Lawrence v. Neff

Citations

• 41 Cal. 566
• 1871 Cal. LEXIS 137

Syllabus

<p>Insolvent’s Conveyance to Certain Creditors, for themselves and others, not “Assignment FOR Benefit of Creditors.”—Where Stanford, being in insolvent circumstances and largely indebted, conveyed, by an instrument in writing, certain valuable personal property to five persons, as a committee appointed by and representing themselves, and about ninety-five of his other creditors, reserving in himself a right to redeem in six days; and, at the same time, he delivered possession of the property, and the said creditors gave him receipts in full; held, that the instrument and transaction was not an “ assignment for the benefit of creditors,” within the meaning and prohibition of section thirty-nine of the insolvent law (Stats. 1852, p. 69.)</p> <p>Preferences of Creditors by Insolvents.—There is nothing in section thirty-nine of the insolvent law (Stats. 1852, p. 69) prohibiting an insolvent debtor from conveying his property absolutely, or by way of security, directly to one or more of his creditors, to the exclusion of the remainder.</p> <p>Insolvent Act, Section Thirty-nine—“Assignment for Benefit of Creditors.”—Section thirty-nine of the insolvent law (Stats. 1852, p. 69) was aimed wholly at “assignments for the benefit of creditors;” but a conveyance to the creditor himself is not an “ assignment,” in the sense of the statute.</p>