W. L. Moody & Co. v. Carroll

Citations

• 71 Tex. 143
• 8 S.W. 510
• 1888 Tex. LEXIS 1116

Syllabus

<p>1. Assignment for Benefit of Creditors.—-When an assignment for the benefit of creditors is made the law becomes part of the deed of assignment and will control the assignee in the administration of the assets, although some of the terms of the deed are at variance with the law.</p> <p>S. Assignment for Benefit of Firm Creditobs.—If it be shown that creditors of the individual members of the firm are in no way provided for in the assignment such omission would not avoid it, and the individual creditors could maintain their rights as creditors against the assignee.</p> <p>3. Sales on Credit.—Where, for advantage of the estate an assignee could be made to sell on credit, and a provision so directing sales would not render an assignment void. (66 Texas, 329, Schooler v. Hutchins.)</p> <p>4. Fraudulent Conveyance.—Nor will a fraudulent conveyance, etc., by creditor affect the assignment. The assignee or creditor may contest such sales.</p> <p>5. Assignment.—Provisions for payment of costs and expenses before payment of creditors, and that if after all creditors are satisfied there be a remnant, that it be restored to the maker, are but provisions which would be supplied by the law and are harmless.</p> <p>6. Garnishment of Assignee.—No creditor can by attachment or garnishment divert the estate in hands of the assignee under, a legal assignment, or subject it to any other than the creditors entitled under the assignment.</p> <p>7. Garnishment of Assignee—Practice.—Garnishment proceedings against an assignee should be held over until accepting creditors are paid so as to allow the garnisher whatever priority of right his proceedings may secure. (Lovenberg v. Bank, 67 Texas, 448.)</p>