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on whom his estate devolves in trust for the benefit of others
than himself, and against purchasers or encumbrancers in
good faith subsequent to the transfer;

[Exception.] Provided, however, that the provisions of
this section shall not apply to the transfers of wines in the
wineries or wine cellars of the makers or owners thereof, or

1678



Tit.il.] PRESUMING FRAUD. § 3440

other persons having possession, care, and control of the
same, and the pipes, casks, and tanks in which the said
wines are contained, which transfers shall be made in writ-
ing, and certified and verified in the same form as provided
for chattel mortgages and which shall be recorded in the
book of miscellaneous records in the office of the county
recorder of the county in which the same are situated;

[Public recordation required.] Provided, also, that the
sale, transfer, or assignment of a stock in trade (or of such
a quantity of a stock in trade as to be substantially a whole)
in bulk, or in any manner otherwise than in the ordinary
course of trade and in the regular and usual practice and
method of business of the vendor, transferer, or assignor,'
will be conclusively presumed to be fraudulent and void as
against the existing creditors of the vendor, transferer, or
assignor, unless at least five days before the consummation
of such sale, transfer, or assignment the vendor, transferer,
or assignor, or the intended vendee, transferee, or assignee
shall record in the office of the county recorder in the county
or counties in which the said stock in trade is situated, a
notice of said intended sale, transfer, or assignment, stating
the name and address of the intended vendor, transferer, or
assignor, the name and address of the intended vendee, trans-
feree, or assignee, and a general statement of the character
of the property or merchandise intended to be sold, assigned, or
transferred, and the date when, and the place where, the
purchase price, if any there be, is to be paid.

[Sales at public aiictlou.] Provided, nevertheless, that if
such intended sale is to l)e at public auction the notice above
required to be recorded shall state that fact, the time, terms,
and place of said sale, the names and adresses of the vendor
and auctioneer, and a general statement of the character of
the property or merchandise intended to be sold; but such
sale shall in no event occur within five days of the date
of recordation of said notice;

[Trausfers under order of court.] Provided further, that
the provisions of this section shall not apply or extend to

1679



§ 3440 CIVIL CODE. [Div.IV,Pt.II.

any sale, transfer or assignment made under the direction or
order of a court of competent jurisdiction, or by any execu-
tor, administrator, guardian, receiver, or other officer or per-
son acting in the regular and proper discharge of official
duty, or in the discharge of any trust imposed upon him by
law, nor to any transfer or assignment made for the benefit
of creditors generally, nor to any sale, transfer or assign-
ment of any property exempt from execution.

History: Enacted March 21, 1872; amended March 12, 1895,
Stats, and Amdts. 1895, p. 47; March 10, 1903, Stats, and Amdts.
1903, pp. 111-112.

See Kerr's Cyc. C. G. for 121 pars, annotation.

53 C. 401, 402 (construed); 53 C. 623, 625 (construed); 56 C.
330, 333, 334 (applied); 61 C. 640, 642 (applied); 63 C. 3, 4 (re-
ferred to); 63 C. 242, 245 (applied); 63 C. 494, 496 (construed);
64 C. 78, 79, 28 P. 60 (applied); 67 C. 283, 284, 7 P. 699 (cited);
7 P. 768 (applied); 9 P. 651 (applied); 69 C. 247, 249, 10 P. 400,
402 (applied); 70 C. 560, 563, 12 P. 467, 468 (construed and ap-
plied) ; 13 P. 492, 493 (applied — sale invalid against execution
obtained by vendor's creditor); 73 C. 211, 212, 14 P. 780 (ap-
plied); 73 C. 320, 323, 14 P. 876, 877 (applied); 73 C. 399, 401, 15
P. 24 (applied); 74 C. 46, 47, 15 P. 369, 370 (construed); 74 C.
376, 379, 16 P. 194, 195 (applied); 76 C. 166, 168, 18 P. 242, 243
(applied); 76 C. 305, 307, 18 P. 327, 328 (applied); 76 C. 457, 459,
18 P. 421, 423 (applied); 76 C. 537, 540, 9 A. S. 245, 18 P. 658, 659
(construed); 77 C. 241, 244, 19 P. 482, 483 (applied); 77 C. 544, 546,
20 P. 71, 72 (construed and applied); 78 C. 113, 114, 116, 20 P. 296
(applied); 81 C. 93, 96, 97, 15 A. S. 34, 22 P. 331, 332, 5 L. 579
(construed and applied); 22 P. 1132, 1133, 1134 (applied); 84 C.
168, 170, 171, 24 P. 167 (construed and applied); 84 C. 244, 249,

24 P. 118, 119 (applied); 84 C. 554, 557, 24 P. 169, 170 (referred
to); 89 C. 286, 289, 296, 303, 26 P. 873, 874, 876, 879, 13 L. 576
(construed and referred to); 89 C. 501, 503, 26 P. 1077, 1078
(what constitutes "immediate delivery," or "actual and con-
tinued change of possession," is question of fact); 91 C. 288, 295,

25 A. S. 180, 27 P. 668, 670 (applied); 92 C. 76, 79, 28 P. 46, 47
(applied); 93 C. 393, 394 (applied but erroneously cited as § 3340),
29 P. 70 (same error); 94 C. 180, 187, 29 P. 495 (referred to in
dis. op. — rights of assignee for benefit of creditors in case of
fraudulent conveyance); 94 C. 523, 525, 29 P. 961 (applied); 95 C.
262, 265, 267, 29 A. S. Ill, 30 P. 538 (construed and applied); 30
P. 792 (construed and applied); 31 P. 530 (applied); 31 P. 620,
622 (construed); 98 C. 454, 459, 33 P. 335, 336 (construed); 99
C. 340, 343, 33 P. 906, 907 (applied); 101 C. 238, 240, 35 P. 772

1680



rpji- jj -j PRESUMING FRAUD. § 3440

(construed and applied); 102 C. 547, 550, 552, 41 A. S. 200, 36
P 857 (applied); 107 C. 67, 75, 76, 40 P. 42 (construed and ap-
plied)" 107 C. 144. 148, 40 P. 37 (applied); 109 C. 156, 158, 41 P.
862 (construed and applied); 109 C. 197, 200, 201, 202, 41 P. 1008
(construed and applied); 112 C. 8, 13, 53 A. S. 151, 44 P. 3o7
(applied); 44 P. 795, 796 (applied); 114 C. 289, 293, 46 P. 95
(construed); 114 C. 526, 529, 535, 536, 43 P. 613. 46 P. 460 (re-
ferred to); 47 P. 52 (applied); 115 C. 316, 325, 326, 47 P. 47, 1095,
36 L. 505 (applied in dis. op.); 116 C. 670, 677, 48 P. 911 (sale
fraudulent and void as to existing creditors); 117 C. 37, 40, 48
P. 978 (applied); 117 C. 42, 47, 48 P. 972 (applied); 117 C. 140,
146 48 P. 1025 (referred to in quoting §3442); 119 C. 80, 82, 51
P 15 (applied); 121 C. 240, 242, 53 P. 692 (referred to); 54 P.
735 736 (applied); 55 P. 251, 252 (construed); 122 C. 468, 470,
68 A S. 47, 55 P. 253 (applied); 122 C. 547, 550, 55 P. 404 (ap-
plied); 123 C. 312, 315, 69 A. S. 60, 55 P. 990 (construed); 124
C. 200, 202, 203, 204, 71 A. S. 42, 56 P. 880 (applied); 125 C. 183,
187, 188, 57 P. 897 (applied); 126 C. 557, 558, 559, 58 P. 1044
(what is necessary to make sale of personal property good as
against creditors and to avoid presumption of fraud); 127 C.
230, 231, 59 P. 583 (applied); 127 C. 290, 296, 297, 298, 303, 308,
31l' 312 53 P. 911, 59 P. 827, 46 L. 371 (referred to with § 2957);
128*0. 35, 37, 60 P. 462 (construed); 128 C. 322, 326, 60 P. 847
(applied)- 69 P. 1061, 1063 (without change of possession, sale is
void as to creditors of seller); 143 C. 282, 283, 76 P. 1029 (con-
strued and applied); 1 C. A. 648, 649, 82 P. 1067 (applied— sale
of hay is valid when); 2 C. A. 233, 235, 236, 83 P. 280 (applied-
sale of stock in trade is void unless notice is recorded) ; 4 C. A.
585, 587, 88 P. 725 (construed — under this section, transfer must
not only be fraudulent, but it must be made with intent to de-
fraud creditors); 6 C. A. 755, 758, 760, 93 P. 284 (not applicable
where seller is not indebted); 11 F. 410 (applied— sale— suffi-
cient delivery and change of possession).

As to effect as against creditors of retaining possession after
sale, see 1 A. D. 454; 6 A. D. 288; 13 A. D. 691; 14 A. D. 308; 14
A. D. 383; 15 A. D. 71; 20 A. D. 639; 31 A. D. 450; 50 A. D. 326;
72 A. D. 635; 80 A. D. 789; 85 A. D. 186; 9 L. 645; 31 L. 635.

As to effect of retention of possession by mortgager, see 26 A.
D. 639, 663.

As to fraudulent intent as question of fact or law, see Kerr's
Cyc. C. C. § 3442 notes 3-9.

As to immediate delivery and actual and continued change of
possession being question of fact, see Kerr's Cyc. C. C. § 3440.
note part IV.

As to necessity of delivery of possession of property as against
creditors, see 9 A. D. 357; 12 A. D. 470; 29 A. D. 362; 69 A. D. 90.
As to persons entitled to attack transfers, see Kerr's Cyc. C.
C. § 3439 note subd. 4.

1681



§ 3441 CIVIL CODE. [Div.IV.Pt.II.

As to sufficiency of delivery and change of possession after
sale as against creditors and subsequent purchasers, see 97 A.
D. 340, 345; 15 A. S. 694.

As to validity of inortgage where mortgaged property is left
in possession of mortgager, see 59 A. D. 535.

§3441. CREDITOR'S RIGHT MUST BE JUDICIALLY
ASCERTAINED. A creditor can avoid the act or obligation
of his debtor for fraud only where the fraud obstructs the
enforcement, by legal process, of his right to take the prop-
erty affected by the transfer or obligation.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 18 pars, annotation.

9 P. 545, 546 (cited); 93 C. 283, 286, 28 P. 1045, 1046 (applied);
95 C. 524, 525, 532, 29 A. S. 149, 30 P. 765 (construed); 132 C. 609,
613, 64 P. 995 (applied); 150 C. 737, 740, 90 P. 116 (construed with
§ 3442 — what transfer is prima facie evidence of fraud); 3 C. A.
651, 656, 86 P. 978 (transfer of homestead cannot be held fraudu-
lent as matter of fact when); 4 C. A. 585, 587, 588, '88 P. 725
(cited and applied with other sections — convej^ance of home-
stead).

As to action for damages by creditor against fraudulent ven-
dee, see 47 L. 433.

As to appointment of receiver to take charge of property
fraudulently conveyed as against creditor, see 72 A. S. 62.

As to indictability of combination to dispose of property of
debtor for purpose of defrauding his creditors, see 51 A. D. 86.

As to loss of homestead of fraudulent conveyance by husband
to wife, see 31 A. R. 645, 756.

As to parties defendant in action to set aside fraudulent con-
veyance, see 15 A. D. 427.

As to proceedings to have fraudulent conveyance set aside,
see 75 A. D. 360; 69 A. S. 221.

As to necessity of proceeding to set aside fraudulent sale, see
17 A. D. 185.

As to necessity to exhaust legal remedy before resorting to
equity, see 72 A. D. 384.

As to right of wife to claim homestead on property, convey-
ance of which has been set aside as fraudulent to creditors, see
40 A. R. 757.

As to validity of conveyance by partner of partnership prop-
erty to pay individual debts as against partnership creditors, see
30 A. R. 535.

As to validity of conveyance of exempt property, see 20 A.
R. 150.

1682



Tit.II.] DETERMINING FRAUD. § 3442

§3442. QUESTION OF FRAUD, HOW DETERMINED.

In all cases arising under section twelve hundred and twenty-
seven, or under the provisions of this title, except as other-
wise provided in section thirty-four hundred and forty, the
question of fraudulent intent is one of fact and not of law;
nor can any transfer or charge be adjudged fraudulent solely
on the ground that it was not made for a valuable consideration ;
provided, however, that any transfer or encumbrance of prop-
erty made or given voluntarily, or without a valuable consid-
eration, by a party while insolvent or in contemplation of
insolvency, shall be fraudulent, and void as to existing cred-
itors.

History: Enacted March 21, 1872; amended Marcli 26, 1895,
Stats, and Amdts. 1895, pp. 154-5; amended by Code Commis-
sion, Act March 6, 1901, Stats, and Amdts. 1900-1, p. 422, held
unconstitutional, see history, § 4 ante.

See Kerr's Cyc. C. C. for 53 pars, annotation.

54 C. 628, 629 (applied); 65 C. 343, 344, 4 P. Ill (applied); 13 P.
166, 167 (applied); 74 C. 541, 543, 16 P. 317, 318 (applied); 83 C.
368, 371, 23 P. 389, 391 (applied); 84 C. 505, 508. 24 P. 286, 288
(question of fraud is question of fact, that is, a question of
intent); 25 P. 404 (applied); 89 C. 286, 289, 293, 296, 26 P. 873.
875, 876, 13 L. 576 (applied); 92 C. 617, 622, 28 P. 557, 558 (ap-
plied); 93 C. 283, 286, 28 P. 1045 (applied); 104 C. 221, 223, 37
P. 889 (applied); 109 C. 662, 671, 42 P. 303 (applied); 117 C. 140,
146, 148, 150, 48 P. 1025 (applied — reading of section prior to
amendment); 118 C. 432, 434, 50 P. 660 (applied); 122 C. 114,
117, 54 P. 536 (applied); 54 P. 849, 850 (construed); 122 C. 655.
658, 68 A. S. 73, 55 P. 605 (applied); 126 C. 636, 638, 639. 59 P. 137
(applied); 126 C. 644, 652, 59 P. 143 (construed); 140 C. 615, 619,
620, 623, 74 P. 303, 304 (construed); 141 C. 624, 627, 75 P. 323
(construed); 144 C. 709; 711, 78 P. 263 (applied); 145 C. 223, 226.
78 P. 649 (applied); 150 C. 737, 740, 741, 90 P. 116 (applied-
right of subsequent creditor to attack conveyance on ground
that it is fraudulent as to him); 152 C. 188, 189, 92 P. 177 (effect
of- conveyance, before amendment of section, made witliout valu-
able consideration); 3 C. A. 358, 362, 85 P. 169 (applied — deed
by insolvent corporation to ex-dlrector — insolvency); 4 C. A.
585, 587, 88 P. 725 (this section must be construed with limita-
tions provided in ^3441); 6 C. A. 755, 758, 760. 93 P. 284 (not
applicable where seller Is not Indebted).

As to allegation and proof as to fraudulent transfers, see
69 A. S. 74.

1683



§ 3442 CIVIL CODE. [Div.IV,Pt.II.

As to answer in action attacking transfer as fraudulent, see
20 A. D. 315.

As to burden of proof as to fraudulent conveyances, see 11 A.
S. 758; 31 L. 646.

As to burden of proof as to voluntary conveyances, see 53
A. S. 63.

As to consideration for voluntary convej^ance, see 13 L. 640.

As to evidence of fraud, see 53 A. S. 62; 53 A. S. 223: 66 A. S. .
649.

As to fraudulent conveyance by father to son, see 21 A. D.
432; 26 A. D. 385.

As to fraudulent intent being question of fact, see Kerr's Cyc.

C. C. § 3442, note pars. 41-43; 11 A. S. 757; 9 L. 417.

As to immediate delivery and actual and continued change
of possession as question of fact, see Kerr's Cyc. C. C. § 3440
subd. 4 and note.

As to invalidity of voluntary conveyance as against creditors,
see 8 A. D. 537; 14 A. D. 704; 84 A. D. 163; 28 A. R. 721; 1 L. 519;
9 L. 413.

As to invalidity of voluntary conveyance as against subse-
quent bona fide purchasers from vendor, see 50 A. D. 326.

As to marriage as consideration for conveyance, see 7 A. D.
362.

As to presumption of fraud from relationship of parties to
conveyance, see 7 A. S. 83.

As to presumption of fraud in voluntary conveyance, see 72 A.

D. 384; 1 L. 520.

As to validity of agreements between husband and wife as
against creditors, see 58 A. S. 492.

As to validity of antenuptial agreement, see 40 A. R. 622.

As to validity of conveyance for future support as against
creditors, see 62 A. S. 581.

As to validity of conveyance from husband to wife, see 88 A.
D. 54; 90 A. S. 497; 20 A. S. 715.

As to validity of sale by insolvent, see 63 A. D. 172.

As to validity of settlement between husband and wife at-
tending divorce suit as against creditors of husband, see 60
L. 413.

As to validity of voluntary conveyances, see 17 A. D. 755; 26
A. D. 194; 14 A. S. 739; 53 A. S. 62; 67 A. S. 503.



1684



Tit.iii.] ASSIGNMENT, ETC. § 3449



TITLE III.

ASSIGNMENTS FOR THE BENEFIT OF CREDITORS.

§ 3449. When debtor may execute assignment.

§ 3450. Insolvency, what.

§ 3451. Certain transfers not affected.

§ 3452. What debts may be secured.

§ 3453. What preferences may be given [repealed].

§ 3454. Preference must be absolute [repealed].

§ 3455. Certain rights not affected by preferences in assignment

[repealed].

§ 3456. Joint and separate debts [repealed].

§ 3457. Assignment, when void.

§ 3458. The instrument of assignment.

§ 3459. Compliance with provisions of last section necessary to
validity of assignment.

§ 3460. Assignee takes, subject to rights of third parties.

§ 3461. Inventory required.

§ 3462. Verification of inventory.

§ 3463. Recording assignment and filing inventory.

§1364. Same. More than one assignor. Recording assignment.

§ 3465. Assignment, when void.

§ 3466. Assignment of real property.

§ 3467. Bond of assignees.

§ 3468. Conditions of disposal and conversion.

§ 3469. Accounting of assignee.

§ 3470. Property exempt.

§ 3471. Compensation.

§ 3472. Assignees protected for acts done in good faith.

§ 3473. Assent of creditor necessary to modification of assign-
ment.



§3449. WHEN DEBTOR MAY EXECUTE ASSIGNMENT.

An insolvent debtor may in good faith execute an assignment
of property in trust for the satisfaction of his creditors, in
conformity to the provisions of this chapter; subject, how-
ever, to the provisions of this code relative to trusts and
fraudulent transfers, and to the restrictions imposed by law
upon assignments by special partnerships, by corporations,
or by other specific classes or persons.

1685



§ 3449 CIVIL CODE. [Div.IV.Pt.II.

[Form of assignmeut.] Every such assignment shall con-
tain a list of the names of the ci-editors of the assignor, and
their places of residence and amounts of their respective
demands, and the amounts and nature of any security there-
for, and shall, subject to the other provisions of this section,
be made to the sheriff of the county, or city and county,
wherein the assignor resides, if the assignor resides within
this state; or in case the assignor resides out of this state,
then to the sheriff of the county, or city and county, wherein
the property assigned, or some of it, is situated; but when
the assignor resides out of the state, an assignment made
as herein provided may, by its terms, transfer any property
of the assignor in this state.

[Sheriff to take possession — Notice to creditors.] The sher-
iff shall forthwith take possession of all the property so
assigned to him, and keep the same till delivered by him, as
hereinafter provided. When the assignment has been made,
as herein provided, the sheriff shall immediately, by mail,
notify the creditors named in the assignment, at their places
of residence as given therein, to meet at his ofHce on a day
and hour to be appointed by him, of not less than eight nor
more than ten days from the date of the delivery of the
assignment to him, for the purpose of electing one or more
assignees, as they may determine, in the place and stead of
the said sheriff in the premises, and shall also publish a
notice of such meeting, and the purpose thereof, at least
once before such meeting, in some newspaper published in
his county, or city and county.

[Notice to contain demand on creditors. ] The notice so to
be mailed shall also contain a statement of the amount of
the demand of the creditor, and the amount and nature of
any security therefor, as set forth in the assignment; and if
any creditor shall not find the amount of his claim to be
correctly so stated, he may file with said sheriff, at or before
such meeting, a statement, under oath, of his demand, and
such statement shall, for the purpose of voting as hereinafter
provided, be accepted by said sheriff as correct; and when

1686



Tit.III.] ASSIGNMENTS, FOR, ETC. § 3449

no such statement is filed, the statement of amount as set
forth in the assignment shall be accepted by the sheriff as
correct. No creditor having a mortgage or pledge of real
or personal property of the debtor, or lien thereon, for secur-
ing the payment of a debt owing to him from the debtor,
shall be allowed to vote any part of his claim at such meet-
ing of creditors, unless he shall have first conveyed, released,
or delivered up his said security to said sheriff, for the bene-
fit of all creditors of said assignor. At such meeting the
sheriff shall preside, and a majority in amount of demands
present or represented by proxy shall control all questions
and decisions.

The creditors may adjourn such meeting- from time to time,
and may vote on all questions either in person or by proxy
signed and acknowledged before any officer authorized to
take acknowledgments, and filed with the sheriff. At such
a meeting, or any adjournment thereof, the creditors may
elect one or more assignees from their own number, in the
place and stead of the sheriff, and the person or persons so
elected shall afterwards be the assignee or assignees under
the provisions of this title; and the sheriff, by transfer in
writing, acknowledged as required by section three thousand
four hundred and fifty-eight, shall at once assign to such
elected assignee or assignees, upon the trusts in this title
provided, all the property so assigned to him, and deliver
possession thereof. All recitals in such assignment by said
sheriff of notices of such meeting, and the holding thereof,
and of the due election of such assignee or assignees, shall
be prima facie proof of the facts recited.

[Sheriff's fees and expenses.] The sheriff shall, before the
delivery of such assignment, be paid the expenses incurred
by him, and fees in such amount as would by law be col-
lectable if the property assigned had been levied upon and
safely kept under attachment. Thereupon, and after the
record of such last-named assignment, as in this title pro-
vided, such elected assignee or assignees shall take, and hold,
and dispose of all such property and its proceeds, upon the

1687



§ 3449 CIVIL CODE. [Div.IV,Pt.II.

trusts and conditions and for the purposes in this title pro-
vided.

History: Enacted March 21, 1872; amended March 7, 1889,
Stats, and Amcits. 1S89, p. 80-2; March 26, 1895, Stats, and
Amdts. 1895, pp. 82-4.

See Kerr's Cyc. C. C. for 32 pars, annotation.

13 P. 166, 16-7 (fraudulent intent of assignment for benefit
of creditors is question of fact, and not of law) ; 63 C. 187, 188
(cited); 78 C. 263, 265, 267, 20 P. 561 (referred to); 83 C. 234,
237, 23 P. 298, 299 (referred to); 87 C. 453, 456, 25 P. 675, 676
(cited); 94 C. 180, 188, 29 P. 495, 498 (referred to); 98 C. 409,
411, 33 P. 325, 326 (referred to); 104 C. 395, 399, 38 P. 53 (re-
ferred to); 108 C. 81, 86, 87, 41 P. 29 (referred to); 112 C. 476,
495, 44 P. 810 (referred to); 113 C. 429, 431, 45 P. 703 (referred
to); 124 C. 160, 161, 163, 56 P. 883 (referred to); 128 C. 103, 107,
60 P. 675 (referred to); 139 C. 362, 367, 73 P. 182 (referred to);
144 C. 511, 513, 516, 78 P. 30 (referred to); 148 C. 18, 27, 82 P. 374
(referred to in construing § 1204 C. C. P.).

As to assignments for benefit of creditors affirmed by cred-
itors, though fraudulent, see 18 A. D. 622.

As to assignment for benefit of creditors, in general, see 2 A.
S. 24-26.

As to authority of partner to assign partnership property,
see Kerr's Cyc. C. C. § 2430 and note.

As to conditional assignments invalid, see 58 A. S. 83.

As to creditor's right to compel execution of trust, see 90 A.
D. 507.

As to fraud, effect of, in assignments for benefit of creditors,
see 58 A. S. 95-99.

As to fraudulent assignments, see 26 A. D. 585.

As to insolvency of corporations, and their right to make as-
signments for the benefit of creditors, see 57 A. S. 76-84.

As to intendments in favor of assignment, see 74 A. D. 698.

As to limitation of corporate powers, see Kerr's Cyc. C. C.
§ 355 and note.

As to modification of assignments, see Kerr's Cyc. C. C. § 3473
and note.

As to omission of assets from inventory, see 58 A. S. 75.

As to title of assignor passing by assignment, see 45 A. D.
709.

As to validity of transfer of property of special partnership,
made after, or in contemplation of, insolvency, see Kerr's Cyc.
C. C. § 2496 and note.

As to when an assignment for the benefit of creditors is
deemed fraudulent, and effect of the fraud on the assignment,
see 58 A. S. 74-101.

1688



Tit.III.] INSOLVENCY, WHAT IS. §§ 3450, 3451

Does an assignment for benefit of creditors preclude discliargre
under bankruptcy or insolvency laws. — See 28 A. D. 212-219.

Infant's assignment for benefit of creditors, validity of. — See
18 A. S. 597, 598.

Power of assignees over unpaid stock subscriptions. — See 3
A. S. 833.

Retention of possession, after assignment, as evidence of
fraud.— See 29 A. R. 787-789.

That state insolvent laws are superseded by United States
Bankruptcy Law of July 1, 1898, see 89 A. S. 127, but compare
note 94 A. S. 584.

§3450. I>'SOLYENCY, ^VHAT. A debtor is insolvent,
within the meaning of this title, when he is unable to pay
his debts from his own means, as they become due.
History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 2 pars, annotation.

74 C. 540, 543, 16 P. 317, 318 (referred to); 78 C. 573, 576. 21
P. 305, 306 (referred to); 84 C. 41, 48, 23 P. 1088, 1090 (referred



Online LibraryCaliforniaThe codes of California as amended and in force at the close of the thirty-eighth session of the Legislature, 1909 (Volume 2 Civil Code) → online text (page 138 of 156)