Cook v. Moody

Citations

• 18 Wash. 114
• 50 P. 1020
• 1897 Wash. LEXIS 117

Syllabus

<p>INSOLVENT CORPORATION — ILLEGAL PREFERENCE.</p> <p>Although a mortgage Is given by an insolvent corporation to a creditor, who has knowledge of its insolvency, with the intention and expectation that the corporation will, by means of an extension of time of payment thus secured, be enabled to continue business and eventually pay off its indebtedness, the mortgage constitutes a preference voidable at the instance of either existing or subsequent creditors, under the rule that the property of an insolvent corporation is a trust fund for the benefit of all creditors. (Gordon, J., dissents).</p>