MacOn Bank and Trust Co. v. Holland

HIGHERS, Judge.

This case involves the question of whether the transfer of real property by a surety on three promissory notes is a transfer in fraud of creditors.

Ruby Holland signed as surety on three promissory notes executed by her daughter, Barbara Lankford, to the plaintiff, Macon Bank and Trust Company. Ms. Lank-ford was in the business of selling wood stoves, and these notes were used to finance inventory and to pay existing debts of the business. The dates and amounts of the notes were as follows: (1) December 20,1978, for $3,000; (2) March 29,1980, for $5,694.67; and (3) February 21,…