Grant v. National Bank of Auburn

Citations

• 197 F. 581
• 1912 U.S. Dist. LEXIS 1460

Syllabus

<p>1. Bankruptcy (§ 162*) — “Transfeb”—Acts Constituting.</p> <p>A debtor, who transfers his property to a creditor by voluntarily confessing judgment in favor of the creditor and allowing him to issue execution and make a levy and a sale resulting in the creditor becoming the purchaser, transfers his property within Bankruptcy Act July 1, 1898, c. 541, § 1, subd. 25, 30 Stat. 545 (U. S. Comp. St. 1901, p. 3418), providing that a transfer includes a sale and every other mode of disposing of property as a payment, pledge, mortgage, gift, or security.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. §§ 278-281; Dec. Dig. § 162.*</p> <p>For other definitions, see Words and Phrases, vol. 8, pp. 7064-7070, 7819.]</p> <p>2. Pleading (§ 214*) — Demurrers—Admissions.</p> <p>A demurrer to a pleading admits all facts pleaded, but not conclusions.</p> <p>[Ed. Note. — For other cases, see Pleading, Cent. Dig. §§ 525-534; Dec. Dig. § 214.*]</p> <p>3. Bankruptcy (§ 162*) — “Preference”—Acts Constituting.</p> <p>Where an insolvent debtor within four months of the filing of the petition in bankruptcy voluntarily confessed judgment in favor of a creditor holding past-due notes and knowing of the insolvency, and the creditor purchased the debtor’s property at execution sale, subject to prior judgments which he paid, and the debtor had reasonable cause to believe that the transaction would effect a preference, there was a “preference” within Bankruptcy Act July 1, 1898, c. 541, §§ 60a, 60b, 30 Stat. 562 (U. S. Gomp. St. 1901, p. 3445), as amended by Act June 25, 1910, c. 412, § 11, 36 Stat. 842 (TJ. S. Gomp. St. Supp. 1911, p. 1506), defining a preference and authorizing the trustee in bankruptcy to avoid preferences.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Gent. Dig. §§ 278-281; Dee. Dig. § 162.*</p> <p>For other definitions, see Words and Phrases, vol. 6, pp. 549S, 5499; vol. 8, p. 7759.]</p> <p>4. Bankruptcy (§ 284*) — Preferences—Demand by Trustee — Eff