Van Kirk v. Vermont Slate

Citations

• 140 F. 38
• 1905 U.S. Dist. LEXIS 72

Syllabus

<p>1. Bankruptcy — Life Insurance Policies — Effect of Bankrupt’s Death.</p> <p>The right of a bankrupt to a life insurance policy having a cash surrender value provided for in the contract on payment of such value to the trustee as provided in Bankr. Act July 1, 1898, e. 541, § 70a (5), 30 Stat. 566 [U. S. Comp. St. 1901, p. 3451], is not affected by his death after adjudication, but passes to his legal representatives; nor is such right lost by the failure of the bankrupt or such representatives to make a tender of the surrender value until the expiration of 30 days after such value has been ascertained and stated to the trustee by the company.</p> <p>2. Same — Policies Having Cash Surrender Value.</p> <p>The proviso to Bankr. Act July 1, 1898, e. 541, § 70a (5), 30 Stat. 566 [U. S. Comp. St. 1901, p. 3451], giving a bankrupt the right to retain ‘‘any insurance policy which has a cash surrender value” on payment of such value to the trustee, applies only to policies which, by their provisions, give the bankrupt the right to surrender the same and receive a fixed or ascertainable sum therefor, and policies giving no such contract right pass to the trustee as assets of the estate as of the date of adjudication, free from any right or claim of the bankrupt.</p> <p>3. Same — Valid Pledge of Policy — Rights of Pledgee.</p> <p>A bona fide assignee of life insurance policies pledged more than four months before the bankruptcy of the pledgor is entitled to hold the same against the trustee in bankruptcy, and on application to the court to have their value determined pursuant to Bankr. Act July 1, 1898, c. 541, § 57h, . 30 Stat. 560 [U. S. Comp. St. 1901, p. 3443], for the purpose of fixing the credit to be made on his claim.</p> <p>4. Same — Death of Bankrupt Pledgor After Adjudication — Rights of Parties in Interest.</p> <p>More than four months prior to his bankruptcy the bankrupt made a bona fide assignment of three life insurance policies as security for a debt, one o