Merchants' National Bank v. Cook - 95 U.S. 342 (1877)
U.S. Supreme Court
Merchants' National Bank v. Cook, 95 U.S. 342 (1877)
Merchants' National Bank v. Cook
95 U.S. 342
1. The Court, upon consideration of the facts in this case, holds that it appears that an insolvent debtor transferred certain securities to his creditor with a view to give him a fraudulent preference, and that the latter received and appropriated them, having reasonable cause to believe that the debtor was insolvent.
2. The creditor is therefore liable to the assignee in bankruptcy of the debtor for the securities or for their value.
The facts are stated in the opinion of the Court.