McElroy v. Puget Sound National Bank

This is an action brought by a receiver of an insolvent corporation to recover what is alleged to be an unlawful preference made in violation of our trust fund doctrine.

The complaint, after making the necessary formal allegations and alleging the insolvency of the corporation, avers that, while so insolvent and for the purpose of creating a preference, the corporation executed and delivered to the defendant bank a chattel mortgage upon more than $16,000 worth of personal property, and:

“That plaintiff is informed and believes, and upon such information and belief alleges, that said Puget Sound…