In re Meyer

Citations

• 115 F. 997
• 1902 U.S. Dist. LEXIS 256

Syllabus

<p>1. Bankruptcy — Preferences—Payments to Pledgee.</p> <p>Payments made on a note by an insolvent within four months prior to his bankruptcy, to an indorsee, who holds the note as collateral security for a debt of the payee, are payments to the payee, and must be surrendered by him before he can prove a further indebtedness against the bankrupt’s estate.</p> <p>& Same — Separate Claims — Debts Subsequently Contracted.</p> <p>Where a note, which covered all the then existing indebtedness of the maker to the payee, remains the property of the latter when further indebtedness is contracted, its payment thereafter, in whole or in part, while the debtor is insolvent, and within four months prior to his bankruptcy, is a partial payment on the entire indebtedness, of which it is a part, and constitutes a preference, which must be surrendered before the subsequent debts can be proved against the estate of the debtor in bankruptcy.</p>