A Treatise On the Modern Law of Banking

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Fidelity Sav. Assn., 86 Pac. (Colo.) 1025.
65 Taylor v. Hutchinson, 40 So. (Ala.) 108.
66 Ibid.
804 THE MODERN LAW OF BANKING.
changed its character before a demand for its reclamation, the question is not always easily answered, what can be demanded ?
In one of the recent cases "'' Chief Justice Start has remarked "that a creditor of an insolvent receiving property as a prefer- ence may [not] use it so as to make material gains out of it, or permit it by his negligence to become seriously depr
...eciated in value, and then return it in its depreciated and worthless condition to the assignee in full discharge of his liability. A judgment declaring a preferential transfer void relates back to its date, so that the transferee may be charged with the value of the use of the property and for damages to it while in his possession." Thus an insolvent debtor transferred notes of a third party to a bank, which were a preference. At their ma- turity they were renewed by the maker. Before the maturity of the renewals, both the maker and the bank holding them had failed.

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