Logan v. Brick

Citations

• 2 Del. Ch. 206

Syllabus

<p>A voluntary conveyance, though without a fraudulent intent, is void, as against creditors, under the statute of 18 Elizabeth.</p> <p>Such a conveyance is void if it tend to hinder and delay creditors, though it may not otherwise injure them. '</p> <p>The answers of the grantor and grantee in a voluntary conveyance, denying a fraudulent intent, though responsive to the bill, is no defence, since such conveyance is, as against creditors, a fraud in law, irrespective of the intent of the parties.</p> <p>A conveyance being held fraudulent and void as against creditors, certain mortgages of the property conveyed, taken by the vendor by way of consideration, were nevertheless held good in the hands of an assignee for value without notice.</p> <p>The answer of the assignee, denying knowledge of fraud in the securities assigned to him and alleging himself to be a bona fide purchaser, for value, being responsive to the bill, is conclusive, unless rebutted by two witnesses or by one witness with corroborating circumstances.</p> <p>The assignee, in such case, having a collateral security for the money advanced upon the mortgages, was required, for the benefit of junior-creditors against the mortgaged property, first to exhaust his remedy upon the collateral security.</p> <p>A creditor having the security of two funds out of which he can satisfy his debt, upon one of which only another creditor has a junior lien, will be compelled in equity to resort first to the fund which the junior creditor cannot reach.</p>