Johnson v. American Bank

Citations

• 5 Alaska 145

Syllabus

<p>1. Bankruptcy &wkey;»163—Preference to Bank.</p> <p>Prior to the declaration of bankruptcy the bankrupts deposited gold dust in the defendant bank, to which they were then indebted in an equal or larger sum. The bank immediately credited the amount on the note of the bankrupts held by the bank. On suit brought by the trustee subsequently appointed to recover the amount of. the deposit as an unlawful preference within four months, held, the bank had a right to set off against a debt due it from the bankrupts any deposit of the bankrupts held by it at the time of bankruptcy, and such set-off would not amount to a preference, nor be voidable at the election of the trustee.</p> <p>.2. Bankruptcy <&wkey;302(l)—Recovery of Preference—Action-Pleading.</p> <p>The trustee in bankruptcy brought suit to recover an amount deposited by the bankrupts in a bank within four months prior to the adjudication of bankruptcy on the ground of unlawful preference. Held, the complaint must not only allege that the transfer would effect a preference, and that the bank had knowledge of the insolvency of the depositors, but it must also allege that the bank had knowledge that the 'transfer of the fund from the depositors’ account would effect a preference forbidden by law.</p> <p><@=oSee same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes</p>