such husband and wife shall be valid as against third persons, unless such transfer or conveyance be in writing, and be acknowledged and recorded, is not to be so construed as to require an assignment of a chose in action between husband and wife to be acknowledged and recorded. So, the assignment by the husband to his wife of a policy of insurance upon the life of the former, is not in that regard embraced in the statute.</p> <p>3. Ckeditor’s bill—preference as the reward of diligence. Where a creditor files a bill to subject property or a fund in the hands of a third person, to the payment of his debt, he thereby acquires a lien upon such property or fund, and upon recovery will be entitled to a preference in the satisfaction of hi