Bank of Alexandria v. Herbert - 12 U.S. 36 (1814)
U.S. Supreme Court
Bank of Alexandria v. Herbert, 12 U.S. 8 Cranch 36 36 (1814)
Bank of Alexandria v. Herbert
12 U.S. (8 Cranch) 36
The trustee of an insolvent debtor in the District of Columbia represents the creditors of the insolvent, and can take advantage of a defect in a mortgage of which the insolvent himself could not.
A bill in chancery was brought by W. Herbert, Jr., trustee for the creditors of John Potts, an insolvent debtor under the act of Congress for the relief of insolvent debtors within the District of Columbia against the Bank of Alexandria to recover the proceeds of a tract of land, the property of Potts, which had been sold by consent and the money deposited in the bank. This land had been conveyed by Potts to Ludwell Lee in trust to secure the payment of money borrowed of the bank by Potts, but the deed of mortgage had not been recorded within the time limited by the law of Virginia, which governs this case and which declares that all deeds of mortgage whatsoever, although good between the parties, shall be void as to creditors and subsequent purchasers without notice unless they be recorded within eight months after their date.