In re Davison

Citations

• 179 F. 750
• 1910 U.S. Dist. LEXIS 296

Syllabus

<p>1. Bankruptcy (§ 323*) — Secured Claims — Security—Valuation—Proceedings.</p> <p>Where a bankrupt’s creditor held certain insurance policies, having no cash surrender value, as security for its claim, and the creditor and the trustee could not agree on their' valuation, the creditor was entitled to have the value fixed by litigation before the referee, under Bankr. Law July 1, 1898, c. 541, §§ 57, 58, 30 Stat. 560, 561 (U. S. Comp. St. 1901, pp. 3443, 3444), providing that the value of securities shall be determined by converting them into money according to the agreement pursuant to Which they were delivered to the creditor, or by agreement, compromise, or litigation, as the court may. direct, and the amount of such value credited on the claims and dividends paid on the balance.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. §§ 503, 505, 513; Dec. Dig. § 323.*]</p> <p>2. Insurance (§ 222*) — Insurance Policies — Conversion.</p> <p>Where a bankrupt assigned certain insurance' policies having no surrender value, to a bank as collateral security for certain loans, and there was no agreement as to the mode in which the value of the policies should be determined or the manner in which they should be sold or disposed of to realize thereon in case of the buyer’s default, the bank was authorized at its election to convert the policies into money and apply the proceeds to the debt, and was not required to continue the loan until the maturity of the policies, paying the premiums to preserve the security and trusting to it for reimbursement on the death of the insured.</p> <p>[Ed. Note. — Eor other cases, see Insurance, Cent. Dig. § 492; Dec. Dig. 222.*]</p> <p>3. Bankruptcy (§ 323*) — Security—Valuation—Surrender.</p> <p>Where a bank held certain policies as security for a debt against a bankrupt, and, on bankruptcy intervening, the policies were valued in litigation before the referee, and the amount of such value deducted from the bank’s claim in ascert