Schwartz v. Maguire

The opinion of the court was delivered by

Heheb, J.

We are of the view that the chattel mortgages are void with respect to the Film Automatic Corporation’s creditors as transfers of its property in contravention of R. 8. 1937, ll¡.:lI-2. They were given to secure a pre-existing indebtedness, and are not therefore supported by a “valuable consideration” within the intendment of the clause exempting ■from the operation of the statute a conveyance to a bona fide purchaser for a valuable consideration, without notice of the insolvency, or of the sale being made in contemplation thereof, before the…