Gardner v. Haines

Citations

• 19 S.D. 514
• 104 N.W. 244
• 1905 S.D. LEXIS 74

Syllabus

<p>1. Under Rev. Civ. Code, § 2866, providing that a debtor may pay one creditor in preference to another,'a debtor has a right to organize a corporation, transfer his property to it for stock, and transfer the stock to a creditor in payment of the debt, so long as such transfers are not with intent to defraud.</p> <p>2. Transfers of property by a debtor over a year before the bankruptcy act was passed cannot be regarded as having been made in contemplation of bankruptcy.</p> <p>3. Capital stock of a corporation is a g-ood consideration for the transfer of property to the corporation.</p> <p>4. The mere transfer of property to a corporation for capital stock therein does not hinder or delay the creditors of the transferror, the stock being subject to execution. .</p>