Glover v. Lee

Citations

• 140 Ill. 102
• 29 N.E. 680

Syllabus

<p>1. Insurance—payable to third party as his interest may appeal— who entitled to the insurance money in case of loss. A corporation being indebted to a bank, in pursuance of a prior agreement took a policy of insurance on its property, containing a provision that any loss should be payable to the bank as its interest might appear, and the policy, when issued, was, with the consent of the insurance company, transferred to the bank as security for the debt of the corporation. The. company did not dispute the validity of the policy: Held, that the-bank was entitled to the insurance money, as against an attaching creditor of the corporation.</p> <p>2. Same—assignment to secure creditors—right of preference. A corporation, after a loss by fire, at the instance of a bank holding its notes, with the assent of the insurance company, assigned certain policies of insurance to the bank as a further security, before any other creditors acquired any lien or took any steps to reach the assets of the debtor: Held, that the bank, by the assignment of the policies, acquired the right to have its debt first paid out of the insurance money, as against subsequent attaching creditors.</p> <p>3. Preference of creditors. A debtor has the right to pay any or all of its creditors any debt which it owes, or it may secure one creditor in preference to others, and, if done in good faith, such preference will be sustained by the courts.</p> <p>i. Corporation—power of president to bind. As a private corporation generally acts through its president, an act done through or by him will be presumed to be authorized, unless it is shown otherwise. When an article of incorporation invests the president with power to sign all written instruments, and the corporation does not deny his power, an indorsement or assignment of insurance policies by him to a creditor will be sustained, if made in good faith.</p>