In re Wiessner

Citations

• 115 F. 421
• 1902 U.S. Dist. LEXIS 229

Syllabus

<p>Bankruptcy — Preferences—Discount of Debtor’s Note.</p> <p>Wliere a note given upon an account has been discounted before maturity in the usual course of business, even with the indorsement of the payee, and the proceeds thereof have been applied to the debtor’s account, it should be regarded as a payment of money by the debtor as of that date, provided it does not appear that the note thereafter came back to the payee for failure of the maker to meet the same; and the amount so received through the discount of the note constitutes a preferential payment, which the creditor is required to surrender before he can prove against the estate of the debtor in bankruptcy other items of indebtedness created prior to the discount, but does not affect his right to prove those created thereafter though before the note was paid to the transferee.</p>