they would have if a general liability instead of a resulting trust had been declared. So debts are an equitable lien upon property fraudulently transferred by the debtor, and it may be said that every debtor is a trustee for his creditors, and bound to use his property for their benefit, and that creditors have an equitable lien upon the property of the debtor. But in all these cases the usual remedies are to be pursued to create and force the lien before a specific charge creating an incumbrance is created. A creditor can not enforce the liability of a resulting trust under the statute without a preliminary judgment and execution. Before the equitable interests of a debtor can be reached in equity, all available legal remedies must be exhausted. Neither a judgment nor execution constitutes a lien upon equitable interests. The commencement of the equitable action and the filing of the lis pendens are necessary for that purpose. Ocean Nat'l. Bank v. Olcott, 46 N. Y. 12.

It is an easy matter for parties to go through the form of paying and receiving money in the presence of witnesses. This is the common device of parties contriving a fraud, but endeavoring to fortify themselves with the evidence of good faith. So, too, the placing of the device “agt." on the sign is so generally the cover of fraud, that so far from freeing the transaction from suspicion, it only serves to awaken it. When the parties are competent witnesses in the cause, but do not testify or offer any explanation of the transaction, it is a sound rule, sustained by reason as well as by authority, that the presumption is, that the evidence in their possession, if given, would be in corroboration of that which has already been given against them. In re Hussman, 2 B. R. 437; s. c. 2 L. T. B. 53; s. c. 1 C. L. N. 177.

A conveyance which is made by an insolvent to a relative of nearly all his property for an inadequate price, for the purpose of putting it out of the reach of his creditors, and which is absolute in form, but in fact on secret trust for the benefit of the grantor and such creditors as he may see fit to select, and which is kept from record for nearly a year, has nearly every badge of fraud. In re J. H. C. Lutgens, 7 Pac. L. R. 89.

Evidence of prior transactions between the same parties which tends to show the consideration of the conveyance and the inducements which led the debtor to make it, bears directly upon the question whether it was made in good faith or in fraud of creditors, and is admissible. Knowlton v. Moseley, 105 Mass. 136.

When goods covered by a bill of sale are left upon the premises of the original owner in charge of a person partially employed by him, the transfer is valid when there is no evidence that a creditor or a purchaser has been misled or deceived thereby. Jenkins v. Mayer, 3 B. R. 776; s. c. 2 Biss. 303.

A judgment confessed upon a defective statement is not absolutely void, but only so as to creditors who have a lien upon the property sought to be affected by the judgment. It has, indeed, been ruled that even as against lien creditors, the insufficiency of statement is only prima facie evidence of fraud, and that it is admissible to support the judgment by proof that the transaction was in good faith and the judgment confessed

upon an actual existing debt. The bankruptcy act must be construed as giving the creditors who prove their debts, from and after the filing of the petition, such a direct interest in the property or assets of the bankrupt as to enable them, or the assignees for them, to attack such a judgment as fraudulent in law or fact, even though their claims do not consist of judgments. In re Price Fuller, 4 B. R. 115; s. c. 1 Saw. 243.

The statutes requiring chattel mortgages to be filed in the office of the county recorder, do not make a mortgage valid which would otherwise be void as to creditors. It would be a serious drawback to all trading operations, if a dealer were obliged to search the files of the recorder's office to ascertain whether there is a mortgage on property held out to the world by a party as his own. In re Manly, 3 B. R. 291; s. c. 2 Bond, 261; s. c. 2 L. T. B. 89; Robinson v. Elliott, 11 B. R. 553; s. c. 22 Wall. 513.

No acts of the assignor, after the assignment, can invalidate it, or afford any evidence from which fraud in fact can be legitimately inferred. When a conveyance is not fraudulent at the time of the making of it, it shall never be said to be fraudulent for any matter ex post facto. Beck v. Parker, 65 Penn. 262.

The title of a fraudulent grantee is good against all parties except the assignee and creditors. A tenant can not defeat the title of the grantee by showing fraud in a transfer by his landlord, at least until he has been notified by the landlord's assignee of a claim for the property. Until such notice the tenant can not be held liable to the assignee for rent. Steadman v. Jones, 65 N. C. 388.

Although an indorsement on a mortgage to the effect that it shall cover property acquired after its execution is made for the purpose of defrauding creditors, yet it will not affect the validity of the original mortgage. Whithed v. Pillsbury, 13 B. R. 241.

The assignee has no greater rights than the judgment creditor, and a bona fide purchaser from a fraudulent grantee will be protected, although his purchase was made after the appointment of the assignee. Beall v. Harrell, 7 B. R. 400; s. c. 1 Woods, 476; Murray v. Jones, 50 Ga. 109.

If the purchaser has notice of facts sufficient to put him on the inquiry, he is not a bona fide purchaser. Beall v. Harrell, 7 B. R. 400; s. c. 9 B. R. 49; s. c. 17 Wall. 590.

Although a gift is void, a mortgagee who makes a loan in good faith gets a good title. Sedgwick v. Place, 10 B. R. 28; s. c. 12 Blatch. 163.

A mortgagee who takes his mortgage to secure a desperate debt due by the donor, is not a purchaser for value if he is aware of the defects of the title. Ibid.

A party who, after the commencement of proceedings in bankruptcy, purchases at a sale under a fraudulent execution, does not obtain a valid title as against the assignee. Ibid.

If the donee has sold the property, the assignee may recover the value from him. Ibid.

To constitute a bona fide purchaser, he must be without notice of the fraud, not only at the time of the purchase, but also at the time of the

actual payment of the consideration. Marsh v. Armstrong, 11 B. R. 125; · s. c. 20 Minn. 81.

The lien of a judgment rendered after the making of a fraudulent conveyance, and before the commencement of the proceedings in bankruptcy, is preserved, and is entitled to priority when the conveyance is set aside. Codwise v. Gelston, 10 Johns. 507.

When a fraudulent deed is set aside, the property should be turned over to the assignee. Sands v. Codwise, 4 Johns. 536.

When a fraudulent conveyance of land is set aside, all the stock and grain, except such as the law exempts, will be considered assets.

Keating

v. Keefer, 5 B. R. 133; s. c. 1 L. T. B. 266; s. c. 4 L. T. B. 162. The account for rents and profits should only be taken from the time of filing the petition in bankruptcy. Sands v. Codwise, 4 Johns. 536. Expenditures may be set off against rents and profits. Ibid.

A person who takes a mortgage from a fraudulent grantee has no right to sell the property after notice of the claim of the grantor's assignee. Brooks v. D'Orville, 7 Ben. 485.

If a party in good faith takes a mortgage for a valuable consideration from a fraudulent grantee, it will be valid against the assignee. Ibid.

ACT OF 1898, CH. 5, * * * § 47. Duties of Trustees.(a) Trustees shall respectively (1) account for and pay over to the estates under their control all interest received by them upon property of such estates; (2) collect and reduce to money the property of the estates for which they are trustees, under the direction of the court, and close up the estate as expeditiously as is compatible with the best interests of the parties in interest; (3) deposit all money received by them in one of the designated depositories; (4) disburse money only by check or draft on the depositories in which it has been deposited; (5) furnish such information concerning the estates of which they are trustees and their administration as may be requested by parties in interest; (6) keep regular accounts showing all amounts received and from what sources and all amounts expended and on what accounts; (7) lay before the final meeting of the creditors detailed statements of the administration of the estates; (8) make final reports and file final accounts with the courts fifteen days before the days fixed for the final meetings of the creditors; (9) pay dividends within ten days after they are declared by the referees; (10) report to the courts, in writing, the condition of the estates and the amounts of money on hand, and such other details as may be required by the courts, within the first month after their appointment and every two months thereafter, unless otherwise ordered by the courts; and (11) set apart the bankrupt's exemptions and report the

items and estimated value thereof to the court as soon as practicable after their appointment.

(b) Whenever three trustees have been appointed for an estate, the concurrence of at least two of them shall be necessary to the validity of their every act concerning the administration of the estate.

ACT OF 1898, CH. 7, § 61. Depositories for Money.— (a) Courts of bankruptcy shall designate, by order, banking institutions as depositories for the money of bankrupt estates, as convenient as may be to the residences of trustees, and shall require bonds to the United States, subject to their approval, to be given by such banking institutions, and may from time to time as occasion may require, by like order increase the number of depositories or the amount of any bond or change such depositories.

ACT OF 1867, § 5047. The assignee shall have the like remedy to recover all the estate, debts, and effects in his own name as the debtor might have had if the decree in bankruptcy had not been rendered and no assignment had been made. If, at the time of the commencement of the proceedings in bankruptcy, an action is pending in the name of the debtor for the recovery of a debt or other thing which might or ought to pass to the assignee by the assignment, the assignee shall, if he requires it, be admitted to prosecute the action in his own name, in like manner and with like effect as if it had been originally commenced by him. And if any suit at law or in equity, in which the bankrupt is a party in his own name, is pending at the time of the adjudication of bankruptcy, the assignee may defend the same in the same manner and with the like effect as it might have been defended by the bankrupt.

Statute revised March 2, 1867, ch. 176, §§ 14, 16, 14 Stat. 523, 524. Prior Statutes - April 4, 1800, ch. 19, § 13, 2 Stat. 25; Aug. 19, 1841, ch. 9, § 3. 5 Stat. 442.

During pendency of a bill in equity brought by the assignee for the redemption and sale of the bankrupt's real estate, an incumbrancer will not be allowed by redeeming to acquire any absolute title to the property, to exclusion of assignee or the other incumbrancers. In re Longfellow, 17 B. R. 27.

Where the assignee has used the general funds of the estate to redeem the real estate of the bankrupt, at request of the subsequent incumbrancers, the amount so paid should be refunded out of the proceeds of sale of the premises. Ibid.

Assignee can not maintain a suit in equity to obtain possession of property alleged to belong to the estate. The remedy is at law. In re The Oregon Iron Works, 17 B. R. 404.

An assignee of corporate stock who has caused it to be transferred to himself on the books of the company, and holds it as a collateral security for a debt due from his assignor, is liable for the unpaid balances thereon. Pullman v. Upton, Assignee, 17 B. R. 489.

Assignee can not reclaim money deposited for a special purpose, in which the person holding the deposit has acquired a vested interest. Newcomb v. Launtz, 18 B. R. 276.

The assignee may redeem property of the bankrupt, which has been sold on execution to the judgment creditor, without paying the unsatisfied balance of the judgment, or taking the property subject to the lien of such judgment. Lloyd, Assignee, v. Hoo Lue et al., 17 B. R. 170.

Under the law of 1867, held, that a register had no authority to set off exempt property to the bankrupt, nor to direct assignee in the matter. In re Peabody, 16 B. R. 243.

An objection, that the assignee did not obtain permission from the bankruptcy court to bring the suit, is of no avail unless it is pleaded. Avery v. Ryerson, 34 Mich. 362.

If the assignee of a mortgagee who held a second mortgage, dies after the entry of a decree pro confesso, for want of an appearance, and before a final decree in a proceeding to foreclose a prior mortgage, the sale will not affect the second mortgage. Ibid.

If the assignee is finally discharged after more than two years from the time of his appointment, he is not a necessary party to an action by a creditor, instituted before the commencement of the proceedings in bankruptcy, to set aside a fraudulent conveyance. Phelps v. Curts, 16 B. R. 85. Original Suits. This provision is limited by the preceding section. The assignee can only sue for the property or rights of action which pass to him as assignee, and can only prosecute actions of a like character in his own name. Noonan v. Orton, 12 B. R. 405; s. c. 34 Wis. 259.

The statement in a complaint that the plaintiff is assignee may be treated as surplusage, or at most as descriptio personae, and may be disregarded. Dambmann v. White, 12 B. R. 438; s. c. 48 Cal. 439.

It is not necessary to allege in detail the adjudication, the appointment of assignee, and the assignment and record thereof. As in the case of an executor or administrator, it is only necessary to state assignee

of the estate of, duly adjudged a bankrupt according to the statute in such case made and provided. Ethridge v. Jackson, 19 I. R. R. 134; s. c. 7 Pac. L. R. 132; Wheelock v. Lee, 10 B. R. 363; s. c. 64 N. Y. 242; Hastings v. Fowler, 2 Ind. 216.

The assignee's title to the bankrupt's estate, and right to sue therefor, are derived from the assignment, and hence a copy of the assignment need not be procured before the institution of a suit. Rogers v. Stevenson, 16 Minn. 68.

After the execution of a deed of assignment the bankrupt is entirely divested of his property, and the same is vested in his assignee. The whole estate is conveyed by the assignment, and there is no residuary interest in the bankrupt. It results as a necessary legal consequence that the assignee may and alone can maintain ejectment. His is the