Friend v. Rosenfeld-Rovig Co.

Citations

• 87 Wash. 329
• 151 P. 776
• 1915 Wash. LEXIS 901

Syllabus

<p>Bankruptcy—■ Preferences — Avoidance — Knowledge of Transferee. The grantee in a bill of sale by an insolvent is not shown to have had “reasonable cause to believe” that the enforcement of the transfer would effect a preference, within the meaning of § 60 of the Federal bankruptcy law, providing that all such transfers within four months before filing the petition in bankruptcy shall be voidable by the trustee, where it appears that the debtor-vendor, made a sworn statement of the names and addresses of all his creditors, with the amount of indebtedness owing, in compliance with the sales-in-bulk act, Rem. & Bal. Code, § 5296, from which it appeared that he was solvent, that the omission of the name of his principal creditor rendered him liable to perjury, under § 5298 of the act, and that the grantee took in good faith for the benefit of the creditors named, without knowledge of any other creditor or of the vendor’s insolvency.</p>