American Commercial Law Series volume 2

Cover American Commercial Law Series volume 2
American Commercial Law Series volume 2
Alfred William Bays
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months from the time that the preference was given. Insolvency is a necessary element to this act of bankruptcy. A preference may also be set aside by the trustee in bank- ruptcy where the creditor to whom it was paid knew or had reasonable cause to know that preference was intended.
Sec. 110. RIGHT OF INSOLVENT CORPORATION TO MAKE A GENERAL ASSIGNMENT. A corporation may make a general assignment for the benefit of its creditors. But any dissenting creditor can by proceeding in the courts of ba
...nkruptcy have it set aside.
A corporation has power to make a general assign- ment of its assets to a trustee for the benefit of all its creditors. Our National Bankruptcy Law makes that, however, an act of bankruptcy, and voidable by any dis- senting creditor.
Sec. 111. RIGHTS OF SECURED AND LIEN CRED- ITORS. A secured and lien creditor of an insolvent corpora- tion is protected to the extent of his lien and security, except that some liens are dissolved by bankruptcy.
One who takes security for his debt at the time of its inception whether from an individual or a corporation is safe to the extent of the value of that security.


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