Tilt v. Citizens' Trust Co.

Citations

• 191 F. 441
• 1911 U.S. Dist. LEXIS 119

Syllabus

<p>T, Bankruptcy (§ 166*) — Voidable Preference — Notice of Debtor’s Insolvency.</p> <p>A creditor of a bankrupt who took security within four months prior to the bankruptcy with notice of facts which would incite a man of ordinary prudence to inquiry as to the solvency of the debtor is chargeable with notice of all facts which a reasonably diligent inquiry would have disclosed.</p> <p>[K<1. Note. — -For other cases, see Bankruptcy, Gent. Dig. §§ 250-258: Dec. Dig. § 166.*]</p> <p>2, Bankruptcy (§ 303*) — Voidable Preference — NotIce of Insolvency.</p> <p>Evidence considered, and halt! to show that a bank which within four months prior to the bankruptcy of a lumber company, and when it was insolvent, took from such company a large part of its assets, including practically all of the bills receivable taken by it in the course of its busL ness as security for an antecedent indebtedness, without making inquiry</p> <p>> as to its solvency except from the president ’ of the company and its attorney, had reasonable cause to believe that it was insolvent, and intended a preference, which rendered such transfers voidable at suit of the bankrupt’s trustee.</p> <p>(Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 462; Dec, Dig. § 303.*]</p> <p>8. Bankruptcy (§ 161*) — Voidable Preference — Transfers in Execution of Prior Agreement.</p> <p>Transfer of property to a creditor by an insolvent within four months prior to its bankruptcy, which would otherwise constitute a voidable preference, are not deprived of that character by the fact that they were made pursuant to a prior agreement made more than four months before bankruptcy.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 263; Dec. Dig. § 161.*]</p>