Harris v. Lombard

Citations

• 60 Miss. 29

Syllabus

<p>1. Pledge. Pre-existing debt. Distinatimi between pledge and sale.</p> <p>Where a debtor gives up to his creditor personal property for the latter “ to sell the same and apply the proceeds to the payment of” a pre-existing debt, the creditor is not to be regarded as a purchaser, but as a pledgee taking the property as a security for his debt.</p> <p>2. Same. Purchaser for value or pledgee. Intent of parties.</p> <p>A creditor who accepts a pledge for a pre-existing debt is not a purchaser for value, and the validity of the transaction, as against other creditors of the pledgor, is determinable, not alone by the good faith of the pledgee, but also by the lawful or unlawful intent of the debtor in making the pledge. It would be otherwise, if the creditor take the property as a purchaser, relinquishing his debt, in whole or in part, as the consideration for the purchase; in which case, the creditor being a purchaser for value, would not be affected by the fraudulent intent of the vendor, if he have no notice thereof.</p>