Schoolher, Bernstein & Co. v. Hutchins

Citations

• 66 Tex. 324
• 1 S.W. 266
• 1886 Tex. LEXIS 514

Syllabus

<p>1. Statutory assignment—A deed of assignment which declares the insolvency of' its makers, conveys to the assignee, for the benefit of all their creditors, all their property real and personal, and provides for a prorata distribution of its-proceeds, in proportion to their respective claims, is an assignment under the-statute.</p> <p>2. Same—Debtor’s release—A deed of assignment containing no stipulation requiring releases of the debtor by accepting creditors, but stating that the purpose of the assignors is to make a just distribution of the assets among such creditors as accept the assignment, and providing for a pro rata distribution among such accepting creditors, is not in contravention of the statute.</p> <p>3. Same—Non-accepting creditors—Creditors who do not establish their claims under the assignment, can reach only that which is not found necessary to satisfy the claims of accepting creditors and costs and expenses of the assignment.</p> <p>4. Same—Foreign creditors—Assignments made under the act of March 24, 1879, are binding upon creditors, citizens of and resident in another state, as fully as upon citizens of this state here resident. This rule is not different when the release of the debtor is a condition upon which creditors may take under the assignment. (Keating v. Vaughan, 61 Tex., 519.)</p> <p>5. Same—Powers and duties of the assignee—See opinion for powers conferred: upon the assignee by the deed held not in excess of those allowed the assigneeby the statute. To expressly grant in the deed of assignment the powers conferred by the statute upon the assignee, cannot invalidate the assignment. If the deed attempts to confer powers which, under the law, the assignee could not legally exercise in the execution of the trust, this would not be sufficient reason for holding the assignment invalid.</p> <p>6. Same—When an assignment is made under the statute, the rights of creditors-vest, and may be protected to the extent allowed by the law. The assig