Strawn v. Iams

Citations

• 247 Pa. 132
• 93 A. 174
• 1915 Pa. LEXIS 794

Syllabus

<p>Assignments for benefit of creditors — Voluntary assignments— Assignees — Rights—Defenses to actions — Act of June 4, 1901, P. L. 404-</p> <p>1. In cases of voluntary assignment for the benefit of creditors, the assignee stands in the shoes of his assignor when liens created more than four months before the liened property was assigned, are sought to be enforced; he cannot avail himself of defenses which his assignor could not have set up, and will not be permitted to show, in an action of scire facias on a mortgage, given by the assignor more than four months before the assignment, that the mortgage was a fraud on the assignor’s other creditors, and the fact that the assignee is warned and is on record as terre tenant is not material. Sec. 11 of the Act of June 4, 1901, P. L. 404, relating to the powers of assignees for the benefit of creditors, did not confer upon assignees rights in relation to property encumbered or transferred more than four months before the assignment which creditors did not enjoy prior to the act, but empowered the assignee to enforce in his own name the rights which prior to the act were enforceable only by the creditors.</p> <p>2. Whether the Act of-June 4, 1901, P. L. 404, is inoperative so long as the Federal Bankrupt Statute, July 1, 1898, c. 541, 30 Stat. 544, is in force, not decided.</p>