Lowene v. American Fire Insurance

Citations

• 6 Paige Ch. 482
• 1837 N.Y. LEXIS 279
• 1837 N.Y. Misc. LEXIS 70

Syllabus

<p>A creditor of an insurance company, whose loss accrued previous to the calamity which rendered the corporation insolvent, is not entitled to a preference in payment, out of the funds of the company in the hands of the receivers, over other creditors whose claims arose at the time when the insolvency happened, unless a specific appropriation of some part of the corporate property had been previously made for the satisfaction of such prior loss.</p> <p>Where a dividend is declared in favor of the stockholders of a monied corporation, if the company becomes insolvent before the payment of the dividend or a specific appropriation of a portion of the corporate property for that purpose, the stockholders arc not entitled to a preference in payment out of the general funds of the company, but must come in rateably with other creditors.</p> <p>Creditors of an insolvent corporation, upon a proceeding in equity to close up the concerns of the company, are to be paid rateably, without reference to the times when their several debts accrued.</p>