P. C. Hanford Oil Co. v. First National Bank

Citations

• 126 Ill. 584
• 21 N.E. 483

Syllabus

<p>1. Insolvent lebtoks—powers and jurisdiction of county court—in case of voluntary assignment. Where a voluntary assignment is made under the statute, and the property has passed into the hands of the assignee, the property is thereby brought under the administrative control of the county court, and that court is invested with ample power and jurisdiction to make all orders in respect thereof necessary to the distribution under the law, and to that end to adjudicate upon,and determine the conflicting rights of claimants thereto.</p> <p>2. Same—assignee—Ms relation as between debtor and creditor. The assignee, in cases of voluntary assignments for the benefit of creditors, is not the representative of the creditors, but the agent of the assignor for the distribution of the property, and the assignee’s agreement with one creditor will in no way bind or conclude another creditor.</p> <p>3. Same—priorities among creditors—adjusted by county court. The' county court has the power to determine whether certain executions have or have not the prior lien, and entitled to be first paid out of the debtor’s estate, and make all proper orders to protect the rights of all parties in interest.</p> <p>4. Same—preferences among creditors. Notwithstanding the Voluntary Assignment act, a debtor, though insolvent, may still secure, by mortgage or confession of judgment, or otherwise, a bona fide indebtedness, if done in good faith, and not in contemplation of making an assignment under that act.</p> <p>5. Where the debtor enters upon a course of conduct having for its object the disposition of all his estate for the benefit of his creditors, and, as part of the plan by which to effect that object, executes a general assignment, the distribution must be to his creditors in proportion to the amounts of their respective claims. If he takes steps whereby to give one creditor preference over another, his action will be fraudulent and void.</p> <p>6. A debtor had, on October 13,1884, given