PAGE.

APPEAL--See WILLS, T.

ASSIGNMENT-See TRADE SECRETS.

ASSIGNMENT FOR CREDITORS-SCC CHATTEL MORTGAGES, 1,

3; INSOLVENT CORPORATIONS, 13.

ASSIGNMENT OF MORTGAGE-The record of an assignment of a mortgage is constructive notice of its existence and contents to one who takes a subsequent mortgage on the premises, and also that the assignor has no authority to procure the cancellation of the assigned mortgage. HIGGINS v. JAMESBURG MUTUAL B. AND L. ASSOCIATION..

ASSOCIATIONS-"An act for winding up voluntary associations and associations with partnership liabilities" (P. L. of 1899 р. 485) does not clothe the chancellor with power to enforce the payment of debts contracted by such associations, by an assessment against the members thereof, in a case where by a previous proceeding in chancery the business in the course of which such debts were contracted had been wound up and the property and assets of such association got in and distributed. HENRY v. SIMANTON

525

606

B

BANKRUPTCY-1. A company was indebted in the sum of $81,200. It owned a brick-producing plant appraised at $100,000, and was capable of earning on the amount at which it was capitalized ($185,000) a fair profit. The plant had cost over $200,000, and could not be replaced for $250,000. The company had on hand a quantity of unburned bricks, later sold for $15,000. It also owned village lots worth $25,000. On its failure to pay a creditor it executed a mortgage to secure him. This creditor, before becoming such, investigated the affairs of the company and believed that the company was solvent. About a month after the execution of the mortgage the company was adjudged a bankrupt, and the trustees could secure only $75,000 for the property. -Held, that the company, at the time of executing the mortgage, was not insolvent, within Bankrupt act of July 1st, 1898, chapter 541, section 1, paragraph 15 (U. S. Comp. Stat. 1901 р. 3419), providing that a person shall be deemed insolvent when the aggregate of his property shall not, at a fair valuation, be sufficient to pay his debts. EMPIRE STATE TRUST Co. v. FISHER Co.

2.- A solvent debtor giving a mortgage to secure a creditor does not give a preference, within Bankrupt act of July 1st, 1898, chapter 541, section 60 (30 Stat. p. 562; U. S. Comp. Stat. 1901 p. 3445), specifying when a person, "on being insolvent," shall be deemed to give a preference. Id...........

BANKRUPTCY-Continued.

3. The taking of security by a creditor for money presently
or previously loaned is not evidence that the creditor believes
that the debtor is insolvent. Id.....

4.

5.

PAGE.

The words "for a present consideration," in Bankrupt act
of July 1st, 1898, chapter 541, section 67 (30 Stat. p. 564; U. S.
Comp. Stat. 1901 p. 3449), providing that liens given or accepted
in good faith, and not in contemplation of or in fraud on the
act, "and for a present consideration," shall not be affected by
the act, do not render invalid a mortgage to secure a pre-existing
debt.

Id......

Under clause e in section 70 of the Federal Bankrupt act,
trustees in bankruptcy may avoid a mortgage made by a New
Jersey corporation which the creditors of the corporation might
avoid under section 64 of the New Jersey Corporation act. P. L.
of 1896 p. 277. EMPIRE STATE TRUST Co. v. TRUSTEES OF
FISHER & Co......

6.- Under section 64 of the New Jersey Corporation act, in-
solvency denotes a general inability to meet pecuniary liabilities
as they mature, by means of either available assets or an honest
use of credit. Id...

7.

A mortgage given merely to secure antecedent debts is not
given "for value," within the meaning of clause e in section 70
of the Federal Bankrupt act, or for "a valuable consideration,"
within the meaning of section 64 of the New Jersey Corporation
act.
Id...

See LANDLORD AND TENANT, 5, 6; MECHANICS' LIENS, 9.

BILLS AND NOTES-1. After the loss of three cashier's checks
the bank offered to pay the amount due thereon, which was not
disputed, on being indemnified against having to pay the original
checks. The payee afterward began a suit at law on the checks
without tendering indemnity.-Held, that equity has jurisdiction
to restrain such suit and to adjust the rights of the parties.
CLINTON NATIONAL BANK v. STIGER....

2. Quære. Has a court of law jurisdiction over a suit on a
lost check? Id..............

See INSOLVENT CORPORATIONS, 4, 5.

BONA FIDE PURCHASERS-A purchaser purchased at a sale
under a mortgage foreclosure decree unimpeachable except as to
the amount due the mortgagee. No notice was given at the sale
of an appeal from an order denying an application for the cor-
rection of the amount adjudged to be due, and the only notice
the purchaser had of such an appeal was such as might be im-
puted to him by the filing of the notice of appeal in the clerk's

88

88

602

602

602

522

522

BONA FIDE PURCHASERS-Continued.

office three days before the sale. The sale was duly confirmed
without objections or exceptions.-Held, that the purchaser was
a bona fide purchaser. STATE MUTUAL B. AND L. ASSOCIATION
v. O'CALLAGHAN...

BUILDING AND LOAN ASSOCIATIONS-An applicant to a
loan association for a $40,000 loan was informed as to the terms
under which loans were made, which were that applicants, on
being accepted, became stockholders, required to pay fees for the
stocks, monthly dues and premiums. He was informed that the
initial payment for premiums and fees would be $1,000. He
accepted the terms and received $39,000.-Held, that $1,000
originally deducted from the loan was a voluntary payment by
the applicant, and hence he was not entitled to any credit there-
for, either on account of principal or interest. STATE MUTUAL
B. AND L. ASSOCIATION v. O'CALLAGHAN..
See FORECLOSURE, 3.

BUILDINGS-See COVENANTS; MECHANICS' LIENS; NUISANCE,
1-7; TRUSTS AND TRUSTEES, 2-6.

PAGE.

103

103

CASES CRITICISED,

C.

Anderson v. Anderson Food Co., 66 N. J. Eq. 209.

Affirmed

730

Atlantic City v. New Auditorium Pier Co., 67 N. J. Eq. 284.

Catholic Benevolent Legion v. Murphy, 65 N. J. Eq. 60.

Affirmed

723

Charlton r. Columbia Real Estate Co., 64 N. J. Eq. 631.

Reversed

629

De Gray v. Monmouth Beach Club House Co., 50 N. J. Eq. 329.

Affirmed

731

Evans v. New Auditorium Pier Co., 67 N. J. Eq. 315.

In re Vineland Historical and Antiquarian Society, 66 N. J.

Eq. 291.

Affirmed

730

CASES CRITICISEI)-Continued.

PAGE.

International Silver Co. r. Rogers Corporation, 66 N. J. Eg. 119.

Reversed

646

International Silver Co. r. Rogers Corporation, 66 N. J. Eq. 140.

State Mutual Building Loan Association v. Batterson, 65 N.

CHARITIES-1. Words seemingly appropriate to a condition only
may introduce a covenant, a condition or a declaration of trust,
and the whole clause, in its form and scope, must be considered
in order to determine within which class it should fall. MAC-
KENZIE 2. TRUSTEES OF PRESBYTERY OF JERSEY ('ITY......... 602

2.

All of the words in the clause in question being considered.
and the absence of words of determination or reverter being
noticed, the intent of the parties, to be exercised as permitted
by the principles of law, will be best subserved by holding the
clause to be a declaration of trust.

Id...........

3. The trust which is thus declared is for public worship and
instruction for the benefit of an indefinite number of persons,
according to Presbyterian faith and polity, with certain added
provisions, now not to be weighed; nevertheless, the trust ap-
pears to be good, as a charity, in both its primary and secondary
limitations. Id.....

1.-

5.

Such a trust is enforceable, in this state, either exactly or
under the doctrine of cy pres, approximately. Id.....

Upon their own showing, the present complainants have no
standing in court by right of a reverter, or as being in themselves
possible beneficiaries, or under the doctrine of visitation: only
the attorney-general, by way of information, or the presbytery.
by bill exhibited by and through the body charged with the duties

652

652

652

CHARITIES-Continued.

PAGE.

of trusteeship, can properly invoke the superintending power of
the courts over the administration of the trust. Id............ 652

6. The decree of the court of chancery must be reversed, and
the bill should be dismissed. Id..........

CHATTEL MORTGAGES-1. Under an involuntary assignment
the receiver or assignee may set aside a chattel mortgage for
fraud, or for the neglect of the mortgagee to have it recorded
according to the requirement of the statute. WIMPFHEIMER
t. PERRINE

2. By virtue of the ninth section of the Chattel Mortgage act
of May 2d, 1885, the mortgagee will have priority over all cred-
itors of the mortgagor, where the debt or obligation is incurred
after the mortgage is recorded, although it is not recorded im-
mediately. Id......

3.

Where there is a voluntary assignment by the mortgagor
for the equal benefit of creditors the assignee may set aside the
chattel mortgage given by the mortgagor, when it is fraudulent,
to the extent that the property is needed for the payment of
debts, but he cannot intervene to set it aside when it is given in
good faith for value, because the mortgagee has failed to record
it as the statute requires. Id......

4.-

Creditors of the mortgagor who have claims in their own
right before the chattel mortgage is recorded, or who acquire by
assignment claims which accrued before the mortgage is recorded,
will be entitled to priority over the mortgagee, and may on re-
covery of judgment assert their rights, notwithstanding a volun-
tary assignment by the mortgagor for the equal benefit of cred-
itors. Id.

652

597

597

397

597