Jackson Bank v. Durfey

Citations

• 72 Miss. 971

Syllabus

<p>1. PARTNERSHIP. Appropriation of assets to individual debts. Insolvency.</p> <p>The members of an insolvent partnership cannot lawfully convert the joint estate into severalty, and appropriate it to their individual debts to prevent its subjection by firm creditors, or where, to do so will inevitably leave them unpaid.</p> <p>2. Same. Eixwvty of firm creditors. Case.</p> <p>While creditors of a partnership have no lien on its assets, and while the partners, so long- as the firm is a solvent and “ g-oing- ” concern, may use firm assets to pay individual debts, where the partners, themselves insolvent, execute trust-deeds conveying their respective interests in certain firm assets to secure their individual debts when the firm is insolvent, or when there is no reasonable ground to expect that, after the property is so applied the firm debts can be paid, the trust-deeds are fraudulent as to existing firm creditors. Hanover Banltv. Klein, G4 Miss., 141, criticised.</p>