Daugherty v. Monroe

Citations

• 79 Ill. 395

Syllabus

<p>1. Trust fund—whether it exists—set-off. Where a party purchased a newspaper and printing establishment, and gave notes therefor, which by the terms of the contract were to be placed in the hands of a third party to collect, and apply the same to the payment of the debts of such printing establishment, pro rata, the notes so given became a trust fund for the payment of such debts, and the maker thereof could not, by the purchase of claims against such printing establishment, or otherwise, prevent the creditors from sharing pro rata in that fund.</p> <p>3. But a note given by the same party, at a subsequent time, for the purchase of the subscription list of such newspaper, which was delivered to the payee, and no agreement made as to what purpose said note or the proceeds thereof were to be applied, will not become a trust fund, and there is no reason why the maker thereof may not purchase outstanding notes of such payee, and set them off in a suit brought by them upon such note.</p>