Elias Bach & Sons v. Smith-Pattison Mfg. Co.

Citations

• 21 Ohio C.C. Dec. 258

Syllabus

<p>RECEIVERS — PREFERENCES.</p> <p>Pbefebenoes Given fob Loans in Financial Panic Held Good.</p> <p>A contract by which a corporation hard pressed for money during a. financial panic, transfers certain accounts and pledges certain property as security for loans negotiated m good faith from persons not creditors. is valid, and the parties making such loans should he preferred over the ■general creditors upon distribution of funds in the hands óf a receivér subsequently appointed to wind up its affairs.</p> <p>[Syllabus approved by the court.]</p>