Peckham's Assigned Estate

Citations

• 35 Pa. Super. 330
• 1908 Pa. Super. LEXIS 36

Syllabus

<p>Bankruptcy — Insolvency—Federal act of July 1, 1898 — Pennsylvania insolvency Act of June 4, 1901, P. L. 404.</p> <p>The Pennsylvania insolvency Act of June 4, 1901, P. L. 404, never became operative as to the persons and subjects within the purview of the national bankruptcy act of July 1, 1898.</p> <p>Assignment for creditors — Effect of the assignment — Distribution— Liens — Real estate — Proceeds of fire insurance.</p> <p>The delivery of a deed of assignment for the benefit of creditors, makes the creditors of the assignor equitable owners of all that was assigned. The extent of each owner’s interest is measured by the amount of the debt due him at the date of the assignment, and each creditor is entitled on distribution to a pro rata share based on the entire amount of his indebtedness as it stood on the day of the assignment, irrespective of the fact that in the meantime the amount of the debt may have been diminished by the proceeds of the sale of real estate on which the creditor had a judgment, and the proceeds of a fire insurance policy on the same real estate, in which policy the creditor had an interest.</p> <p>Assignment for creditors — Promissory notes — Indorsement—Payment.</p> <p>Where on the date of an assignment for the benefit of creditors it appears that the assignor is indebted to a bank on a promissory note indorsed by a third person, and that after the assignment when the note became due, the bank accepted a renewal note made by the assignor to the order of the indorser, and the old note was surrendered to the indorser, the latter may prove on such note against the assigned estate.</p>