White v. Bradley Timber Co.

Citations

• 119 F. 989
• 1902 U.S. Dist. LEXIS 287

Syllabus

<p>3. Act op Bankruptcy—Failure to Discharge Lien—Intent.</p> <p>Under Bankr. Act, § 3, cl. 3 [U. S. Comp. St. 1901, p. 3422], providing that acts of bankruptcy by a person shall consist- of his having “(3) suffered or permitted, while insolvent, any creditor to obtain a preference through legal proceedings,” the intent of the insolvent is immaterial; and when an insolvent corporation fails to cause a preference by legal proceedings obtained by one creditor to be vacated or discharged by showing that the claim is illegal or unfounded, or by paying the debt, such insolvent commits an act of bankruptcy.</p> <p>¶1. See Bankruptcy, vol. 6, Cent. Dig. § 82.</p>