In re T. H. Bunch Commission Co.

Citations

• 225 F. 243
• 1915 U.S. Dist. LEXIS 1244

Syllabus

<p>Bankruptcy €=161—Voidable Preferences—Effect in Delay in Recording Mortgages.</p> <p>Under Bankr. Act (Act July 3, 1898, c. 541, 80 Stat. 544) § 47, as amended by Act June 25, 1910, e. 412, § 8, 86, Stat. 840 (Comp. St. 3913, § 9631), vesting the trustee in bankruptcy with all the rights of a creditor holding a lien and section 60a, as amended by Act Feb. 5, 1903, c. 487, § 13, 32 Stat. 799 (Comp. St. 1913, § 9644), declaring that a person shall be deemed to have given a preference if, being insolvent, he has, within four months before filing the petition or after the filing and before adjudication, made a transfer of any of his property, and that the period of four months shall not expire until four months after date of the record of the transfer as required by law, and section 60b, as amended by Act June 25, 1910, c. 412, § 11, 36 Stat. 842 (Comp. St. 1913, § 9644), declaring that if, at the time a bankrupt makes a transfer, or at time of recording thereof, as required by law, being within four months before filing of petition in bankruptcy or after the filing and before adjudication, he is insolvent, the transfer shall operate as a preference, a mortgage, required by Kirby’» Dig. Ark. §| 5895, 5396, 5107, to be recorded to be good as against subsequent purchasers or lien creditors, must be treated as made when first filed for record, and when not filed until within four months of the mortgagor’s adjudication in bankruptcy, it is invalid as against his trustee, who may recover the mortgaged property or its value, if in possession of the mortgagee, though the mortgage was in fact previously executed to secure a bona fide debt; the bankrupt being insolvent at the time of the filing for record.</p> <p>[Ed. Note.—For other eases, see Bankruptcy, Cent. Dig. §§ 261-263; Dec. Dig. €=161.]</p> <p>«S^sjl'or otte*- cases see same topic & KKY-NUMBifiR in all Key-Numbered Digests & Indexes</p>