National Security Bank v. Butler - 129 U.S. 223 (1889)
U.S. Supreme Court
National Security Bank v. Butler, 129 U.S. 223 (1889)
National Security Bank v. Butler
Argued January 14, 1889
Decided January 28, 1889
129 U.S. 223
From the facts of this case it was held that the intent of a national bank, after it was insolvent, to prefer a creditor by a transfer of assets in violation of § 5242 of the Revised Statutes was a necessary conclusion; that if any other verdict than one for the plaintiff in a suit at law by the receiver of the bank to recover the value of the assets from the creditor had been rendered by the jury, it would have been the duty of the court to set it aside, and that it was proper to direct a verdict for the plaintiff.
The meaning of § 5242 is not different from the meaning of § 52 of the Act of June 3, 1864, c. 106, 13 Stat. 115.
It is sufficient under § 5242 to invalidate such a transfer that it is made in contemplation of insolvency, and either with a view on the part of the back to prevent the application of its assets in the manner prescribed by chapter 4 of title 62 of the Revised Statutes or with a view on its part to the preference of one creditor to another, and it is not necessary to such invalidity that there should be such view on the part of the creditor in receiving the transfer, or any knowledge or suspicion on his part at the time, that the debtor is insolvent or contemplates insolvency.
The case is stated in the opinion.