Iglehart v. P. J. Willis & Bro.

Citations

• 58 Tex. 306
• 1883 Tex. LEXIS 16

Syllabus

<p>1. Debtor and creditor.— A creditor of an insolvent debtor, who, being in full possession of all the facts connected with a former transfer of the debtor’s goods to secure a preferred creditor, takes a deed of trust upon the goods which may remain after, from their sale, the trustee of the preferred creditor has discharged his trust by paying the preferred debt, is not entitled, in a contest between creditors involving the distribution of the funds, to priority of payment over the preferred creditor.</p> <p>2. Fraudulent conveyance.— The mere fact that a creditor of an insolvent, procures by a trust deed from him, a preference over other creditors equally meritorious, and that the transfer effected by such deed has tbo effect of hindering or delaying other creditors in the collection of their just debts, and that it was so intended by the debtor, will not of itself, if the transaction is in truth bona-fide on the part of the preferred creditor, necessarily vitiate the transfer.</p>