In re Mertens

Citations

• 131 F. 972
• 1904 U.S. Dist. LEXIS 237

Syllabus

<p>1. Bankruptcy — Assets—Semitontine Insurance Policy.</p> <p>A seinitontine life insurance policy payable to a bankrupt or Ms assigns or legal representatives, which contains no provision for a cash surrender value, but, on the contrary, gives the insured no right except to a new paid-up policy without participation in profits in case of lapse, unless it remains in force at the end of the full tontine period, which time had not arrived when the adjudication was made, passes to the trustee as an asset of the estate, under Bankr. Act July 1, 1898, c. 541, § 70a, cl. 5, 30 Stat. 505 [U. S. Comp. St. 1901, p. 3451]; but such policy is not one having a “cash surrender value,” within the meaning of the proviso to said section which entitles the bankrupt to retain the same on making a payment to the trustee, although the company may offer to pay a sum for its surrender.</p> <p>2. Same — Right oe Trustee to Mature Tontine Insurance Policy.</p> <p>A trustee in bankruptcy, acting by direction of the court, has the right to make the payments necessary to mature a tontine life insurance policy payable to the bankrupt or his assigns or legal representatives for the benefit of the estate, and will be required to do so where it is clearly in the interest off the creditors.</p>