Groff v. City Savings Fund & Trust Co.

Citations

• 46 Pa. Super. 423
• 1911 Pa. Super. LEXIS 288

Syllabus

<p>Insolvency — Preferences—Trust funds.</p> <p>1. A person claiming to be a trust creditor must, in order to establish his right to a preference, trace the trust money into some specific property, fund, security, or account of the insolvent, which has passed into the hands of the receiver or assignee, and the proceeds of which are to be distributed. He must identify the fund out of which he demands to be preferred in distribution either as the original trust property or as the product of it.</p> <p>2. Where a trust company deposits in a national bank for collection a certificate of deposit which it held as counter indemnity for liability on an executor’s bond, and the bank passes the proceeds of the certificate to the trust company’s account, and thereafter the trust company reduces the account below the amount represented by the certificate, and finally on the insolvency of the trust company, the bank applies the whole balance as a set-off to its own claim against the trust company, the executor cannot claim a preference over general creditors in the distribution of the assets of the insolvent trust company.</p>