Atlas Tack Co. v. Macon Hardware Co.

1. Certain mortgages given by the Macon Hardware Co., an insolvent corporation, to creditors holding its notes endorsed by its directors, were attacked upon the ground that such mortgages were executed for the purpose of Indemnifying the directors against their endorsements. The purpose for which an insolvent corporation may mortgage its assets to creditors holding pre-existing debts upon which its directors have become liable as sureties or endorsers, has been considered several times by this court. In Weihl, Probasco & Co. v. Atlanta Furniture Mfg. Co., 89 Ga. 297, it was held that “A…