In re Scherzer

Citations

• 130 F. 631
• 1904 U.S. Dist. LEXIS 271

Syllabus

<p>1. Bankruptcy — Preferential Transfer of Property — Deposit in Bank.</p> <p>The deposit of money in bank by an insolvent within four months prior to his bankruptcy, on open account, subject to cheek, does not constitute a transfer of property amounting to a preference, under Bankr. Act July 1, 1898, c. 541, § 60a, 30 Stat. 562 [TJ. S. Comp. St. 1901, p. 3445], although the bank may be at the time a creditor; and, under section 68a, the bank has the right to apply the balance in such account as a set-off on its claim.</p> <p>2. Same — Application of Deposit to Debt Due Bank.</p> <p>The application by a bank of the amount standing to the credit of a depositor in his general account, subject to check on a note of the depositor, although within four months prior to his bankruptcy, and while he was insolvent, does not constitute a preference which must be surrendered, under Bankr. Act July 1, 1898, § 57g, as amended (Act Eeb. 5, 1903, c. 487, 32 Stat. 799 [U. S. Comp. St. Supp. 1903, p. 415], as a condition to the proving of a claim against the estate.</p>