Gschwend v. Estes

Citations

• 51 Cal. 134

Syllabus

<p>Assignment fob the Benefit of Creditors. — If a debtor enters into an agreement with his creditors by which a person named in the agreement is to take charge and possession of his property as trustee for the creditors, and is to sell and dispose of the property, and the net proceeds are to be applied to the payment of debts, and the trustee accepts of the trust, and the creditors direct and control the trustee in the management of the business; the debtor is entitled in equity to have the proceeds in the hands of the trustee applied as a credit on the debts, and is not compelled to look to the trustee for the same if he fails to make a proper application of such proceeds.</p>