Seaver v. Spink

Citations

• 65 Ill. 441

Syllabus

<p>1. Bankruptcy—conveyance, under sec. 35 of the bankrupt act, whether fraudulent or not. Where a bankrupt executed, a deed of trust to secure a bona fide indebtedness several years prior to the filing of the petition in bankruptcy, but the same was acknowledged and recorded only about two months prior to that date, and there was no complicity on the part of the creditor to enable the debtor to procure credit, or even laches on his part in not recording the deed, from the fact that he had been imposed upon by forged certificates of acknowledgment and of record: Held, that the deed of trust was not affected by the 35 th sec. of the bankrupt law, but was valid.</p> <p>2. The non-registry of a deed of trust in no way affects its validity under the bankrupt law; neither does the fact that it was not acknowledged by the grantor, as it is good and valid -between the parties, and also as to creditors with notice, without acknowledgment.</p> <p>3. Registry oe deed. The creditor holding a deed of trust is under no obligation to record the same for his own protection, except as against subsequent purchasers and judgment creditors; and admitting that the assignee in bankruptcy of the grantor occupied such position, yet if the instrument is recorded before the filing of the petition in bankruptcy, the latter can claim no priority of the deed of trust.</p>