Van Brocklin v. Queen City Printing Co.

Citations

• 19 Wash. 552
• 53 P. 822
• 1898 Wash. LEXIS 423

Syllabus

<p>INSOLVENT CORPORATION — PREFERENCE TO CREDITOR — CHATTEL MORTGAGE.</p> <p>A chattel mortgage given by an insolvent corporation to a creditor for the purpose of preferring the mortgagee over other creditors is void.</p> <p>'Where the notes of an insolvent corporation are given to a stockholder in consideration of a purchase of his stock, not for the benefit of the corporation, but for that of a third person, such stockholder is not entitled to share in the assets of the corporation in the hands of a receiver, until after the claims of all other creditors, except those of stockholders for shares of capital stock, have been satisfied.</p>