Lowe v. Matson

Citations

• 140 Ill. 108
• 29 N.E. 1036

Syllabus

<p>1. Insolvent debtor — voluntary assignment—property vests inassignee. By a general assignment of an insolvent debtor under the act relating to voluntary assignments for the benefit of creditors, the title to all real and personal property of the assignor vests in the assignee, whether mentioned in the deed of assignment or not; and'it is his duty to reduce the property to possession, and administer the fund, under the direction of the county court, and for this purpose he will be entitled to a reasonable time in which to gain such possession.</p> <p>2. Same—assignee of—reducing personal property to possession. An assignee, under the statute relating to assignments for the benefit of creditors, does not occupy the same position toward the assigned personal estate as a purchaser of such property, within the rule that a sale of chattels unaccompanied by a change of possession is fraudulent in law as to creditors of the vendor. He stands in the position of a trustee holding the assigned estate for the benefit of all creditors of the assignor.</p> <p>3. Same—assignee will have reasonable time to reduce property to possession, as against execution creditors. The rule of law that a sale of chattels unaccompanied by a change of possession is fraudulent per se as to execution creditors or subsequent purchasers of the vendor, does not apply to the ordinary purchase and sale of chattel property, when the possession of the vendor is consistent with the deed of sale, or when the sale is of such a public character as to give notoriety thereto. For this reason the rule has no application to assignments for the benefit of creditors. In such case the assignee has a reasonable time in which to reduce the property to possession, as against liens or executions issued after the execution and delivery of the deed of assignment. The want of an immediate change of possession is a circumstance from which fraud may be inferred, susceptible, however, of being contradicted by proof.</p> <p>