In re Nassau

Citations

• 140 F. 912
• 1905 U.S. Dist. LEXIS 121

Syllabus

<p>1. Bankruptcy — Voidable Preferences — Reason to Believe Debtob Insolvent.</p> <p>Where the agent of a creditor, when taking mortgages to secure the indebtedness to his principal within four months prior to the debtor’s bankruptcy, had knowledge of facts which should have put him on inquiry as to the debtor’s solvency, he and his principal are legally chargeable with knowledge of such facts as the inquiry would have disclosed.</p> <p>[Ed. Note. — For eases in point, see vol. 6, Cent. Dig. Bankruptcy, § 258.]</p> <p>2. Same — Evidence.</p> <p>Evidence considered, and held to show that a bankrupt was insolvent at the time of giving mortgages to secure a prior indebtedness within four months prior to his bankruptcy, and that the agent who acted for the mortgagee in taking the security had reasonable cause to believe him insolvent, and that a preference was intended, which rendered the mortgages voidable by the bankrupt’s trustee.</p>