Meyers v. Somerset Trust Co.

Citations

• 75 Pa. Super. 40
• 1920 Pa. Super. LEXIS 219

Syllabus

<p>Bankruptcy — Bankruptcy Act — Unlawful preference — Application of funds of bankrupt — Case for jury.</p> <p>In an action by a trustee in bankruptcy to recover money derived from collaterals applied by a bank to the general indebtedness of a bankrupt, the case is for the jury to determine whether or not the money was received by the bank at a time when it had reasonable cause to believe that its acceptance would effect a preference.</p> <p>Practice, O. P. — Affidavit of defense — Defense not raised in affidavit — Practice Act of 1915.</p> <p>An offer to prove an' oral understanding between the bankrupt and the bank, with regard to the application of the proceeds derived from collaterals to the bankrupt’s general indebtedness, is properly refused, where there was no such averment in the affidavit of defense.</p> <p>Section 16 of the Practice Act of May 14, 1915, P. L. 483, limiting defenses to those raised by the affidavit of defense should be strictly enforced.</p>