National Security Bank v. Butler

Citations

• 129 U.S. 223
• 9 S. Ct. 281
• 32 L. Ed. 682
• 1889 U.S. LEXIS 1682

Syllabus

<p>Erom the facts of this case, it was held, that the intent of a national hank,' after it was insolvent, to prefer a creditor, by a transfer of assets, in violation of § 5242 of the Revised Statutes, was a necessary conclusion; that, if any other verdict than one for the plaintiff, in a suit at law by the receiver of the bank to recover the value of the assets from the creditor, had been rendered by the jury, it would have been the duty of the court to set it aside; and that it was proper to direct a verdict for the plaintiff.</p> <p>The meaning of § 5242 is not different from the meaning of § 52 of the act of June 3, 1864, c. 106, 13 Stat. 115.</p> <p>It is sufficient, under § 5242, to invalidate such a transfer, that it.is made in contemplation of insolvency, and either with'a view.on the part of tlie bank to prevent the application of its asset's in the manner prescribed by . chapter 4 of title 62 of tlie Revised Statutes, of with a view on its part to the preference of one creditor to ariother; and it is not necessary to such invalidity that tliere should be such view on the part of the creditor in receiving the transfer, or any knowledge or suspicion on his part at the time, that the debtor is insolvent or contemplates insolvency.</p>