In re Colton Export & Import Co.

Citations

• 115 F. 158
• 1902 U.S. Dist. LEXIS 208

Syllabus

<p>Bankruptcy — Preferences—Surrender—Necessity.</p> <p>Bankruptcy Act, § 60a, provides that a preference exists where the effect of the transfer is to enable one of the bankrupt’s creditors to obtain a greater percentage of his claim than other creditors of the same class. Section 57g declares that the claims of creditors who have received preferences shall not be allowed unless they are surrendered. A creditor of a corporation, after its insolvency and within four months of the adjudication, loaned it $40,000, and afterwards received payments of some $26,000. During the same period other creditors had put merchandise into the estate, and had received nothing on account It further appeared that the payments to the creditor in question were made after he had obtained representation on the corporation’s board of directors. Held, that the creditor had received a preference of $26,000, which would have to be surrendered before he could prove the balance of his claim.</p>