FRAUDULENT CONVEYANCES - CONTINGENT CREDITORS - BANK STOCKHOLDERS' DOUBLE LIABILITY

Authors

Charles V. Beck Jr., University of Michigan Law SchoolFollow

Abstract

A holder of bank stock conveyed real estate to her daughter in consideration of love and affection, leaving the grantor with no other assets than the bank stock. At the time, the bank stock had a market value of eleven dollars a share, and the bank was advertising for depositors; there was nothing in the record to indicate insolvency. About two years later the bank closed, and the superintendent of banks assessed the stockholders the amount of their statutory double liability. When the transfer was discovered the superintendent brought action to set aside the conveyance as fraudulent to the creditors of the bank. Held, that the bank creditors, because of the stockholders' double liability, were at the time of the conveyance creditors of the grantor within the meaning of the statute; the bank superintendent, as representative of the creditors, could therefore set aside the conveyance as fraudulent to them. Squire, Supt. of Banks v. Cramer, 64 Ohio App. 151, 28 N. E. (2d) 516 (1940).

Recommended Citation

Charles V. Beck Jr., FRAUDULENT CONVEYANCES - CONTINGENT CREDITORS - BANK STOCKHOLDERS' DOUBLE LIABILITY, 39 Mich. L. Rev. 324 (1940).
Available at: https://repository.law.umich.edu/mlr/vol39/iss2/17