Strohl v. Seattle National Bank

Citations

• 25 Wash. 28
• 64 P. 916
• 1901 Wash. LEXIS 360

Syllabus

<p>CORPORATIONS-INSOLVENCY-FRAUDULENT PREFERENCE OF CREDITORS.</p> <p>Where, at the time of the execution of a mortgage by a corporation to secure its indebtedness to one of its creditors, the total indebtedness of the corporation did not exceed sixty-six per cent of a conservative valuation of the corporate assets, and the corporation, at the date of the execution of the mortgage, was doing business, with its affairs in equally as good condition as at any time during its existence, and with every indication of their continuance in the same condition, and it in fact continued to do business for several months thereafter, when it finally became insolvent, such mortgage will not be set aside at the suit of a receiver, on the ground of its being a fraudulent preference by an insolvent corporation.</p>