Central-Penn, Bank v. N.J. Fidelity

New Jersey Fidelity and Plate Glass Insurance Company (New Jersey) transferred to the Commercial Casualty Insurance Company (Commercial) over a million dollars in securities. New Jersey was insolvent at the time. Ten days later, the commissioner of banking and insurance took possession of its property and business. Vice-Chancellor Backes concluded that the transfer violated section 64 of the Corporation act (Comp. Stat. p.1638), and was void as against creditors. 117 N.J. Eq. 548. Complainants now move for a decree and the question is raised whether the securities which were turned over to…